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The federal government has announced a new industry-funded model for financial counselling services through Financial Counselling Australia.
It follows recommendations made following the Sylvan Review and Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Those reviews found funding was the largest impediment to Australians in financial hardship being able to access financial counselling.
Social Services Minister Amanda Rishworth says the model, which will facilitate 9,000 more face-to-face sessions and an extra 17,000 calls through the National Debt Helpline, is a "world-first".
"We know that many Australians, through no fault of their own, end up in financial difficulty. And this model, through the contributions made through a range of different industries - including the energy industry, the insurance council, Australian Banking Association, online wagering, have made a significant contribution to this model and it will help deliver services."
The industries that have signed up so far include the Australian Banking Association, Energy and Insurance Councils, as well as key bodies from the gambling and telecommunications industries, and buy, now pay later company Afterpay.
Alexandra Kelly is Director of Casework at the New South Wales-based Financial Rights Legal Centre, which provides financial counselling across Australia.
She welcomes the commitment by companies to give back to customers who access financial counselling on a daily basis.
"Daily. Daily, on the the national debt helpline you're looking at Afterpay either being a contributing factor, or the straw that broke the camel's back. Unfortunately, gambling is also quite prevalent. For many, they do require not only financial counselling assistance but also gambling intervention services."
Afterpay's role in contributing to financial pressure for Australians remains controversial.
In October, Financial Counselling Australia criticised the company's new Afterpay Plus subscription service, which allows customers to borrow money through their card or phone, even in shops that don't support Afterpay.
FCA Acting CEO Peter Gartlan says companies who have backed the announcement will not be "let off the hook" if they engage in practices that are predatory, unlawful or subject to regulator investigation.
"Our sector continues to report any instances of behaviour that is not in the best interest of the people that we are there to support and advocate for, so I don't know if it's a question of being hypocritical, but I think at least is an acknowledgment that [they] actually benefit when they do have a financial counsellor acting behalf of one of their customers."
Mr Gartlan says with interest rates and cost of living pressures leading to an additional 25,000 calls to helplines this year, and regional services overstretched, the funding will go a long way.
"We estimated that we needed an extra $18.1 million dollars a year. The announcement of the $30 million is over three years, so it's probably half of what we'd like, but look it's a really good start. It will mean that there'll be an extra at least 75 positions employed around the country each year to assist people."
But concerns remain that financial counselling is a sticking plaster for serious underlying conditions.
Senator Janet Rice, Greens Spokeswoman for Gambling Reform, says the party welcomes additional funding for financial counsellors, but the government needs to do more to directly address gambling harms.
"We are calling on the government to be actually tackling the core of the problem, rather than just funding the symptoms. We know that gambling should be managed on a harm minimisation approach, but the government's unwilling to do that because of pressure from the gambling industry. I mean the industry give millions of dollars in donations for Labor, Liberal and the National parties, they pay for lavish lunches and dinners for the minister who's meant to be regulating them."
Luke Lindsay is a General Manager at Uniting Care Queensland, which operates the National Debt Helpline and Lifeline in the state.
He says irrespective of systemic issues, the funding will help Australians at what he says is one of the most anxiety-inducing periods - when people reach out for support for the first time.
"One of the worst things is that when somebody reaches out for help to access those supports, and those supports aren't there, they aren't available or there's an excessive wait-list for those supports, so increasing the resources to make supports more accessible for people is only going to have a beneficial impact on those people who are really reaching out and seeking that support."
Those requiring financial counselling can ring the National Debt Helpline on 1800 007 007.
