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The NWRN is a network of
services throughout
Australia that provide free
and independent
information, advice and
representation to individuals
about Social Security law
and its administration
through Centrelink.
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Media Release
25 November 2009
Plan to control spending of poor is “draconian, disempowering
and down-right dangerous”, says National Welfare Rights
Network
“Reports in all of the major papers that the Federal Government has plans for a massive
expansion of conditions for receiving Centrelink payments, with half of all payments to be
only available via a Basics Card type scheme that operates in the Northern Territory (NT)
has been branded “disempowering and down-right dangerous”, said Kate Beaumont,
President of the National Welfare Rights Network (NWRN) today. “These measures are
draconian, paternalistic and extreme.
“The Government’s move to make the NTER compliant with the Racial Discrimination Act
will see the blanket income management scheme replaced with another flawed scheme.
The proposed broad ‘triggered’ based scheme will mean that too many people in the NT
will remain under income management without justification.
“As part of the proposed scheme unemployed people or parents will be punished and put
on income management because they have been on payments for one in the last two
years. This means that unemployed people will be at risk of being put on this flawed
scheme simply because they have not been able to find work after one year. While these
changes have been announced for the NT initially it should concern others that the
Government is travelling down this path at a time when the profile of the long term
unemployed suggests that by mid 2011 there could be close to half a million long term
jobless who could be subject to welfare quarantining. The penalty for being unable to find
work may result in losing control of autonomy and decision making. Policies regarding
exemptions will play a critical role in tempering the otherwise harsh effects of these
draconian measures.
“Another trigger for being placed on income management under the planned scheme is a
Centrelink Social Worker assessment in relation to financial crisis, domestic violence or
economic abuse. A major and fundamental concern is that women fleeing violence and
the elderly in situations of family abuse who are in severe distress may be discouraged
from seeking help from authorities because they may be put on income management.
“The Government needs to clarify what appeal rights will be available and what decisions
will be appealable under the new scheme.
“We remain cautious about the savings incentives measure. But all the sophisticated skills
in budgeting and teaching people on low incomes how to better manage their
money counts for zero if, as we suspect, the problem is not the ability to budget and
control spending but the paltry rates of payment. Additionally there could be perverse
responses that would see families going without priority needs such as food to receive the
matched savings from the Government at the end of 13 weeks.
“Additional support with financial counseling, and increased choice and extending
voluntary proven measures such as Centrepay are steps in the right direction. NWRN
looks forward to constructive dialogue with Government on effective measures to build on
its commitment to strengthen families and protect vulnerable children as part of this plan.”
Plans to extend payment conditionality are the subject of a broader review which, to date,
has been subject to little, if any scrutiny by the media or the broader community. NWRN’s
For comment: Kate Beaumont, President, National Welfare Rights Network: 0414 792
923 or Gerard Thomas, Policy and Media Officer: 0425 296 882.
NEWS 
