ANU-Led Research Evidence Helps Shape Income Management in the Northern Territory

The first major report evaluating new income management measures in the Northern Territory has been released by Indigenous Affairs Minister, Jenny Macklin.

ANU researchers, Rob Bray and Matthew Gray, were the lead authors of the report that also involved the Australian Institute of Family Studies and the University of New South Wales’ Social Policy Research Centre.

In response to the evaluation findings, the Australian Government has announced changes to the policy including making exemption processes clearer and providing more money management services to help increase financial literacy.

Director of Research at the ANU’s College of Arts and Social Sciences, Professor Gray said that the initial policy was one that had both staunch supporters and strident critics.

The evaluation found mixed views and experiences of income management, with some people reporting positive impacts, while others found it intrusive and disempowering.

New Income Management was expanded throughout the Northern Territory in 2010 and consists of four streams. Under all streams, 50 per cent of a person’s income support payment is subject to income management.

The evaluation involved extensive data analysis, a survey of more than 800 people in the Northern Territory who receive income management and interviews with Centrelink staff who provide money management and financial counseling services to income management recipients.

The next stage of the project will be to identify the medium and long-term impacts of income management.

Professor Gray from the Centre for Aboriginal Economic Policy Research and Research Fellow, Rob Bray from the Social Policy Evaluation Analysis and Research Centre will continue to work on the project with the final evaluation report due in 2014.

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