Prime Minister Kevin Rudd says welfare reforms in the Northern Territory mean that income management will apply to all welfare-dependent communities, not just indigenous ones.
The PM said families with a history of welfare dependence lack strong incentive to break the cycle, and the reforms would target those in need of financial structure and protection.
He said the aim of the programme was to ensure that a larger portion of welfare payments was spent on food, and less on aclohol and drugs.
Minister for Families and Indigenous Affairs Jenny Macklin said the NT reforms would be evaluated at the end of 2011, and might be extended to other parts of Australia.
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