Income Management in the Northern Territory

On 21 June 2010 the Australian Government passed legislation to introduce a new model of Income Management in the Northern Territory. This will replace the Income Management scheme that is currently operating in prescribed areas of the Northern Territory.

Overview

A new model of Income Management will commence across the whole Northern Territory. It will be phased in from early August 2010. The new model will replace the scheme currently operating in prescribed areas of the NT.

Income Management is a way to help you manage your money. Income Management means that part of your Centrelink payments will be set aside by Centrelink to help you pay for things you and your family need.

Income Management will not reduce the total amount of your payments from Centrelink. It will only change the way in which you receive your payments.

[ return to top ]

Eligibility for Income Management

Income Management will apply to you if:

• you are aged 15-24 and have been receiving one of the following payments for 3 of the last 6 months:
  • Youth Allowance
  • Newstart Allowance
  • Special Benefit
  • Parenting Payment (Partnered or Single)
• you are aged 25 and above and have been receiving one of the following payments for more than 1 of the last 2 years:
  • Youth Allowance
  • Newstart Allowance
  • Special Benefit
  • Parenting Payment (Partnered or Single)
• you have been referred for Income Management by a Centrelink Social Worker
• you have been referred for Income Management by Child Protection Authorities, or
• you choose to participate in Voluntary Income Management.

Note: Centrelink will contact you if Income Management applies to you.

If you are currently on Income Management under the Northern Territory Emergency Response, you will be assessed to see if you will stay on Income Management. Centrelink will contact you about any changes.

Exemptions from Income Management

In some cases, you may be eligible for an exemption from Income Management. To apply for an exemption, you will need to contact Centrelink after 1 July 2010. These exemptions do not apply to customers who have been referred by a Centrelink Social Worker or to customers that have been referred by NT Child Protection Authorities.

If you have dependent children, you must meet the following criteria to be eligible for an exemption:

• For each school aged child, you need to demonstrate that your child is enrolled in and has been attending school regularly for the past 2 terms (with no more than 5 unexplained absences in a school term).
• For each child under school age, you need to meet criteria relating to your child’s participation in early childhood services.

You will need to speak to a Centrelink Customer Service Adviser about the types of evidence that you will need to apply for this exemption, as this will vary depending on your family’s situation. Evidence may include:

• evidence of age-related immunisation
• evidence of attendance at pre-school, child-care (long day care, family day care, in home care, and occasional care), multi-purpose Aboriginal children's services, kindergarten, playgroups or early intervention parenting groups
• a report from a medical practitioner or nurse practitioner, or
• a report from an allied health professional (such as speech therapist, occupational or physical therapist).

People without dependent children may be exempt if:

• you are a full-time student or Australian Apprentice (in approved full-time study courses and approved institutions as defined by Centrelink), or
• you have worked an average of 15 hours or more per week for at least 6 of the last 12 months and been paid at least the minimum wage.

In some instances, other activities may be approved for people aged over 25 years.

For more information, refer to the Income Management exemptions factsheet.

[ return to top ]

How Income Management works

If you are on Income Management, part of your regular fortnightly payments and all of any advance or lump sum payments will be income managed. Your income managed money can be used for priority items such as food, rent, utilities and clothing.

The rest of your regular fortnightly payments will be paid to you in the usual way.

You can spend your income managed money by using the BasicsCard, or by organising direct payments to organisations such as stores, landlords, or utility providers.

Matched Savings Payment

Under Income Management you may be eligible for the Matched Savings Payment. If you are trying to save money for something you may be able to get a Matched Savings Payment of up to $500.

To get a Matched Savings Payment you must:

• be on Income Management (excluding Voluntary Income Management and Cape York Income Management)
• have completed an approved money management course
• have established a pattern of savings over at least 13 weeks, and
• have saved an amount of money equal to the amount you are applying for.

Your Matched Savings Payment will be 100% income managed.

For more information, refer to the Matched Savings Payment factsheet.

Child Protection Measure

A Child Protection Measure will be implemented into the Northern Territory. This means that NT Child Protection Authorities will now be able to refer customers to Centrelink for compulsory Income Management. If you are referred for Income Management under the Child Protection Measure you will not be eligible for an exemption.

For more information, refer to the Income Management for Child Protection factsheet.

[ return to top ]

Voluntary Income Management

If Income Management does not apply to you, you can choose to participate in Voluntary Income Management. This means that Centrelink can still help you manage your payments.

You will need to talk to Centrelink to see if your payments can be income managed. Once you sign up you will have to stay on it for at least 13 weeks. After that you can stop whenever you like.

You may also be eligible for a Voluntary Income Management Incentive Payment of $250. This will be automatically paid to you for every 26 continuous weeks you remain on Voluntary Income Management. The 26 weeks must begin on or after 1 July 2010.

This incentive payment will be 100% income managed.

For more information, refer to the Voluntary Income Management factsheet.

Money Management Services and Commonwealth Financial Counselling

Money Management Services and Commonwealth Financial Counselling can help you improve your financial skills and assist you with family budgeting, saving for a goal or manage your debt. These services are free, confidential and voluntary.

For more information on Money Management Services refer to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) website.

School meals programs

School meals programs provide breakfast and/or lunch services for children in most Northern Territory schools. If you live in the Northern Territory and care for a school-aged child, you can participate in school meals programs. Talk to your school about how to participate in the school meals program.

For more information, refer to the school meals programs factsheet.

More information

• Read the New Income Management for the Northern Territory factsheet
• Refer to Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) website.

[ return to top ]