House of Representatives

Second Reading Speech

Ms RISHWORTH (Kingston - Minister for Social Services)

I move:

That this bill be now read a second time.

Today I am introducing the first legislative requirement to abolish the cashless debit card - the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Bill 2022.

This bill delivers on the Albanese government's election commitment to abolish the cashless debit card and is the first product of ongoing and sincere consultation with many communities around the country.

The cashless debit card has been operating across Australia for six years.

The former government introduced the card in Ceduna in 2016 but over time it was expanded to the East Kimberley, Goldfields, Bundaberg and Hervey Bay areas, and most recently - the Northern Territory and Cape York.

The former government claimed the card would help to address some adverse behaviours relating to drug and alcohol misuse in communities, by quarantining a proportion of a person's income support.

Despite this·intention, there has never been evidence to show that the cashless debit card is delivering on this objective.

Numerous evaluations, inquiries and audits have never rendered clear, unequivocal data that demonstrated the card was working.

Just last month, the Australian National Audit Office released its latest audit on the performance of the cashless debit card, highlighting once more the lack of evidence available to demonstrate any success of the card. There were no key performance indicators, evidence or evaluation conducted to support the former government's scheme - and despite this message being delivered not once but twice by the ANAO, first in its report in 2018 and second in its report in 2022, the former government just refused to listen.

Service providers on the front line of helping those who interact with the card have been scathing about its existence.

St Vincent de Paul said the card had 'unintended and expensive consequences across government and the community, including social exclusion and stigmatisation, increased financial hardship, and the erosion of individual autonomy and dignity'.

In a policy briefing back in 2019, the group said, 'Ultimately, this is a punitive and paternalistic measure that is driven by ideology rather than evidence.'

Put simply, the cashless debit card is not delivering on its long promised outcomes. And no-one is buying it anymore - certainly not this government.

My recent consultations in Ceduna and the East Kimberley region have only reinforced the findings and views of others - as have visits to Bundaberg and Hervey Bay by my colleague the Assistant Minister for Social Services, who heard similar feedback.

I've personally been told of the tragic stories relating to the inadequacy of the cashless debit card. Stories in communities like Kununurra in the East Kimberley region where the introduction of the cashless debit card has not stopped alcohol misuse and instead encouraged workarounds which have made people worse off overall, with less money in their pockets.

We have listened to First Nations community leaders, service providers and cashless debit card participants in these communities.

And many have told us that the CDC card stigmatises them and makes their lives more difficult because they cannot access the cash economy.

In some cases it's even blocked the rent payments of users, making housing stability an extra issue they've had to face.

Users also described to me the shame and anguish the card brings - it makes them feel like they are being punished for being on welfare.

Today, our government is saying enough is enough - we are calling time on the cashless debit card.

There is a better way. And that is why the Prime Minister said removing the card would be central to his priority agenda if we were elected to government.

We are moving decisively to abolish the CDC in the first week of the new parliament.

And we're doing this in a considered and deliberate manner.

It is critical that the transition away from the cashless debit card is smooth, and people and communities continue to have access to supports that they need.

And that is exactly what this bill - transitioning participants off the card - will do.

The bill will:

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Remove the ability for any new entrants to be put on the card;

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Enable the more than 17,000 existing cashless debit card participants to be progressively transitioned off the card as soon as the bill receives royal assent, which we aim to have occur in the next sitting period, in September, allowing for participants to regain the financial freedom they've been asking for;

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Enable the Family Responsibilities Commission to continue to support their community members by placing them onto income management where the need exists;

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Allows for me to determine, following further consultation with First Nations people and my colleagues, how the Northern Territory participants on the CDC will transition, and the income management arrangements that will exist; and

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Finally, it will allow for the repeal of the cashless debit card on a day to be fixed by proclamation or a maximum of six months after royal assent - allowing for the necessary time to support a staged transition off the card. It will also make consequential amendments to a number of other acts and effectively removes CDC from all social services 1egislation.

Our absolute priority is to ensure participants are supported through their transition off the card in a safe and structured way.

This will be done through extensive communication and an outreach strategy so that participants are well informed about the changes and what it means for them.

Information and education sessions will be held in each cashless debit card site over the transition period with culturally appropriate information and support.

Services Australia will conduct individually targeted transitional support interviews for those who need it, or want this additional assistance, to make sure exiting participants are well informed on the options available to them. Not everyone will need this level of assistance - but this approach will ensure no-one is left behind due to being forced onto this card by the former government.

As a government we will deliver on our positive, clear plan for a future for our country guided by two fundamental principles:

No-one left behind - always ensuring that we are looking our for the most disadvantaged and vulnerable in our country.

And no-one held back - because we should always support aspiration and opportunity.

I want to be clear on two points. Firstly, there is no requirement after this bill passes for a CDC participant to prove anything in order to move off the card. This is a source of deep concern for many people - that currently an enormous amount of information - very private information - has to be given to Services Australia. I have to reiterate that. There will be no requirement for CDC participants, once this bill is passed, to prove anything to move off the card. Secondly, every CDC participant will be transitioned off the card once this bill passes the parliament, and the CDC will be abolished - it will no longer exist. The engagement with Services Australia is to ensure that people have the right support they need to assist them with their transition.

Where participants require continued assistance with budgeting, transferring direct debits from the cashless debit card or referrals to further support services, there will be help available, including the option for voluntary income management if they choose.

This bill is not only the first step in the transition journey away from the cashless debit card, but it is a significant milestone in in the reform of cashless welfare in Australia.

Any measure we put in place as a government we want to ensure will help the people we are assisting.

Welfare and income support should not be seen as punitive but should always return to our core principles of no-one being left behind.

As a Labor government, our government will aim to support the most vulnerable in our community and through income support, education, health, public housing and child care we will make Australia a better place than when we came into government.

Extensive community consultation will continue on the broader question of income management, to explore the future of this and other supports that are needed in communities in line with our core principles.

I would like to take this opportunity to thank all those community leaders who have met with me, who have spoken with me, who have given their time to express their opinions. I have listened to you and I will continue to listen to you as we move forward and make sure we work together to ensure that you have the support you need.

We will continue consulting, and listening to, a wide range of stakeholders, including our First Nations leaders, women's groups, service providers, communities and - importantly - those people receiving income support.

These diverse perspective on local needs will strongly inform our next steps. Consultation is central to everything we will do as a government. We want to ensure changes or measures we implement are actually helping.

Our focus and our objective as a government remains clear - to empower people and communities, and provide individuals in need with a range of supports that they can choose to use when, how and in a way that suits them.

I commend the bill to the House.

Debate adjourned.