Spotlight on economic abuse - Good Shepherd Youth & Family ...

Centrelink may seek to recover payments from her sponsor who may be her ex-partner, a
situation which has been seen as placing the woman at increased risk of being subjected to
further violence (Braaf & Barrett Meyering 2011).
A crisis payment provided through Centrelink is equal to one week of a standard benefit, and
can be paid to people who experience severe financial hardship due to domestic violence
and who are already receiving Centrelink income support payments. The payment can be
made to people who have had to leave their home because of domestic or family violence or
who remain in the home after a family member left or was removed due to domestic
violence. However, women exiting violent relationships who are not eligible for Centrelink
payments cannot access this payment.
State governments also provide some crisis and hardship assistance and concessions for
people on low incomes. For example, in Victoria there is an annual energy concession for
low income households and a utility relief grant scheme to assist people in financial difficulty
with gas, electricity or water bills. However, most of these types of assistance are only
available to people who are eligible for a Health Care Card, thus excluding many women
escaping domestic violence who may have assets ‘on paper’ but who actually have very
limited immediate access to funds to pay for essential goods and services.
Income management
In 2007 the Howard Liberal-National Coalition Government introduced the income
management scheme under which a proportion of a person’s income support payments are
‘quarantined’ or able only to be spent on certain goods and services (for example, health
care, housing, food, clothing, education). While initially introduced as a compulsory scheme
in some Aboriginal communities in the Northern Territory and as part of a trial in Cape York,
provisions were also made for voluntary income management. The Labor Government has
maintained and extended the scheme and from July 2012 it will operate throughout the
Northern Territory and in five new locations, which are the local government areas of
Shepparton (Victoria), Bankstown (New South Wales), Rockhampton (Queensland),
Playford (South Australia) and Logan (Queensland). The income management scheme
utilises a ‘BasicsCard’ which a person can use to purchase goods and services from
approved businesses while there are restrictions on funds being spent on alcohol, tobacco,
pornographic material and gambling products. Other features of the scheme include
matched savings plans, money management services and training, financial counselling and,
in the case of voluntary participants, financial incentives for staying in the scheme
(Buckmaster & Ey 2012).
Income support payment recipients who may be put onto the income management scheme
are people who are referred by state or territory child protection authorities where children
are deemed to be neglected or at risk, people assessed by Centrelink social workers as
being ‘vulnerable’ and people who volunteer for income management. Indicators of
vulnerability are financial hardship, financial exploitation, failure to undertake reasonable
self-care and homelessness or risk of homelessness. Financial exploitation is described as
occurring “when a person is subject to undue pressure, harassment, violence, abuse,
deception or exploitation for resources by another person or people, including other family
members and community members” (Department of Families, Housing, Community Services
and Indigenous Affairs [FaHCSIA] 2012, section 11.4.2.20). Thus, people who are subjected
to economic abuse are specifically identified as targets for income management.
The stated objectives of the income management scheme include to reduce hardship and
deprivation, to help people to budget, to reduce discretionary spending on restricted items, to
reduce the likelihood of people being subject to harassment and abuse in relation to their
30