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Money doesn’t grow on trees

Sara Hudson | 19 March 2010

Opposition Leader Tony Abbott’s decision to support Indigenous Affairs Minister Jenny Macklin’s income management bill signals a much-needed change in attitudes to welfare in Australia.

When I was young, my mother would often say, ‘money doesn’t go on trees’ in response to my pleas for her to buy me something. Today, when I tell my own children that I can’t afford to buy them something, their response is, ‘So why don’t you use your credit card?’ Teaching children that there isn’t an endless supply of money from a hole in the wall or a plastic card is one of the tasks of parenthood.

By the time they leave home, even if children haven’t quite grasped the fact that money is something you have to earn, they soon do. Generally, most people wake up to the painful reality of working for a living and the effort required to earn their dollars.

However, it’s a different story for those who have never had the experience of working. It’s a sad reality, but the more the government gives without expecting anything in return, the more people tend to expect that the government will meet their every need. Many develop a strong sense of entitlement about what the government ‘owes’ them – and the sense of individual responsibility weakens and dies.

Macklin’s decision to extend income management across the entire Northern Territory, regardless of ethnicity, and eventually on a national basis to individuals who meet certain criteria, is a good one. There needs to be a differentiation between money earned and money received from the government. If people have less freedom regarding how they can spend their welfare payments, then maybe it will make them think harder about the advantages of working.

For those who haven’t learned the skills of budgeting, income management ensures that at least some of the welfare payment goes towards essential needs – like food for their kids. Unfortunately, too many children in Australia know what it means when their mum says she hasn’t got any money – waiting until dole day to get a decent feed. Sure, income management is paternalistic – but in this case, it’s a necessary evil.

Tackling the insidious effects of passive welfare requires some ‘tough love.’

Sara Hudson is a Policy Analyst at The Centre for Independent Studies