The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

12.1.1 Outline of the enhanced income management regime

Note: Following commencement of the Social Security (Administration) Amendment (Income Management Reform) Act 2023, people currently subject to the income management regime can choose to move to the enhanced income management regime.

Please refer to Part 11 Income management for more information on the income management regime.

Outline

The enhanced income management regime ensures that welfare payments are not spent on prescribed products and services by paying a portion of an eligible individual’s welfare payments into a special bank account known as a BasicsCard bank account. Money in a BasicsCard bank account cannot be used to purchase alcoholic beverages, tobacco products, pornographic material, gambling services, or cash-like products (for example, gift cards) that could be used to obtain alcoholic beverages or gambling services. Individuals subject to the enhanced income management regime will receive a SmartCard that operates like a standard debit card. The SmartCard can be utilised at the majority of merchants who accept EFTPOS and Visa and can be used for a range of mainstream banking functions including 'tap and go' payments, online shopping, and BPAY bill payments.

Additionally, the enhanced income management regime will provide budgeting support and assistance for individuals previously subject to the income management regime or cashless welfare arrangements transitioning away from their prior arrangement.

Individuals can become subject to the enhanced income management regime if they meet the criteria for any of the following situations (known as measures):

  • Queensland Commission (12.3.2)
  • Disengaged youth (12.3.3)
  • Long-term welfare payment recipients (12.3.4)
  • Voluntary enhanced income management (12.3.5)
  • Child protection (12.3.6)
  • Vulnerable welfare payment recipient (12.3.7)
  • Supporting people at risk (12.3.8).

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