Introduction
Commonwealth Financial Counselling is a service strategy under the Australian Government's Financial Management Program.
The Financial Management Program aims to build financial resilience and wellbeing for vulnerable people and those most at risk of financial and social exclusion and disadvantage.
Commonwealth Financial Counselling services are delivered by community and local government organisations and help people in personal financial difficulty to address their financial problems and make informed choices. Services may include direct casework (e.g. provision of advice and information); advocacy and/or negotiation; referral; and community education. Circumstances that can lead to personal financial difficulty include unemployment, sickness, credit over-commitment and family breakdown.
Commonwealth Financial Counselling commenced in 1990. Originally administered by the Attorney-General's Department, the initiative was subsequently managed in the Department of Industry, Science and Tourism and the Department of the Treasury, before moving to the Department of Family and Community Services in late 1999.
How a Financial Counsellor Can Help
Here are some examples of how financial counsellors can assist people who are experiencing personal financial difficulties
Negotiations
If someone has a loan, mortgage or credit card and is having difficulty maintaining repayments, a financial counsellor can assist in negotiating with creditors to reach an acceptable agreement.
Advocacy
Where a person feels overwhelmed by a personal financial problem, and would like help in effectively communicating with government or non-government organisations, a financial counsellor can advocate on their behalf.
Bills
If someone can't pay an outstanding bill, a financial counsellor can help them look at their options and explain what they can do.
Debt Recovery
Where a person has received a letter of demand, a summons, a warrant of execution or a judgement summons and is not sure what to do next, a financial counsellor can explain the debt recovery process and assist them to take the appropriate course of action.
Budgeting
If someone is having difficulties making ends meet, a financial counsellor can assist them to develop a budgeting plan to suit their circumstances, and help them gain financial management skills that will enable them to take control of their finances.
Bankruptcy
A financial counsellor can give information on bankruptcy and can also assist people to explore alternatives.
Organisations Providing CFC Services
In 2011-12, nearly 100 community and local government organisations are receiving funding totalling around $15.3 million to deliver Commonwealth Financial Counselling across Australia.
In addition to face-to-face services, financial counselling services can be accessed through a national telephone service on 1800 007 007.
Most Commonwealth Financial Counselling organisations are funded to provide free financial counselling services for people in financial difficulty; with a small number of organisations funded to provide resource support services to financial counselling organisations and their financial counsellors.
Other Financial Counselling Services
Financial counselling services in Australia are also funded by state and territory governments and community organisations.
The Department of Agriculture, Fisheries and Forestry provides funds for the Rural Financial Counselling Service Program.
Financial Information Services
Financial Information Service (FIS)
Centrelink's Financial Information Service (FIS) is an education and information service available to everyone in the community. FIS helps people make informed decisions about investment and financial issues for their current and future financial needs. FIS is independent, free and confidential and provides services by phone, personal interview and through seminars.
National Information Centre on Retirement Investments (NICRI)
The National Information Centre on Retirement Investments (NICRI) is an independent body funded by the Australian Government to provide the public with free and independent information on planning and saving for retirement, on the nature of investment options and on effective use of financial resources in retirement.
Other Links