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Articles

Income management and Indigenous peoples: nudged into a Stronger Future?

Pages 285-317 | Published online: 12 Feb 2015
 

Abstract

Australian policy has been motivated by paternalism towards Indigenous peoples for the better part of Australia's colonial history. Contemporary forms of income management that disproportionately affect Indigenous peoples extend a paternalistic approach. The paternalism embedded within the income management discourse draws heavily upon the framework of ‘new paternalism’, which increases government supervision of those who receive welfare payments. However, in recent years, another form of paternalism has also been growing in popularity with Western governments – ‘nudge paternalism’ – which may have future implications for policy-making in the welfare context in Australia. This article comprises three parts. The first part explores specific problems that can arise with paternalistic policy-making directed towards Indigenous peoples, including nudge paternalism. The second part considers how income management departs from the principles of nudge paternalism, and the impact that income management has on Indigenous peoples. The final part explores some alternative suggestions for policy initiatives to address disadvantage experienced by Indigenous welfare recipients, particularly those living in the Northern Territory.

Acknowledgements

This article was prepared in response to an invitation to speak at the conference on Paternalism and Social Policy held at the Centre for Agency, Values and Ethics at Macquarie University on 8 November 2013. The author is indebted to the participants of that workshop, Dr Marina Nehme, and the anonymous reviewers for their constructive comments on an earlier draft of this article, and thanks them for their feedback.

Notes

1 Mead (Citation1997), p 1.

2 Commonwealth of Australia (Citation2007) Parliamentary Debates, House of Representatives, 7 August, 6 (Malcolm Brough); Commonwealth of Australia (Citation2009) Parliamentary Debates, House of Representatives, 25 November, 12786 (Jennifer Macklin); Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 13540 (Jennifer Macklin); Dworkin (Citation2013), p 30.

3 Thaler and Sunstein (Citation2009); Sunstein (Citation2013), pp 2, 4, 13–14.

4 Sunstein (Citation2013), pp 1–2, 4, 13; Standing (Citation2014a), p 97.

5 Thomas and Buckmaster (Citation2010), p 1.

6 Sunstein (Citation2013), pp 191–192.

7 Sunstein (Citation2013), pp 2, 5.

8 Sunstein (Citation2013), p 9.

9 Thaler and Sunstein (Citation2009), pp 3–4, 6; Standing (Citation2014a), pp 96–97.

10 Thaler and Sunstein (Citation2009), p 5.

11 Sunstein (Citation2013), pp 193–194, cf Scoccia (Citation2013), pp 74, 80.

12 Sunstein (Citation2013), p 193.

13 Sunstein and Thaler (Citation2003), pp 1159, 1166, 1177.

14 Young (Citation1990), p 59; Coons and Weber (Citation2013), pp 12–13.

15 Behrendt (Citation2003), pp 90, 93, 98–99; Moreton-Robinson (Citation2005), pp 61, 63, 65; Churchill (Citation2011), pp 540, 543; Venne (Citation2011), pp 557, 568, 573; Watson (Citation2011), p 508.

16 Bielefeld (Citation2012), pp 522–562; Bray et al (Citation2012), p 254.

17 ‘Priority needs’ are legislatively defined, Social Security (Administration) Act Citation1999 (Cth) s 123TH(1).

18 Social Security (Administration) Act Citation1999 (Cth) s 123TI(1).

19 Social Security (Administration) Act Citation1999 (Cth) s 123TI(2).

20 Thomas and Buckmaster (Citation2010), p 25.

21 Social Security and Other Legislation Amendment (Welfare Payment Reform) Act Citation2007 (Cth).

22 Northern Territory Government (Citation2007).

23 Commonwealth of Australia (Citation2007) Parliamentary Debates, House of Representatives, 6 (Malcolm Brough).

24 Commonwealth of Australia (Citation2007) Parliamentary Debates, House of Representatives, 2–4, 6 (Malcolm Brough).

25 Commonwealth of Australia (Citation2007) Parliamentary Debates, House of Representatives, 6 (Malcolm Brough).

26 Commonwealth of Australia (Citation2007) Parliamentary Debates, House of Representatives, 6 (Malcolm Brough).

27 Commonwealth of Australia (Citation2007) Parliamentary Debates, House of Representatives, 7 (Malcolm Brough).

28 Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act Citation2010 (Cth).

29 Social Security Legislation Amendment Act Citation2012 (Cth) Sch 1.

30 Letter from the United Nations to the Australian Government, http://www2.ohchr.org/english/bodies/cerd/docs/early_warning/Australia28092009.pdf, 28 September 2009.

