‘There is a car-buying frenzy taking place’: Freedom of Information documents reveal superannuation spending spree on cars

EARLY access to superannuation sparked a “car buying frenzy” in the NT, with the spree linked to increased grog running according to documents obtained under Freedom of Information

EARLY access to superannuation sparked a “car buying frenzy” in the Northern Territory with the spending spree linked to increased grog running.

Documents released under Freedom of Information show concerns were raised about Aboriginal people being ripped off as they emptied their superannuation accounts to buy used cars.

“There is a car-buying frenzy taking place,” a brief sent to Indigenous Australians Minister Ken Wyatt warns.

“Funds associated with the release of superannuation money is being used to purchase cheap and overpriced cars.”

MORE TOP NEWS

Disgraced Labor MLA reopens electorate office after hiatus

NAMED: A list of Territory sex offenders

‘Incredibly concerning’ school fight pages reported to NT Police

Police Commissioner Jamie Chalker said the sales led to a “high level of mobility” among Aboriginal Territorians.

This saw more people coming to major centres in search of alcohol, and an increase in grog runners heading to remote communities where people had more cash to purchase black-market booze.

Mr Chalker said police noticed a distinct change in the type of alcohol being consumed.

Police Commissioner Jamie Chalker said the sales led a high level of mobility. Picture: Che Chorley

“Whereas historically we were probably going to see wine and beer, we’ve seen a marked move towards spirits, particularly Bundaberg Rum and the like going out to communities,’ he said.

“We feel that there’s a distinct association with that and the increase in harm that’s followed.

“At some communities it was upwards of $800 to $900 for a bottle of rum so you could see that for those interested in a secondary supply market, and seizing an opportunity out of misery, that was taken.”

Community leaders in Central Australia said they had noticed an increase in the number of cars left abandoned on the side of the road.

The NT News was told of one case where a man from Hermannsburg accessed all of his super, purchased a car online from a dealer in Sydney and had it freighted to Alice Springs.

The day after it arrived it broke down.

HOT NEW DEAL: Read everything for 28 days for just $1

Codes 4 Life program director Michael Liddle said used car dealers had taken advantage of Aboriginal people with poor financial literacy skills.

“The white man’s no fool, he knows how to get his money,” he said.

“Put a flash sign up, ‘I got a good car for you here’, but that car’s got to travel from point A to point B and that road from point A to point B has got corrugation that thick. Two days’ travel that car’s gone now.”

Follow @mattcunningham