Compulsory income management in the Northern Territory - evaluating its impact

• Published in: The Australian journal of social issues Vol. 50; no. 4; pp. 373 - 396
• Main Authors: Bray, J Rob, Gray, Matthew, Hand, Kelly, Katz, Ilan
• Format: Journal Article
• Language: English
• Published: Sydney John Wiley & Sons, Inc 01.06.2015; Blackwell Publishing Ltd
• Subjects: Aboriginal Australians; Alcohol; Child sexual abuse; Children; Children & youth; conditional welfare; Economic conditions; Evaluation; Expenditures; Families & family life; Gambling; Government policy; Government spending; Harassment; Income; Income maintenance programs; income management; Indigenous peoples; Indigenous policy; Management; Native peoples; Paternalism; Payments; Pedophilia; Personal finance; Pornography; Pornography & obscenity; program evaluation; Racial discrimination; Retirement planning; Sex crimes; Sexual abuse; Social conditions; Social policy; Supplemental security income program; Tobacco; Welfare; Welfare recipients; Northern Territory; Australia
• ISSN: 0157-6321; 1839-4655
• DOI: 10.1002/j.1839-4655.2015.tb00356.x

Australia has been experimenting with constraining the ways in which welfare recipients can spend their income support payments, limiting their ability to access cash and purchase some products. The policy objectives include to reduce spending on alcohol, gambling, pornography and tobacco in favour of meeting 'basic' family needs, especially for children, to limit the scope for financial harassment, encourage pro-social behaviours, and build financial capabilities. In the logic of the programs these outcomes are expected to be manifest at the individual, family and community levels. The policy has primarily impacted on Indigenous Australians as a result of its geographic targeting, although a recent report has recommended a more stringent version of the program be introduced universally to all welfare recipients other than the aged. The largest of these experiments is 'New Income Management' in the Northern Territory, which has had more than 35,000 participants since its introduction in 2010. This article reports on the key findings of the major independent evaluation of New Income Management commissioned by the Australian Government.