18.08.2011
Introduction of income management
13.6 Income management was first introduced in 2007 as part of the Northern Territory Emergency Response (NTER) to allegations of child abuse in specific Indigenous communities. Under the Social Security and Other Legislation (Welfare Payment Reform) Act 2007 (Cth), the NTER imposed income management upon peoples receiving income support or family assistance payments in 73 prescribed communities.[1]
13.7 The Australian Government implemented the income management legislation as a ‘special measure’ for the purposes of the International Convention on the Elimination of All Forms of Racial Discrimination[2] and the Racial Discrimination Act 1975 (Cth) (RDA).[3] In 2010, the income management regime was amended,[4] following legal challenges to the NTER legislation on the basis of racial discrimination against Indigenous peoples.[5]
13.8 The Australian Government announced in the 2011–2012 Budget that income management will, from July 2012, apply to all Australians in a non-discriminatory manner and no longer be a part of the Northern Territory Response policy.[6] As the NTER is set to expire in August 2012, the government will further amend income management laws to continue a new phase of the intervention.[7]
The New Income Management Model
13.9 On 1 July 2010, the Government introduced a new welfare reform phase as the New Income Management model (New IM).[8] The New IM measure applies to persons who meet the income management criteria, irrespective of race or ethnicity.[9] The New IM has four areas: the Participation/Parenting, the Child Protection, Vulnerable and Voluntary streams.[10]
13.10 The New IM commenced on 1 August 2009 and currently operates in urban and rural areas such as the Barkly region, Alice Springs, Katherine, East Arnhem, Darwin, Palmerston and other outback locations of the Northern Territory.[11] In March 2011, the estimates for Indigenous and non-Indigenous persons on New IM within the Northern Territory were 15,464 and 1,165 persons respectively.[12]
13.11 From 1 July 2012, income management will operate in other parts of Australia that include: Bankstown (NSW), Logan (Qld), Rockhampton (Qld), Playford (SA), and Greater Shepparton (Vic).[13] This is described as place-based income management.
13.12 The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) has the primary responsibility for the income management system, which is administered by Centrelink. The Department of Human Services (DHS) provides a central policy and coordination role for the government’s delivery of services, which now includes Centrelink under its Human Services Portfolio.[14] The national strategy of service delivery for Compulsory and Voluntary Income Management is undertaken by DHS.
[1]Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007 (Cth).
[2]International Convention on the Elimination of All Forms of Racial Discrimination, 7 March 1966, [1975] ATS 40 (entered into force on 04 January 1969) arts 1(4) and 2(2).
[3]Racial Discrimination Act 1975 (Cth) s 8.
[4]Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of the Racial Discrimination Act) Act 2010 (Cth).
[5] For example, in the High Court case of Wurridjal v Commonwealth (2009) 237 CLR 309 Kirby J observed that the Northern Territory Emergency Response Act 2007 (Cth) ‘expressly removes itself from the protections in the Racial Discrimination Act 1975 (Cth) and hence, from the requirement that Australia, in its domestic law, adhere to the universal standards expressed in the International Convention on the Elimination of All Forms of Racial Discrimination, to which Australia is a party’: [213]. See Department of Parliamentary Services, Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Bill (2009) <http://aph.gov.au/Library/pubs/bd/2009-1-/10bd094.pdf> at 28 April 2011, which included changes to the Social Security Act 1991 (Cth), A New Tax System (Family Assistance) Act 1999 (Cth) and Veterans’ Entitlements Act 1986 (Cth).
[6] Australian Government, Stronger Futures in the Northern Territory (2011), [5].
[7] M Franklin and M Rout, ‘No Retreat on Northern Territory Intervention’, The Australian, 22 June 2011, <http://www.theaustralian.com.au/national-affairs/no-retreat-by-julia-gillard-on-northern-territory-intervention/>. See also Australian Government, Stronger Futures in the Northern Territory (2011).
[8] See Department of Families, Housing, Community Services and Indigenous Affairs, The New Model of Income Management (2010) <http://www.fahcsia.gov.au/sa/families/pubs/nim/Pages/p2.aspx> at 24 June 2011. NIM was introduced on 1 July 2010 and applied to people irrespective of race or ethnicity.
[9] Department of Families, Housing, Community Services and Indigenous Affairs, Evaluation Framework for New Income Management (2010) <http://www.fahcsia.gov.au/sa/families/pubs/nim/Pages/p2.aspx> at 27 June 2011, [2].
[10] Department of Families, Housing, Community Services and Indigenous Affairs, The New Model of Income Management (2010) <http://www.fahcsia.gov.au/sa/families/pubs/nim/Pages/p2.aspx> at 24 June 2011.
[11] Department of Families, Housing, Community Services and Indigenous Affairs, Evaluation Framework for New Income Management (2010) <http://www.fahcsia.gov.au/sa/families/pubs/nim/Pages/p2.aspx> at 27 June 2011.
[12] Department of Families, Housing, Community Services and Indigenous Affairs, Centrelink Administrative Data, 7 April 2011.
[13] Department of Families, Housing, Community Services and Indigenous Affairs, Income Management (2011) <http://www.fahcsia.gov.au/sa/indigenous/progserv/ntresponse/about_res> at 24 June 2011.
[14] T Plibersek, The Human Services Portfolio <http://www.mhs.gov.au/the_human_services_portfolio.php> at 22 July 2011.