Selective paternalism in Australian social security law

Changes to the regulation of consumer leases for people on welfare who use Centrepay deductions to make lease payments for household goods, are part of the federal government’s response to a 2016 review of small amount credit contract laws. The review and response do not propose expanding availability of no-interest loans as an alternative to small amount credit contract finance. In 2015, a Bill proposing to exclude consumer leases from Centrepay failed to pass, with opponents objecting to the Bill as paternalistic. Restrictions on consumer spending imposed since 2007 by income management legislation, however, have been supported as necessary paternalism. These conflicting approaches to the protection of people receiving social security benefits from self-harming consumer choices constitute selective paternalism, while failing to deliver financial autonomy and inclusion.