Budget doubles funding for financial counsellors

The increase in funding for financial counselling services the Government undertook as a temporary measure during the financial crisis has been made permanent. Close to A$6 million of funding that was introduced as a short-term measure was made a recurrent item in Tuesday's budget.

Financial Counselling Australia (formerly the Australian Financial Counselling and Credit Reform Association) said the funding went to 67 not-for-profit counselling services, including 12 that have been established since the financial crisis.

FCA's executive director, Fiona Guthrie, said funding for financial counselling was $2.5 million a year from 1993 to 2008. In the Rudd Government's first budget, funding was increased to $5 million.

Guthrie said the $6 million of new recurrent funding was in addition to the $5 million already in the budget.

"What this means is that counselling services can continue to operate, or increase services, in areas of high need, such as parts of western Sydney. There is unmet demand for services in a number of areas," she said.