General Finance Information

An excellent resource titled "Understanding Money in Australia" has been created by the Migrant Information Centre (East Melbourne). It is available to download in pdf format in Dinka, English, Nuer, and Sudanese Arabic. This resource gives basic information about: borrowing money, buying a car, paying utility bills, using direct debit and Centrepay.

The Migrant Information Centre has also created a document giving advice about using Automatic Teller Machines (ATMs). It explains how to use the machines and about the fees and charges that are often charged. Available in Dinka, English, Nuer and Sudanese Arabic.

Budgeting tools

Working out a budget can help determine whether there is enough income to cover the expenses. This can be helpful if there is: a change in circumstances such as changed rental payments; a debt to be repaid; or if there is a repeated shortfall.
Centrelink's " Fortnightly Savings Planner" can be obtained over the counter or downloaded
Child Support Agency has a useful online calculator,

Case study:
Hanna's is a widow, incharge of her family's finances for the first time. She had difficulty keeping track of bills. Her support person gave her a plastic display book to put the bills in. Each utility company had a pocket. Hanna kept her copy of the Centrelink "Fortnightly Savings Planner" in the back. Hanna arranged for most of her bills to be paid fortnightly using Centrepay, she also paid her rent fortnightly, this way Hanna always knew how much money she had left for her other expenses. Every twelve months, (or sooner if there is a change in her circumstances) Hanna visits the financial advisor at the Community Health Centre who with the use of an interpreter helps her review her "Fortnightly Savings Planner". Hanna feels she has it mostly under control now and when she had to find new rental accomodation recently she had a good idea how much she could afford.

Managing Electricity, Gas and Water

If a family has lived for some time in a refugee camp or lived in a rural situation prior to arriving in Australia, they are unlikely to have had past experience with the services provided by utility companies. This inexperience often results in their quickly becoming indebted to utility companies. A little education about budgeting and how to navigate the automated switchboards these companies are reknown for can help greatly. All utility companies in Australia are required to allow customers to access their services through the use of a telephone interpreter. In Victoria

Make sure that the utility has the details of the Health Care Card registered in order to obtain the discount. In the initial 1-2 years after arrival it is sometimes necessary to speak with a utility company on behalf of a refugee. In order to facilitate this the account holder must first provide written notification to the utility company granting them authority to act on their behalf in relation to the account.

Most utility companies participate in an arrangement with Centrelink called Centrepay. When someone elects to use Centrepay an averaged amount is estimated and then deducted from the Centerlink payment each fortnight. This amount is then paid to the utility so that the bills are covered over the course of a year. The customer then does not have to pay anything further when a bill comes, unless the estimate becomes insufficient to cover the usage, and the utility company seeks to alter the amount. Centrepay is preferable to direct debiting because the money is taken out before the Centerlink payment is made to the bank account, meaning there is no risk of being charged fees by the bank if there is not enough money in your account when the direct debit is made.

It is also helpful to make sure that when someone changes address, they understand the need to arrange for final meter readings and connection at the new address.

Phone Services

Many people use prepaid mobile phone services; whilst these are expensive they do mean that the person is contactable, especially if the phone is not connected at home. As there is no line of credit the person will not have unexpected bills.

Phone companies offer many different plans. Be aware that sometimes phone companies will try and sell a plan to a customer that has more services and is consequently more expensive than they may need. This applies to both fixed line and mobile phone accounts.

Always request that bills come monthly. If there is difficulty in paying the bill by the due date ring the company and ask for an extension of time to pay. If you ask for an extension then you will avoid receiving a late payment fine.

<>Case study:
After having the home phone connected for one month the first bill arrived at Eli's house. It was much more than he expected and he could not afford to pay it. He waited until the next pension day and then paid some of the bill. Unfortunately though, the phone was disconnected the day before. He then had to pay a late payment fee and a reconnection fee as well as the previous amount.

To make matters worse when he rang the company to reconnect the phone a salesperson sold him a more expensive plan and the next phone bill was even more than the previous one.

Next time Eli couldn't pay the bill on time he rang the utility and asked for an extension. There was no late payment fee, and the phone stayed connected.

Telstra only allows Centrepay arrangements in some instances, check with them first - it is best to speak with someone in the accounts department.

Affordable fixed line services through Telstra

Incontact

Incontact is a limited service available through Telstra which is free. The customer can receive calls normally but can only make calls to 1800 numbers, 000, and calls to Telstra. Outgoing calls to other numbers can be made using a prepaid phone cards (the kind you see advertised on posters in newsagency windows) calls within Australia usually cost 2 - 3* cents per minute. The benefit of this service is that it allows the person to be contacted by others easily.

Incontact can be connected while a debt with Telstra is being paid off.

Budget Homeline

Budget Homeline costs $19.95* line rental/month and 30c/call*. It is good if there are not many calls made. Note that on request the service can be restricted to prevent calls to mobiles, STD or ISD calls which often are the cause of unexpectedly large bills.

* check costs with the provider as rates do change from time to time.

Financial Counsellors:

Free financial counselling services can often be accessed through local community health centres, Migrant Resource Centres, or Centerlink. A financial counsellor can help make arrangements with centrepay, make a budget, and assist with arranging payment plans when a debt needs repaying over time.

Loans through Australian Lutheran World Service:

ALWS adminsters three different kinds of loans for refugees:

1. Loans to help newly arrived refugees and displaced peoples to resettle in Australia (max $600)
2. Loans for airfares to help reunite families (max $3,000)
3. Loans to assist refugees to start small businesses in Australia (max $6,000)

To find out more contact ALWS on (02) 6021 5329 or visit their web site for more information

Definitions / References

Centrepay: http://www.centrelink.gov.au/internet/internet.nsf/services/centrepay.htm

Contact: Tiffany Westphal
Last Updated: 1-June-2007