31 Webb (Citation2008), p 18; Shaw and Martin (Citation2009).

32 Social Security and Other Legislation Amendment (Welfare Payment Reform) Act Citation2007 (Cth) ss 4(3), 6(3).

33 Commonwealth of Australia (Citation2009) Parliamentary Debates, House of Representatives, 12787 (Jennifer Macklin); Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act Citation2010 (Cth).

34 Bray et al (Citation2012), p 254.

35 Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act Citation2010 (Cth) s 25. The categories of ‘vulnerable welfare payment recipients’, ‘disengaged youth’, and ‘long term welfare payment recipients’ are defined in Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act Citation2010 (Cth) s 36. This has resulted in amendments to the Social Security (Administration) Act Citation1999 (Cth), for example, pursuant to s 123UC a person will fall under the compulsory income management regime if there is a child protection issue.

36 Australian Law Reform Commission (Citation2011), p 272.

37 Stronger Futures in the Northern Territory Act Citation2012 (Cth); Stronger Futures in the Northern Territory (Consequential and Transitional Provisions) Act Citation2012 (Cth); Social Security Legislation Amendment Act Citation2012 (Cth).

38 Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 13539 (Jennifer Macklin).

39 Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 13539 (Jennifer Macklin).

40 Bray et al (Citation2012), p 254; Parliamentary Joint Committee on Human Rights (Citation2013), pp 51–52.

41 Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 12787, 13543 (Jennifer Macklin).

42 Explanatory Memorandum to the Social Security Legislation Amendment Bill Citation2011, p 2.

43 Goldberg (Citation2002), p 104.

44 United Nations Declaration on the Rights of Indigenous Peoples Citation2007, Art 3; Watson (Citation1997), p 55; Mansell (Citation2007), p 80. The right of self-determination for Australia's First Peoples is discussed in Part III of this article. The author notes that some consider that the right to self-determination for Indigenous peoples should be extended to individuals as well as being a collective right, see for example the editorial note by Jumbunna Indigenous House of Learning preceding Altman (Citation2013), p iv. However, this position, whilst having much to commend it in terms of combating unwanted paternalism, is yet to be broadly adopted under international law.

45 Australia's adoption of new paternalism in the area of welfare policy supports this proposition about overseas influence. Mead (Citation1997), p 1; Thomas and Buckmaster (Citation2010), p 1.

46 Thaler and Sunstein (Citation2009), p 3.

47 Thaler and Sunstein (Citation2009), p 4.

48 Thaler and Sunstein (Citation2009), p 6. Guy Standing (Citation2014a, pp 96–97, 226–227, 242) critiques the concept of ‘choice architecture’ on a number of bases, including that Thaler and Sunstein ‘used Benthamite language, without attribution’ in regards to ‘Bentham's panopticon, an all seeing surveillance device initially designed for prisons that aimed to identify for punishment those “not making the right choice”’.

49 Thaler and Sunstein (Citation2009), p 5.

50 Including threats to due process, Standing (Citation2014a), pp 226–227.

51 Mansell (Citation2007), pp 73, 81.

52 United Nations Declaration on the Rights of Indigenous Peoples Article 3; Watson (Citation1997), p 55; Mansell (Citation2007), p 80. The right of self-determination for Australia's First Peoples is discussed in Part III of this article.

53 Parliamentary Joint Committee on Human Rights (Citation2013), pp 51–52, under the International Convention on the Elimination of All Forms of Racial Discrimination Citation1969, Art 1.

54 Parliamentary Joint Committee on Human Rights (Citation2013), p 60, under the International Covenant on Civil and Political Rights Citation1976, Art 17(1) and the International Covenant on Economic, Social and Cultural Rights Citation1976, Art 9.

55 Australian Indigenous Doctors’ Association and Centre for Health Equity Training (Citation2010), p 24.

56 Australian Indigenous Doctors’ Association and Centre for Health Equity Training (Citation2010), p 25.

57 Australian Indigenous Doctors’ Association and Centre for Health Equity Training (Citation2010), p 25.

58 Bray et al (Citation2012), pp 6, 192.

59 Harris (Citation2013a), p 4.

60 Harris (Citation2013a), p 33; Harris (Citation2013b), p 5.

61 Rollback the Intervention (Citation2012).

62 Said (Citation1994), p xviii.

63 Human Rights and Equal Opportunity Commission (Citation1997), p 32.

64 Cecil Cook quoted in Hollinsworth (Citation2006), p 106; Kidd (Citation1997), p 69.

65 Watson (Citation2009), p 48.

66 Watson (Citation2007b), pp 7–8.

67 Nicoll (Citation2012), p 183.

68 Rollback the Intervention (Citation2012).

69 Thaler and Sunstein (Citation2009), p 5.

70 Thaler and Sunstein (Citation2009), pp 5–6, cf Mitchell (Citation2004–2005), pp 1248, 1254; Standing (Citation2014a), p 242.

