11.1.2.20 Financial Management Support Services Supporting Welfare Payments Reform

Financial management support services

Financial management support services (Commonwealth Financial Counselling and Money Management Services) help people to deal with financial difficulties and build money management skills and knowledge.

Financial management support services can help empower people to:

• address existing financial difficulties and deal with financial stress and hardship,
• make better and informed decisions about managing their money including managing money from payday to payday to ensure essential living expenses are covered (e.g. food, rent, clothing, education, regular bills) and share household expenses fairly,
• plan and set goals for items such as white goods, furniture, cars, boats and leisure goods and to put something aside for their children and the future,
• better use financial services to manage their household funds and access technology such as ATMs and phone and internet banking,
• exercise their rights as consumers, know how to avoid exploitation when using their money and how to get better deals when making purchases,
• improve their capacity to appropriately respond to requests for financial assistance (including refusal in some cases) to assist other people financially, or resist inappropriate requests for financial assistance, and
• understand the requirements attached to renting or owning a home.

Financial management support services are voluntary, confidential and free, and open to the broader community. Although the services are available to everyone, they are targeted at those who are most at risk of financial and social exclusion and disadvantage.

Income managed clients receive priority in accessing help from financial management support services.

Commonwealth financial counselling

Commonwealth financial counselling helps people in personal financial difficulty to address their financial problems, improve their ability to manage their finances in the future, and make informed financial choices through:

• direct casework,
• advocacy/negotiation (e.g. with creditors, Centrelink, utility companies, etc), and
• community education.

Commonwealth financial counselling often involves helping people with complex personal financial issues such as debt collection, fines and related legal issues, and is tailored to the needs of the person's financial circumstances.

Wherever possible, financial counsellors will give priority to income managed people and will arrange an initial appointment for them, where possible, within 5 working days of receiving a referral. They work with the money management services to ensure clients have the opportunity to improve their money management skills.

A national telephone counselling service is operating (1800 007 007). This national service redirects callers to their closest telephone financial counselling service provider.

Note: An person is under no obligation to discuss the detail of their contact with a financial management support service provider with Centrelink.

Money management

Money management services provide practical and essential support focussed on building people's financial literacy and money management skills. Money management workers:

• deliver education and intensive coaching in financial literacy and budgeting,
• provide use of tools to implement personal and family budgeting and savings and debt management plans including on-going budget monitoring,
• assist with accessing financial institutions and financial services information, and
• deliver money management education and information sessions that meet local community needs.

Money management workers provide people with information about the various options open to them in managing their money but do not provide financial advice or deal with matters such as bankruptcy or major tenancy issues. For these complex matters the money management worker organises a referral or appointment with a financial counsellor.

Note: An person is under no obligation to discuss the detail of their contact with a financial management support service provider with Centrelink.

Approved money management course

All money management and a majority of Commonwealth financial counselling services will deliver an 'approved money management course' for compulsory income managed people who wish to qualify for the MSP (1.2.11.10).

For further details on approved money management courses see 11.1.15.20.

Income managed clients will be given priority in accessing approved money management courses.

Details of where to access an approved money management course can be obtained from Centrelink and the Money Management and Education page on the FaHCSIA website.

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Last reviewed: 2 August 2010