Compulsory Income Management under the Stronger Futures Laws – Providing “Flexibility” or Overturning Freedom of Contract?

Whilst income management has been heralded by the government as providing 'greater choice and flexibility' for welfare recipients, the scheme significantly erodes freedom of contract for those subject to it. The doctrine of freedom of contract maintains that consumers are to have freedom to enter into contracts for goods and services of their own choice with merchants of their own choice. The implementation of compulsory income management impedes the contractual freedom of those who are subject to it. Firstly, by prescribing a specified range of goods as 'priority needs', limiting the type of goods that may be purchased by welfare recipients due to the significant proportion of their income that is subject to income management. Secondly, these measures ensure that those subject to compulsory income management are no longer free to enter into whatever contractual agreements they wish.