71 Altman (Citation2011), pp 191, 193–194.

72 ‘Financial exploitation’ is one of the criteria used to determine whether someone is affected by vulnerability under the Social Security (Administration) (Vulnerable Welfare Payment Recipient) Principles Citation2013 and the Social Security (Administration) (Exempt Welfare Payment Recipients – Persons with Dependent Children) (Indications of Financial Vulnerability) Principles Citation2010 made by the Minister in accordance with Social Security (Administration) Act Citation1999 (Cth) s 123UGA(2).

73 Commonwealth Ombudsman (Citation2012), p 30. The Principles referred to are the Social Security (Administration) (Vulnerable Welfare Payment Recipient) Principles Citation2010 made by the Minister in accordance with Social Security (Administration) Act Citation1999 (Cth) s 123UGA(2).

74 Michele Harris (Citation2013a), p 4.

75 Altman and Russell (Citation2012), p 17.

76 Thaler and Sunstein (Citation2009), p 238. See also Standing (Citation2014a), p 242.

77 Newcomb (Citation2011), pp 581, 584, 599.

78 Sunstein (Citation2013, p 196) does acknowledge, to some extent, the potential for there to be a problem of bias among public officials in his later work, although he suggests that concern about the executive government being influenced by powerful interest groups is overstated.

79 Bellamy (Citation2008), p 106.

80 Thaler and Sunstein (Citation2009), p 96.

81 Thaler and Sunstein (Citation2009), p 163.

82 Altman (Citation2012a), p xvi; Altman (Citation2012b), p 18.

83 Arabena (Citation2006), p 38; Altman and Hinkson (Citation2010), p 189.

84 Mackenzie (Citation2008), p 528.

85 Manderson (Citation2012), p 412; Bielefeld (Citation2014), p 15.

86 Thaler and Sunstein (Citation2009), p 40.

87 Ben-Ishai (Citation2012), p 2.

88 Mackenzie (Citation2008), p 530.

89 Mercer (Citation2003), pp 422–425, 429, 431, 434; Hollinsworth (Citation2006), p 100; Dodson and Cronin (Citation2011), p 195; Banivanua Mar (Citation2012), pp 189–191; Howard-Wagner (Citation2012), pp 226, 228; Anthony (Citation2013), pp 45, 46, 48.

90 Thomas and Buckmaster (Citation2010), p 17. Sunstein (Citation2013, p 71) later acknowledged that ‘public officials are human and they can err as well’. However, it is possible that governments may choose not to focus on this later theoretical modification to nudge paternalism, and instead prefer its earlier manifestation promulgated by Thaler and Sunstein (Citation2009).

91 Goldberg (Citation2002), pp 57–65, 68–70.

92 Mill (Citation1993), pp 14–15.

93 Watson (Citation2007a), p 107.

94 Thomas and Buckmaster (Citation2010), p 17. Also, the new paternalist's ideas about unsophisticated people needing paternalistic intervention (Thaler and Sunstein Citation2009, p 79).

95 Thaler and Sunstein (Citation2009), p 21.

96 Behrendt (Citation2007), p 18; Standing (Citation2014b), p 239.

97 Thaler and Sunstein (Citation2009), p 21.

98 Thaler and Sunstein (Citation2009), p 8.

99 Thaler and Sunstein (Citation2009), p 59. This was reiterated to some degree in Sunstein (Citation2013, p 138).

100 Watson (Citation1997), p 53; Arabena (Citation2006), p 38.

101 Patton and Ferguson (Citation1999), pp 82–86.

102 Hollinsworth (Citation2006), p 128.

103 Arabena (Citation2006), p 39.

104 Mitchell (Citation2004–2005), p 1268.

105 A proposition that is no longer plausible in a multicultural society (Goldberg Citation2002, p 266).

106 Goldberg (Citation2002), pp 31, 120.

107 Sunstein (Citation2013), pp 2, 4, 13, 14; Standing (Citation2014a), pp 97, 100, 242.

108 Thaler and Sunstein (Citation2009), p 6.

109 Social Security (Administration) Act Citation1999 (Cth) s 123TI(1).

110 Social Security (Administration) Act Citation1999 (Cth) s 123TI(2).

111 Bray et al (Citation2012), p 185.

112 Explanatory Memorandum to the Social Security Legislation Amendment Bill Citation2011, p 2; Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 13540 (Jennifer Macklin).

