Tuesday, 29 October 2024

Financial counselling

David ETTERSHANK (Western Metropolitan) (22:20): (1215) My adjournment matter is for the Minister for Consumer Affairs in the other place. On the first Tuesday in November many Victorians will ask themselves: do I feel lucky? I am not talking about a bet on the Melbourne Cup or a ticket in the office sweepstake. Victorians struggling to pay mortgages are desperately hoping they will see interest rates cut when the Reserve Bank next meets. Since 22 May interest rates have been pushed up by 4.25 per cent, pushing many homeowners to the brink of financial collapse. On average 2300 Victorians call the debt helpline every month. Demand for financial counselling has risen by 50 per cent. Not-for-profit organisations that deliver financial counselling are overwhelmed by demand, and many have had to close their books to new clients.

The Allan government has committed an additional $15 million to support the sector over the next three years, with the $3 million earmarked for not-for-profit organisations due to be delivered in the second half of this financial year. The problem is the department responsible for consumer affairs is behind schedule in assessing grant applications for the scheme. The second problem is that RMIT, the only institute that trains financial counsellors in person in Victoria, suspended its course last year because it could not find suitable placements for its students. The not-for-profit organisations that normally would have supervised these students have no capacity to do so because they are so stretched. Financial Counselling Victoria has a plan to alleviate this situation by taking on the coordination of financial counselling student placements in the same way that the Victorian Council of Social Service, VCOSS, coordinates community sector placements. This will see more financial counsellors completing their training and starting to fill the additional positions that the government is funding. So I ask: will the minister guarantee the promised $3 million will be delivered in January in line with the original departmental timelines, and will the minister consider funding Financial Counselling Victoria to run a student placement program similar to the VCOSS model?