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Katherine women strive for financial independence as new SmartCard launched

Suzie Andrews has helped launch a gift shop in Katherine with the Banatjarl Strongbala Wimun Grup. (ABC News: Samantha Dick)

Suzie Andrews is among a group of women, from Katherine in the Northern Territory, who are reducing their reliance on welfare as the federal government moves to introduce a new income management scheme.

She's quick to share the benefits of bush medicine for sensitive skin, hand out a free sample and give a lesson on her botanicals.

"It's that good feeling that you have inside," Ms Andrews said. 

"Once you sell a product, you know that people are wanting more."

Ms Andrews has helped create the Banatjarl Strongbala Wimun Grup's first gift shop. 

Led by elders, the group runs cultural camps, bush tours and workshops to share their culture and achieve financial independence. 

Ms Andrews says bush medicine is known for its natural healing properties. (ABC News: Samantha Dick)

It's a notable achievement in the Northern Territory, where about 24,000 people are bound by the Basics Card, a form of compulsory income management.

That's about one in 11 Territorians. 

Manyallaluk resident Rachael Kendino said the work meant she no longer had to rely on the card in her remote community, north-east of Katherine.

Rachael Kendino says she enjoys supporting young people. (ABC News: Samantha Dick)

"I wanted to do something more to improve my life, and help myself and my family," she said. 

The women’s gift shop is helping to upskill young workers such as Aaliyah Brown.  (ABC News: Samantha Dick)

Ms Kendino helps reconnect troubled youth to their families and culture.

"It made so much difference for me when I started working and making decisions, and being a role model to the younger people," she said. 

"When I got my first pay I was really happy and I enjoyed it.

"I tried out some food I didn't eat before ... at a Chinese restaurant as a celebration."

Income management

Introduced during the NT Intervention in 2007, the Basics Card restricts half of a person's welfare payments in an attempt to prevent them from spending the money on things such as gambling, drugs or alcohol.

The federal government is moving to introduce its new "enhanced income management" program across Australia after abolishing the cashless debit card last year.

Labor's new SmartCard will allow users to shop online, use pay pass at check-outs and buy products from a wider range of shops.

It's an update on outdated Basics Card, which can only be used at government-approved business and does not allow for online grocery shopping, nor other essentials such as pre-paid electricity metres.

Some users have criticised the Basics Card for being overly restrictive.  (ABC News: Samantha Dick)

Arnhem Land Progress Aboriginal Corporation chief executive Alastair King said the SmartCard was essentially an upgraded version of the same system. 

"At the end of the day, it's still compulsory income management," he said.

Mr King said the corporation's position remained that all income management should be voluntary under a scheme where users could opt-in.

"The government promised to get rid of the cashless debit card and they've done that, so they kept that promise," he said.

"But there was also an implied promise to phase out compulsory income management."

Mr King said many Territorians circumvented the limitations of the Basics Card by purchasing vouchers, then selling them at a discount price for cash to buy alcohol or cigarettes. 

"People work their way around it," he said. 

"They have done pretty much since the day income management came out."

Card provides 'choice, certainty'

Labor has previously indicated hopes to one day move NT welfare recipients off compulsory income management altogether.

Only a few thousand former cashless debit card users have been moved onto the SmartCard so far in the NT.

The vast majority of welfare recipients will remain on the Basics Card for now, while the federal government conducts consultation over the future of income management in the NT.

Amanda Rishworth says the new SmartCard system will give eligible welfare recipients more choice. (ABC News: Matt Roberts)

Federal Social Services Minister Amanda Rishworth said the government had followed through on its promise to "abolish the mandatory cashless debit card program".

"We've delivered a long term and fully funded plan to ensure certainty, choice and support to communities moving off the CDC program," she said.

"In the Northern Territory, all participants of the cashless debit card program have been transitioned to the SmartCard which provides choice and certainty for those on income management."

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