Income management in the Northern Territory

Income management is now in place in all Northern Territory Emergency Response (NTER) communities and town camps. More than 15,600 people currently have their welfare payments income managed by Centrelink.

The NTER was implemented to protect Aboriginal children in the Northern Territory from abuse and to ensure their needs such as food, clothing and shelter are met. 

Income management has been a critical aspect of the response, designed to establish a safe and healthy environment for children. By redirecting 50 per cent of a person’s payments to housing, utilities and food, the amount of excess cash flow, which can often fuel abusive behaviour such as substance and alcohol abuse, is reduced. 

Half of all income-support and family-assistance payments are income managed so that the money can be directed towards food, school nutrition, rent and other priority  items. 

One hundred per cent of advances, lump sums, Baby Bonus instalments and payments under the Government’s Economic Security Strategy are income managed.

Funds that are income managed cannot be used to purchase excluded goods such as alcohol, tobacco, pornography or gambling products.
These provisions affect all people (Indigenous and non-Indigenous) who live in prescribed areas of the Northern Territory and who receive welfare payments.

Income management is being applied across communities to avoid a situation where people are ‘humbugged’ or threatened to hand over cash. These obligations follow individuals and primary carers even if they move out of the prescribed areas.
No entitlements are being removed. Private income, such as wages, superannuation and child support, is not affected.

Income management has been introduced into NTER communities progressively in a process managed by Centrelink. Centrelink teams have been visiting communities to explain the new arrangements and meet with each welfare recipient to decide how a person’s income-managed funds will be used.

For each community the implementation of income management, and the period during which it will be in place, are at the discretion of the Minister for Families, Housing, Community Services and Indigenous Affairs (the Minister).

In October 2008 the Minister announced that income management would continue in its current form until the Government consults on a new policy that does not involve suspension of the Racial Discrimination Act (RDA).

Legislation will be introduced to lift the RDA suspension in the Spring 2009 sittings of the Australian Parliament. The Government will also move to ensure people subject to income management in the Northern Territory have access to the Social Security Appeals Tribunal and the Administrative Appeals Tribunal.

In a number of communities financial literacy information and training are being provided in conjunction with income management. Additional funds were provided in the 2008 Budget to extend this training.

In September 2008 the Australian Government began introducing a new income management card, known as the BasicsCard. The BasicsCard provides people on income management with greater choice and flexibility to purchase everyday priority goods and services from a broad range of merchants via the existing EFTPOS network. It also reduces the administrative requirements for merchants wishing to provide goods and services to income-managed customers making it easier for them to process transactions.

The card is PIN protected and customers are able to discuss with Centrelink a regular fortnightly allocation of income-managed funds to be put on the card.

For more information on how the roll out of the BasicsCard, see the fact sheet on the Centrelink website.

For more information about income management, contact Centrelink’s Indigenous Call Centre on 13 6380.