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Income management has operated since 2007 in Australia in a number of different locations and forms. Drawing on the evaluations which have been conducted to date, this paper critically analyses the impacts and effectiveness of this scheme. It explains the different models of income management in use in Australia including the Basics Card, reviews how it is targeted and implemented, and discusses the findings of current evaluation studies, cost effectiveness, impact on child welfare and expenditure outcomes, incidents of financial harassment, and financial management skills. It concludes by considering the alternatives and presenting recommendations for reform.
Drawing on first-hand accounts from those living under the systems, this novel study explores the impact of Australia and New Zealand’s income management policies and asks whether they have caused more harm than good.
"From 1 July 2010 major changes are due to be made to the way income support payments are paid to recipients in the Northern Territory, and potentially across Australia. Income management fundamentally changes the way social security benefits are paid. It will apply in blanket fashion to entire categories of recipients in regions nominated by the Minister. Yet the legislation has been passed in the absence of adequate public debate or consultation with those directly affected, and with the relevant national community organisations. This policy analysis, Compulsory Income Management: A flawed answer to a complex issue, looks at the major aspects of the scheme."--ACOSS web site.
" ... Income management has been a controversial part of the Australian Government?s welfare reform agenda in recent years. While various conditions have always been applied to eligibility for welfare payments, restrictions on how payments may be spent are a new development that has been criticised by some as paternalist and stigmatising. Much of the debate surrounding income management has related to the question of evidence. That is, does a sufficient body of evidence exist to justify the policy of compulsory income management? Alternatively, is there evidence of policy failure or harmful consequences arising from income management? In other words, is income management working? ..." [taken from introduction].
"While income management has been highly controversial and attracted much public discussion, the specific details of the policy in its various forms are not generally well understood. This Background Note will address this lack of understanding by providing a brief overview of the history of income management. The Background Note then provides responses to the following key questions about income management: what is income management?; what is the BasicsCard?; how is income management intended to work?; has income management been tried elsewhere? ;what are the different forms of income management?; are exemptions from income management possible?; how many people are subject to income management?; is income management racially discriminatory?; what does income management cost?; and is income management working?"--Introduction.
Dated October 2007. The publication is effective from October 2007, when it replaces "Government accounting". Annexes to this document may be viewed at www.hm-treasury.gov.uk