Stuart Robert (Fadden, Liberal Party, Minister for the National Disability Insurance Scheme) Share this | Hansard source

I thank all of those who have contributed to the debate on the Social Security (Administration) Amendment (Income Management to Cashless Debit Card Transition) Bill 2019. The bill is a critical part of the government's ongoing commitment to an effective welfare system that not only provides a strong safety net for Australians but also ensures that all Australians take up their responsibilities and make a contribution to our community. I table a replacement explanatory memorandum.

By reducing the amount of cash available in the community, the cashless debit card is reducing the overall harm caused by welfare fuelled alcohol, gambling and drug misuse. The bill provides for the continuation of the cashless debit card trial for a further 12 months, until 30 June 2021; provides certainty for participants, communities, stakeholders and leaders, who know that the support of the cashless debit card will continue and the positive results of the cashless debit card can continue; and ensures that the positive impacts of the cashless debit card can be monitored and assessed. It also provides for the transition to the cashless debit card of income management participants in the Northern Territory and Cape York in Queensland. The government will work with income management participants, communities and stakeholders to support the transition from April 2020 and will transition participants progressively to ensure appropriate support can be provided. The bill ensures that welfare recipients in the Northern Territory and Cape York in Queensland have access to the best technology and the best process for welfare quarantining.

I'll also move some amendments to the bill that respond to issues raised in and by the Scrutiny of Bills and community affairs committees. These amendments will change the ministerial power to vary the restriction rate of community in the Northern Territory. This was originally included in the bill to replicate a power introduced by Labor in 2010 and currently exists under income management. In response to feedback from the committee, the government has amended Labor's 2010 powers and reduced the scope of the ministerial power to vary the restriction rate to a maximum of 80 per cent, in line with the cashless debit card, removing the trigger for age pensioners to be compulsory cashless debit card participants except in Cape York. The Family Responsibilities Commission in Cape York have explicitly asked to retain the power to refer pensioners to welfare quarantining measures.

Tidying up the process of voluntary income management participants to exit income management and re-volunteer for the cashless debit card will mean the process to transfer around 2½ thousand existing voluntary income management participants to the CDC will be streamlined. The CDC program is delivering significant benefits for the communities where it currently operates. The program has the objective of reducing immediate hardship and deprivation, reducing violence and harm, encouraging socially responsible behaviour and reducing the likelihood that welfare recipients will remain on welfare and out of the workforce for extended periods.

The government thanks community leaders it has worked with and will continue to work with for the implementation of the cashless debit card. We acknowledge their courage and leadership to assist members of their communities to break the cycle of welfare dependency, improve social outcomes and support people in the implementation. I commend the bill to the House.

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