Federal Labor will make the controversial basics card optional within the first term of government if it wins the election next month, making a commitment that any broad-based income management should be voluntary.
Shadow minister for Indigenous Australians and social services Linda Burney said there were some circumstances where the party believed income management was appropriate, for example where domestic violence orders were in place, but it should not be broadly compulsory.
"There will be careful consideration by Labor of all of the issues involved; careful consideration of a timetable ... and it will be done in close consultation with people involved," Senator Burney said.
The basics card was first introduced in the Northern Territory during the Howard government's 2007 intervention and according to the latest government data published in February this year, there were 24,018 people in the NT on the card.
People who volunteer to use the card have 50 per cent of their regular welfare payment set aside for basic necessities, which they are not able to withdraw as cash or spend on certain items, like alcohol and cigarettes.
The majority of people on the basics card in the Northern Territory have been placed on income management involuntarily, with 4,886 people in the "disengaged youth" category, and 17,055 long-term welfare payment recipients.
For those people, 70 per cent of their welfare payment is quarantined for basic necessities.
Basics card not always effective
Senior Alyawerre man and Alice Springs town councillor Michael Liddle said opinions on the basics card were divided among First Nations people in the Northern Territory.
"I've got a lot of family members that swear by the basics card," he said.
"They like it because it's a relief to know that they haven't spent all their money ... it lessens giving money out [to family members] and it provides sustainability in regards to food shopping."
But, for the most part, he said the basics card had not worked.
Mr Liddle said government policies on income management were confusing to Indigenous people living in remote communities, and better financial education was needed.
CLP would maintain income management
Country Liberal Party candidate for Solomon, Tina MacFarlane, said scrapping welfare management was dangerous.
"It is to help the most vulnerable people — you've got women and children, they want to eat at night and it is beneficial to them," she said.
Deputy Chief Minister and Police Minister for the Northern Territory Labor government, Nicole Manison said it was important people had control over their income.
She said there were associated issues around crime that needed to be addressed with a holistic approach.
"We have seen in the past if people do get cut off the basics card that it does add significant pressures to the family groups ... when we see people that can't access cash it often also results in property crimes," Ms Manison said.
