More than 13,300 people in NTER communities and town camps currently have their welfare payments managed by Centrelink. Income management is a central measure in the Northern Territory Emergency Response, ensuring that
money provided to help children is used for their benefit and providing increased financial security for people raising children.
Every community member who is receiving a relevant Centrelink payment receives 50 per cent of their payment in the usual way, while the other 50 per cent is reserved to pay for priority needs, such as food, clothing, housing, transport and utilities.
People on income management meet with a Centrelink officer to agree on how the money will be allocated to best meet the needs of the household. Funds that are income managed cannot be used to purchase items such as alcohol, tobacco, pornography or gambling products.
So far more than 90 per cent of income-managed money has been spent on priority needs. There are early indications from store operators that shopping habits are changing, with community people buying more fresh fruit and vegetables, dairy goods, frozen vegetables and meat. Sales of cigarettes at community stores have approximately halved. Customers are also saving for the
purchase of whitegoods, such as fridges, so they can store fresh food at home.