Dealing with social security

Since 1 July 2012, some welfare recipients living in ‘declared areas’ have been subject to compulsory income management. The income management regime has evolved since 2012 to also target specified groups of income support payment recipients, based on their higher risk of social isolation and disengagement, poor financial literacy, and economic abuse. In September 2023, following commencement of the Social Security (Administration) Amendment (Income Management Reform) Act 2023 (Cth), people currently subject to the income management regime can choose to move to the enhanced income management regime. Part 3B of the SSA Act sets out the relevant provision in relation to the income management regime. Income management refers to an arrangement where a portion of a person’s welfare payment is income managed and directed towards their ‘priority needs’ (s 123TH SSA Act). This means a welfare recipient loses the choice to spend a percentage of their Centrelink payment on things other than the goods and services deemed to be priorities by the Australian Government.

Priority needs include food, clothing, health items, education and training, childcare, housing, household utilities, public transport and acquisition, and repair and maintenance of a motor vehicle.

A welfare recipient is given a Basics Card, which can be used to pay for priority needs. The Basics Card can be only used at approved stores and businesses through the EFTPOS system. The Basics Card cannot be used to buy alcoholic products, tobacco products, pornography, gambling products and services or homebrew kits and concentrates. It does not allow a welfare recipient to withdraw cash from EFTPOS terminals or from ATMs.

Centrelink contacts those who are to be subject to income management. Target Groups A person may become subject to the income management regime because they are in a certain target group of people, and receiving a particular category of income payment. The target groups are listed under s 123TA of the SSA Act and specified in more detail under Division 2, Subdivision A and B, ss 123UA-123UGA of Part 3B of the SSA Act. The category of payments are defined in s 123TC of the SSA Act. People who could become subject to income management include people who are referred by the Queensland Family Responsibilities Commissions under the Cape York Welfare Reform, disengaged youth, long-term welfare payment recipients, vulnerable youth, people who are referred to the regime by child protection authorities and people referred for income management by other state and territory authorities. People who are not in any of the target groups, and reside in a declared area, may also volunteer for income management (s 123UFA SS Act).

Under s 123TGA of the SSA Act, the Minister may declare that a state, territory or a specified area is a declared voluntary income management area. If you reside in one of these areas, you may volunteer for income management. The declared areas for the purposes of voluntary income management are:

• New South Wales: Bankstown;
• Northern Territory: the whole territory;
• Queensland: Livingstone, Logan, and Rockhampton;
• South Australia: the Anangu Pitjantjatjara Yankunytjatjara (APY) Lands, Greater Adelaide and Playford;
• Western Australia: The Kimberley region, the Ngaanyatjarra Lands (the shire of Ngaanyattjarraku and the community of Kiwirrkurra, in the shire of East Pilbara), the Peel region, Rockingham, Fremantle, Armadale, Mirrabooka, Midland, Joondalup, Cannington and metropolitan Perth;
• Victoria: Greater Shepparton.

  Enhanced Income Management regime

  Enhanced income management was introduced in 2022 (and further amended and ‘improved’ in 2023) where changes were made to move away from the cashless debit card towards a better system of income management. The difference between income management or compulsory income management and enhanced income management is that the changes made in September 2023 allow any participant on the income management regime the option to transfer to enhanced income management which offers ‘improved technology and access to over one million outlets across Australia as well as Tap and Go transactions, online shopping and BPAY.’ It allows participates who transfer or commence on enhanced income management access to the BasicsCard bank account and SmartCard. This operates like a standard Visa debit card except that participants cannot withdraw cash. The enhanced income management regime also expanded the target groups of people who could be referred onto income management and these are included above. As at 4 September 2023, entrance to the income management regime closed, and participants can now be placed only on enhanced income management. A person on a voluntary income management arrangement must end their agreement, and then volunteer for an enhanced income management arrangement. If you receive a Centrelink payment and fit the specified criteria for any of the following situations under the SSA Act then you can become subject to enhanced income management:
• Queensland Commission referral;
• disengaged youth;
• long-term welfare payment recipients;
• voluntary enhanced income management;
• child protection;
• vulnerable welfare payment recipient; or
• supporting people at risk

  Voluntary Enhanced Income Management

  If you are in receipt of a social security benefit or pension, or ABSTUDY, and you live within one of the following areas then you can volunteer for enhanced income management:
• Northern Territory, NT
• Bankstown, NSW
• Bundaberg region or Hervey Bay region, QLD
• Rockhampton, Logan or Livingstone, Qld
• Cape York and Doomadgee region, Qld
• Metropolitan Perth, Peel region, Kimberley region WA
• Ngaanyatjarra Lands, WA
• Goldfields, Kununurra or Wyndham in the East Kimberley region, WA
• Ceduna region, SA
• Greater Adelaide, SA
• Playford or Anangu Pitjantjatjara Yankunytjatjara (APY) Lands, SA
• Shepparton, VIC

People who are subject to income management have the right to apply for an exemption. The exemptions available depend on whether the welfare recipient is the main carer of a school-age child (ss 123UGB– 123UGG SSA Act). If a person is exempt, income management stops for 12 months, unless their circumstances change.

People who are subject to income management and enhanced income management also have the right to appeal the decision to manage their income to the Administrative Appeals Tribunal (the appeals process is explained in ‘Administrative Appeals Tribunal’, below.)

If a child protection agency has recommended a person be subject to income or enhanced income management, that decision should first be appealed to the child protection agency that made the recommendation.