‘We know the problem is there, we know it’s a societal problem, it’s one we’re dealing with’: Spike in alcohol, drug abuse and gambling linked to extra money

EXTRA stimulus payments and early access to superannuation have been linked to massive spikes in alcohol abuse, gambling and drug use among Indigenous Territorians, according to documents obtained through Freedom of Information

EXTRA stimulus payments and early access to superannuation have been linked to massive spikes in alcohol abuse, gambling and drug use among Indigenous Territorians.

Documents obtained under Freedom of Information also reveal Aboriginal people have been preyed upon by loan sharks and ripped off by phone sellers after rushing to access their super during the coronavirus pandemic.

The documents show remote Centrelink offices struggled to manage demand as Aboriginal Territorians sought to access superannuation.

They reveal:

• The influx of funds led to an increase in alcohol in the community;

• Some people resigned from their jobs to access their superannuation;

• The influx of welfare payments and superannuation had a big impact on school attendance.

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Police and service providers say there has been a direct link between the increased welfare payments and a spike in alcohol-related assaults and domestic violence across the Territory’s major centres.

“We’ve seen quite distinct rises,” Police Commissioner Jamie Chalker said.

“Unfortunately, what we do attribute that to is the increase of money that’s been available.”

Briefs sent to Minister for Indigenous Australians Ken Wyatt show the extra payments sparked an initial rise in spending at remote community stores.

Sales at some stores tripled while biosecurity zones were in place with large increases in the sale of whitegoods and several stores running out of flour.

But the documents describe this as “the only clear good news story”.

“A trend of unintended consequences in some communities has emerged, with increased expenditure on items such as drugs and alcohol and gambling,” one of the briefs says.

“There is also high demand for early access to superannuation for large discretionary purchases.”

Briefs sent to Minister for indigenous Australians Ken Wyatt show the extra payments sparked an initial rise in spending at remote communities. Picture: NCA NewsWire / Gary Ramage

Community leaders say the problems increased after the biosecurity zones were lifted on June 5 last year and people shifted to major centres.

Police have reported huge increases in domestic violence and alcohol-fuelled assaults in Alice Springs, Tennant Creek, Katherine and Darwin in the past 12 months.

Domestic violence incidents in Alice Springs rose 32 per cent while alcohol-related assaults in Tennant Creek were up 54 per cent.

Codes 4 Life program manager Michael Liddle said the extra stimulus payments had contributed to social problems in Alice Springs, where dozens of young children could be seen wandering the streets at night without adult supervision.

Police Commissioner Jamie Chalker said there has been a direct link between the increased welfare payments and a spike in alcohol-related assaults and domestic violence. Picture GLENN CAMPBELL

“The reason for the increased youth crime is because of the increased alcohol consumption by the parents and that could be drawn straight from the increased Centrelink payments,” he said.

Mr Chalker said the increase in alcohol consumption – driven by the extra money – was a major factor behind the rise in the number of children on the streets.

“We know the problem is there, we know it’s a societal problem, it’s one we’re dealing with but unfortunately we know that alcohol is … causing that violence and then that level of apprehension that the kids say, ‘well, I’m not staying home, I’m going to go into town,” he said.

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Mission Australia Regional Leader Michael Soler said his organisation had seen huge increases in the number of people accessing its sobering-up shelter in Darwin.

“On average we would usually see around 900 to 1000 presentations for the month,” he said.

“For the month of January we’ve seen over 1200 and for the month of February we’re already on track to surpass that.”

Mr Liddle said more needed to be done to provide financial literacy skill for Aboriginal Territorians.

“Aboriginal people just saw it as a top up in their wage. They don’t really know where it’s come from but I’m gonna spend it, and I’m spending it on alcohol.”

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