Appendix C: FaHCSIA's program logic for new income management

Reduce immediate hardship and deprivation by ensuring that people who receive welfare payments:

• meet their immediate priority needs and those of their children and/or dependents 
• are supported to meet community norms in relation to budgeting for priority needs.

Reduce the amount of funds available to be spent on excluded items.

Encourage responsible parenting and social behaviour by linking it to exemptions from compulsory IM.

Improve the level of protection afforded by the social security system in Australia. Strengthen participants' financial capability and skills to reduce risk of hardship and crisis.

Youth—Under 25 years in receipt of certain income support payments (ISP) for 3 or more months.

Long-term dependency—Recipients of certain working age ISP for 12 months or more.

Individuals referred by State or Territory Child Protection Authorities—in receipt of all ISP payments.

Individuals referred by Centrelink Social Workers—in receipt of all ISP payments.

Individuals choosing to opt-in (Volunteer) — in receipt of all ISP payments.

Budget funding.

Relevant Legislation and amendments.

Bilateral Agreement-Comm. and State/ Territory Child Protection Authority(ies).

Staff (Centrelink and Money Management/Financial Counselling (MM&FC)), including level/skills /knowledge.

Other inputs include:

• policy guide
• BasicsCard
• IT systems
• research
• data
• evaluations and
• media.

Community/stakeholder consultations.

Communication strategy to potential clients and service providers.

Delivery of MM&FC programs.

Income management funds are allocated.

Infrastructure to support the allocation of funds.

Incentive payment & matched savings payments are paid.

Continued contact with CPSIM customers.

Stores signed up to BasicsCard.

Reviews of customers on:

• existing IM and
• NIM:
  • new customers
  • transitioning customers and
  • exiting customers.

Evaluation reports (inc longitudinal case studies & geospatial mapping).

Evidence based data & monitoring.

Exemption processes are in place.

Money is spent on priority needs.

Increased regular child school attendance. 

Increased take-up of early childhood education.

Increased take-up of money management and financial counselling services.

Ability to use BasicsCard (stores are available, understanding how to operate card, including checking balances).

Ability to develop basic household budgeting practices. Reduce available funds for gambling, porn, alcohol

Ability to adhere to budget.

Ability to plan for expected expenses (e.g. car registration).

Improved food and housing security.

Reduction in harmful behaviours.

Reduction in pressure to give money to family members or others (including humbugging).

Increased confidence or capacity to manage finances and budgeting

Sustained higher rates of  child school attendance.

Maintenance of higher rates of early childhood education attendance.

Children's wellbeing (in relation to priorities being met), is improved.

Increased financial literacy.

Ability to set aside money for unexpected expenses (e.g. car repairs, illness).

Contributes to increased choices and opportunities.

Contributes to greater self-reliance and economic, social and community engagement for Australians.

Income management is no longer required.

Identification of best practices for implementation/delivery of NIM.

Availability and take up of financial services.

Comparative outcomes for all clients and their families using and not using financial services.

Client assessment of benefit of NIM, including each component.

How money is spent.

Take up of VIM after NIM ceases, including reasons.

Take up of other services, including:

• Centrepay
• NILS
• Incentives Payment and

Matched Savings Scheme.

Policy intent assumptions include:

• children, families and communities will benefit as a result of the new income management
• children will have better access to priority needs
• customers will volunteer to be on VIM
• incentives will contribute to less attrition among VIM customers
• matched savings initiative will encourage customers to complete relevant money management/financial counselling education programs
• money management and financial counselling education programs will educate customers in basic budgeting
• Australians will support the new income management
• stores will provide BasicsCard facilities
• relevant infrastructure (including Merchants and MM/FC services) will be available and reliable
• there will be availability of skilled staff
• families will not relocate
• customers will use their income support payments for what they are intended for
• Child Protection authorities will engage and refer customers
• customers will understand the exemptions and will be able to apply for them and
• money management and financial counselling services will educate customers so they are not reliant on income management.

Policy outcome assumptions include:

• children, families and communities will benefit as a result of the new income management
• children's wellbeing (in relation to priority needs) will be improved
• access to priority items will benefit children/the vulnerable.
• matched savings initiative will encourage customers to complete relevant money management/financial counselling education programs
• money management and financial counselling education programs will educate customers in basic budgeting practices which in turn will allow them to plan for expected and unexpected expenses
• income management will improve food and housing security
• regular child school attendance will improve
• take up of early childhood education will increase
• regular child school attendance and take up of early education will benefit children
• money management and financial counselling will increase financial literacy
• income management, together with money management/financial counselling services, will contribute to greater self reliance and economic, social and community engagement, and increase choices and opportunities and
• the exemption requirements may encourage people to take up services so they have the documentation be become exempt from IM.