113 Bielefeld (Citation2013), p 19.

114 Bray et al (Citation2012), pp 91–92.

115 Altman and Hinkson (Citation2010), p 201; Bray et al (Citation2012), p 92.

116 Bray et al (Citation2012), p 92.

117 Thaler and Sunstein (Citation2009), p 146.

118 Bray et al (Citation2012), p 92.

119 Bray et al (Citation2012), p 93.

120 Bray et al (Citation2012), p 93.

121 Bray et al (Citation2012), p 93.

122 Social Security (Administration) Act Citation1999 (Cth) s 123UCB.

123 Social Security (Administration) Act Citation1999 (Cth) s 123UCC.

124 Social Security (Administration) Act Citation1999 (Cth) ss 123UGC, 123UGD.

125 Social Security (Administration) Act Citation1999 (Cth) s 123UGD(1)(d).

126 Commonwealth Ombudsman (Citation2012), pp 8–9.

127 Cox (Citation2011), p 69.

128 Gibson (Citation2010), pp 2–3; Australian Law Reform Commission (Citation2011), p 265.

129 Bray et al (Citation2012), p 254.

130 Australian Law Reform Commission (Citation2011), p 265.

131 National Welfare Rights Network, Submission CFV 150 in Australian Law Reform Commission (Citation2011), p 266.

132 Bray et al (Citation2012), p 114.

133 Bray et al (Citation2012), p 114.

134 Australian Law Reform Commission (Citation2011), p 266; Equality Rights Alliance (Citation2011), p 36; Bielefeld (Citation2012), p 549.

135 Billings and Cassimatis (Citation2010), p 67.

136 Billings and Cassimatis (Citation2010), p 67.

137 Kidd (Citation2006), Chapters 4–5; Gibson (Citation2009), pp 12–13, 18.

138 Thaler and Sunstein (Citation2009), p 12.

139 Australian Law Reform Commission (Citation2011), pp 271–272.

140 Made in two $250 payments for each 6 months, Australian National Audit Office (Citation2012–2013), p 14; Mendes et al (Citation2013), p 13.

141 Thaler and Sunstein (Citation2009), p 6.

142 Standing (Citation2014a), p 292.

143 Thaler and Sunstein (Citation2009), p 9.

144 Standing (Citation2014a), pp 100, 242.

145 Standing (Citation2014a), pp 97, 100, 242.

146 Rollback the Intervention (Citation2012).; Shaw (Citation2013).

147 Bray et al (Citation2012), p 92.

148 Bray et al (Citation2012), pp 91, 235, 265.

149 Gibson (Citation2009), p 28.

150 Centrelink customer service adviser quoted in Bray et al (Citation2012), p 94.

151 Thaler and Sunstein (Citation2009), pp 179–180.

152 Billings and Cassimatis (Citation2010), p 68.

153 Bray et al (Citation2012), p 257.

154 Mendes (Citation2013), p 495.

155 Bielefeld (Citation2013), p 19.

156 Thaler and Sunstein (Citation2009), p 79.

157 Commonwealth of Australia (Citation2009) Parliamentary Debates, House of Representatives, 12784 (Jennifer Macklin); Australian Government (Citation2011), p 21; Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 13540 (Jennifer Macklin); Farr (Citation2011).

158 Commonwealth of Australia (Citation2011) Parliamentary Debates, House of Representatives, 13540 (Jennifer Macklin).

159 Gibson (Citation2009) pp 12–13, 18; Australian Indigenous Doctors’ Association and Centre for Health Equity Training (Citation2010), p 25; Equality Rights Alliance (Citation2011), p 19.

160 Farr (Citation2011).

161 Australian Indigenous Doctors’ Association and Centre for Health Equity Training (Citation2010), p 25; Equality Rights Alliance (Citation2011), p 19.

162 Equality Rights Alliance (Citation2011), p 40.

163 Equality Rights Alliance (Citation2011), p 40.

164 Equality Rights Alliance (Citation2011), p 29.

165 Bray et al (Citation2012), p 267.

166 Bray et al (Citation2012), pp 86, 94–95.

167 Bray et al (Citation2012), p 94.

168 Bray et al (Citation2012), p 169.

169 Bray et al (Citation2012), p 94.

170 Bray et al (Citation2012), p 95.

171 Manton (Citation2010), p 25. At that time Bev Manton was the chair of the NSW Aboriginal Land Council, and had witnessed how income management was affecting Northern Territory Aboriginal welfare recipients.

