Labor extends compulsory income management despite 2022 promise to scrap it
The federal Labor government has prolonged the BasicsCard income-management scheme for Territorians, overturning its 2022 election pledge to make it voluntary.
The Labor administration quietly repealed a provision that would have ended compulsory income management in July, extending the BasicsCard scheme until 2033 for over 30,000 people in the Northern Territory, the majority being Indigenous. Critics, including the Central Land Council and ANU researcher Elise Klein, describe the policy as discriminatory and cite research showing negative impacts on child health and school attendance.
The Greens' Penny Allman-Payne moved to stop the extension, but the motion was voted down by both major parties. Federal ministers defended the move, saying the cashless debit card was abolished in 2023 and that the BasicsCard remains a necessary tool, while promising future reforms to involve Aboriginal leadership. The legislative changes will be examined by the Community Affairs References Committee on September 18.
Why it matters
Extending a contested welfare scheme affects thousands of Indigenous Australians and raises questions about government promises and human rights.
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