Presentation on theme: "FCA Conference, 16 May 2012 Eliza Strapp Department of Families, Housing, Community Services and Indigenous Affairs Income Management."— Presentation transcript:
FCA Conference, 16 May 2012 Eliza Strapp Department of Families, Housing, Community Services and Indigenous Affairs Income Management
Income management What is income management trying to achieve? Reducing immediate financial hardship, particularly for children Promoting positive social norms Addressing social issues, eg alcohol and drug abuse Encouraging social and economic participation
Income management What is income management? Income management supports vulnerable welfare recipients by directing a percentage of their income support towards priority items, such as food, clothing and utility bills. Income managed funds cannot be used to purchase excluded goods, including alcohol, home brew kits, home brew concentrates, tobacco products, pornographic material and gambling goods and activities.
Income management MYTHS Income Management reduces the amount of a persons government payments INCORRECT People have no say or control over where their money goes INCORRECT People who are income managed can only spend their money with a BasicsCard INCORRECT The BasicsCard restricts people to shop at a small number of shops and only buy basic food and clothes INCORRECT
Income management Example $1093.60 / fortnight 50% discretionary funds = $546.80 50% income managed funds = $546.80 Allocations:$ Rent360.00 Phone and internet35.00 Power40.00 BasicsCard111.80
Place-based income management A place-based model of income management will be introduced to five of the Local Government Areas across Australia from 1 July 2012: Greater Shepparton (Victoria) Logan (Queensland) Rockhampton (Queensland) Bankstown (New South Wales) Playford (South Australia)
Income management The role of financial counsellors and money management workers Helping people build longer term financial capability One-on-one mentoring/coaching and group training Supports which complement income management – debt management etc.
Income management Key messages Income management is essentially a budgeting tool It will work for some people, but may not benefit others It can help people get back on their feet, particularly when used with other supports