172 Mackenzie (Citation2008), p 525.

173 Mackenzie (Citation2008), p 525.

174 Altman and Russell (Citation2012), pp 16–17.

175 Maddison (Citation2011), pp 73–74.

176 Spann (Citation2000), p 25.

177 Bielefeld (Citation2012), pp 524, 554.

178 Nicholson et al (Citation2009), pp 204, 219; Cox (Citation2011), p 98.

179 Altman (Citation2013), p 30.

180 Altman (Citation2013), p 40.

181 Mendes et al (Citation2013), p 30.

182 Mendes (Citation2013), p 495.

183 Australian Human Rights Commission (Citation2012), p 19.

184 Marston et al (Citation2010), pp x–xi; Moss (Citation2010), pp 129, 138.

185 Tangentyere Council Incorporated (Citation2012), p 14.

186 Arnhemland Progress Aboriginal Corporation, ‘APLA FOODCARD’ http://www.alpa.asn.au/pages/ALPA-FOODcard.html. Accessed 23 November 2014.

187 Arnhemland Progress Aboriginal Corporation, ‘APLA FOODCARD’ http://www.alpa.asn.au/pages/ALPA-FOODcard.html. Accessed 23 November 2014.

188 Mendes et al (Citation2013), pp 25, 29.

189 Behrendt (Citation2007), p 16; Brigg and Maddison (Citation2011), p 6; Mendes et al (Citation2013), pp 29–30.

190 Rollback the Intervention (Citation2012); Parliamentary Joint Committee on Human Rights (Citation2013), p 60.

191 Rollback the Intervention (Citation2012); Altman (Citation2013), p 102.

192 Mendes et al (Citation2013), p 29. Internal references omitted.

193 Mendes et al (Citation2013), p 29; Parliamentary Joint Committee on Human Rights (Citation2013), p 60.

194 Australian Council of Social Services, ‘Submission to Senate Community Affairs Legislation Committee: Inquiry in Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Bill 2009 and related Bills (2010) in Cox (Citation2011), pp 30–31; Vivian (Citation2010), p 62.

195 Bielefeld (Citation2012), p 542.

196 Department of Families, Housing, Community Services and Indigenous Affairs (Citation2011), p 7.

197 Gibson (Citation2009), pp 11–12, 16, 18; Annexure B – Bagot Community Darwin, NT Transcript of FHCSIA ‘Special Measures’ Consultations: ‘Future Directions for Northern Territory Emergency Response’ 28 July 2009 in Nicholson et al (Citation2009), pp 82, 86; Annexure D Arlparra/Utopia Northern Territory Transcript of FHCSIA ‘Special Measures’ Consultations: Future Directions for Northern Territory Emergency Response’ 13 August 2009 Part 1 in Nicholson et al (Citation2009), pp 172–173.

198 Australian Human Rights Commission (Citation2011), p 27.

199 Australian Human Rights Commission (Citation2011), p 27.

200 Australian Human Rights Commission (Citation2012), p 19. The last factor mentioned mirrors Article 19 of the United Nations Declaration on the Rights of Indigenous Peoples Citation2007.

201 Australian Institute of Aboriginal and Torres Strait Islander Studies (Citation2012), p 2.

202 Nicholson et al (Citation2012), pp 55, 105.

203 Behrendt (Citation2003), pp 90–92; Altman (Citation2013), p 102; Anthony (Citation2013), pp 1–209; Bielefeld (Citation2014), pp 16, 18.

204 Rollback the Intervention (Citation2012).

205 Brigg and Murphy (Citation2011), pp 28–29.

206 Bellear (Citation2013), p 4.

207 Brigg and Maddison (Citation2011), p 6.

208 Watson (Citation1997), p 55; Behrendt (Citation2001), p 856.

209 Mansell (Citation2007), p 80.

210 Bellear (Citation2013), p 5.

211 For the difference between this and the more robust rights set out in the Declaration of Principles (Indigenous Draft Principles) see Venne (Citation2011), pp 568–570; Churchill (Citation2011), p 538. Australia, along with Canada, New Zealand and the United States had initially voted against the UNDRIP. Although Australia later changed its position in 2009, Australia has not since sought to implement the terms of the UNDRIP in any meaningful way into domestic law.

212 Figures submitted to the federal parliament in February 2014 confirm that Indigenous peoples grossly outnumber non-Indigenous welfare recipients Australia-wide in the income management categories (Senate Estimates Citation2014, p 1).

213 Calma (Citation2007), p 284; Churchill (Citation2011), pp 540, 543; Venne (Citation2011), pp 568, 573; Watson (Citation2011), p 508.

214 Altman (Citation2012a), p xiv; Howard-Wagner (Citation2012), pp 234–236; Altman (Citation2013), pp 140.

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