Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Hansard source

You obviously struggled to understand what income management was when you did that interview, but let me explain it to you. I know you don't like these answers, Senator Ruston, but at some point you have to let go. There has been a change of government here. You have lost the portfolio. We now have a terrific new young minister, who is dealing with solving the problems that you created over the previous nine or 10 years.

The income management scheme that you're referring to actually predates the cashless debit card program. It has been operating for more than 10 years in the Northern Territory, Cape York and 12 other communities across Western Australia, Queensland, South Australia, New South Wales and Victoria. Income management was created in 2007 as part of the Howard coalition government's Northern Territory emergency response, often referred to correctly as the Intervention. As part of that scheme, income management was initially introduced to prescribed areas of the Northern Territory, including 73 remote communities, associated outstations and 10 town camp regions. It formed part of the Howard government's response to the high levels of alcohol and substance abuse that were linked to child protection issues described in the Little children are sacred report, which was released in April 2007. The income management scheme was further developed and expanded under the Rudd Labor government.

Income management is for people who are on income support payments, who live in an income management location and who would benefit from assistance in managing their budget. It's a tool that helps individuals budget their welfare payments to ensure that they are able to pay for the essentials, such as food, clothing, housing and electricity. It works by making a proportion of a person's welfare payment income managed and directing it towards these essentials.

The key objectives of income management, under section 123TB of the administration act, are to reduce immediate hardship and deprivation by directing welfare payments to the priority needs of recipients, their partner, children and any other dependants; to help affected welfare payment recipients to budget so that they can meet their priority needs; to reduce the amount of discretionary income available for alcohol, gambling, tobacco and pornography; to reduce the likelihood that welfare payments recipients will be subject to harassment and abuse in relation to their welfare payments; and, finally, to encourage socially responsible behaviour, particularly in the care and education of children.