Louise Miller-Frost (Boothby, Australian Labor Party) Share this | Hansard source

Today I rise to speak in support of the Social Security (Administration) Amendment (Income Management Reform) Bill 2023. This bill is the next step the Albanese government is taking to reform the previous government's failed income management program. I've been fascinated to sit here for a little while and hear some of the arguments we've heard from the other side. On the one hand we hear from the previous speaker that this is the worst decision ever made, yet on the other hand we have the member for Deakin saying this changes nothing. Somewhere in the middle there, I guess, is the truth. At its heart the purpose of this legislation is to provide choice for more Australians. When implemented, this legislation will allow those on the BasicsCard to transition to the SmartCard. At the same time it will ensure new entrants to the income management program are not placed on the old technology of the BasicsCard.

Let me speak a little about some of the issues we've had with the BasicsCard—and I can assure the previous speaker that it had nothing to do with potpourri or farmers markets; I don't know where he got that from! The BasicsCard is only accepted by preapproved merchants. What this means in practice is that it severely limits where people can shop, irrespective of what they're attempting to purchase. Currently if a BasicsCard holder attempts to shop outside the available permitted merchants they are shut out of these often legitimate transactions purely because of restricted technology, and, therefore, they can't shop around for price. We heard complaints about the stigma and the lack of privacy of having a BasicsCard. We heard complaints about different prices for those on the BasicsCard. The BasicsCard couldn't enable tap-and-go or BPAY payments—fairly standard processes in modern Australia—and didn't even have a PIN for security. We heard complaints of people's BasicsCards being taken and used by others, leaving them completely without money. Basically, the BasicsCard just made people's lives that little bit more unnecessarily difficult. It was disempowering and humiliating.

This legislation will replace the Basics Card with the SmartCard, which is a much improved product. It features technological improvements that incorporate modern financial technology in an effort to meet community expectations. It looks like any other debit card, so it doesn't breach the privacy of the user every time they use it. This was a crucial bit of feedback from individuals and communities in areas where income management operates. Stakeholders said that the BasicsCard is quite simply out of date and insufficient to meet their needs. Submissions to the Senate Community Affairs Legislation Committee inquiry into the bill which repealed the cashless debit card last year also gave us the clear message that the BasicsCard is out of date and not sufficient to meet the needs of people in the communities. The Albanese government is taking action to improve the operation of this scheme, to ensure it actually helps support those who wish to use it.

We heard from the member for Deakin that he believes this bill is nothing more than a rebranding exercise—not the worst thing ever but a rebranding exercise. It is a $217.7 million rebranding exercise, according to him. Yet what we understand from the evaluation of the previous cashless debit card trial sites is that it was the support services provided alongside the cashless debit card that were what was making the difference. But guess what? Those programs were not funded by the prior government past 30 June this year. So in this bill, of the $217.7 million, 70 per cent—$158.4 million—actually goes to refunding those support programs across the four existing trial sites. The member for Deakin's amendment, should it get up, would see these programs end when the funding ends, as they had allocated, on 30 June. This is quite a stunning level of politics above what's actually right for the community.

The smart card is designed to operate in the same way as any contemporary credit or debit card. It allows for modern payment functions that include the ability to make tap-and-go payments, to shop online and to make BPAY bill payments. In this day and age that is pretty standard functionality. It will also be delivered by Services Australia, not a private for-profit provider, and it will have a PIN for added protection. It will help avoid awkward discussions about paying for products in shops. It will enable the user to maintain privacy about their financial arrangements. It will expand the choices available to those on income management, and all of that is a good thing. The whole premise of this government's approach to income management is to empower individuals and communities and to support them in gaining the skills they need to better manage and make decisions in their own lives, alongside refunding support programs that actually made the difference to the community.

Sadly, the former government did not invest in this technology, because they were too focused on pushing more people onto their privatised cashless debit card but not funding the support programs. Under the Albanese Labor government Services Australia will be providing all aspects of client interface for enhanced income management. This is a significant change from the cashless debit card program, as individuals will interact with government, rather than private businesses, to check balances, get a replacement card or get advice on how to set up a regular payment. With Services Australia delivering enhanced income management, rather than the private third-party interface, this support will be available to provide not only income management support but also support in other areas where Services Australia can assist.

The private cashless debit card has been abolished. On 6 March former cashless debit card participants in the Northern Territory, Cape York and Doomadgee regions transitioned to the more enhanced income management program and all compulsory welfare quarantining ended in cashless debit card regions. Our work now is to support these communities, and that's why the government is investing $17 million for an economic development grant round currently underway to implement projects to create sustainable jobs in Ceduna, East Kimberley, the Goldfields and Cape York and a further $1.5 million for immediate community priorities in the Goldfields, East Kimberley and Ceduna.

This bill offers that same choice to use the contemporary technology to more than 24,400 existing income management participants in the Northern Territory and the other place based locations nationally. It also ensures all eligible participants will be part of the enhanced income management and no new participants are given the BasicsCard. This bill does not change the portion of payment which cannot be spent on restricted goods, which will remain the same on enhanced income management as it was on the prior income management, dependent on the person's circumstances. It also does not change the items to be restricted, which are alcohol, gambling products, pornography and tobacco.

The Albanese government is working with communities on what the future of income management looks like for them. Any decisions about the future of income management will be based on genuine consultation with affected communities, state and territory governments and experts in the field. The amendment moved by the Greens would eliminate this important consultation if passed—the basic respect of consultation, of asking the people affected what they want. I'd really urge them to rethink this amendment. We have committed to consulting on the future of income management, and we must consult with participants, communities, women's groups, First Nations leaders and service providers. The feedback from First Nations community leaders told us more consultation was required on this future. We'll keep getting on with the job, and we'll continue to reform income management to provide a better experience for participants.

The October budget allocated $217.7 million to abolish the cashless debit card program and to fund support services. Of that, $158.4 million, over 70 per cent, will be used to provide those important support services which we know are the things that actually make the difference and work in former CDC communities. This investment is being directed to services to support people, like a youth mentoring program in Ceduna which runs activities including school and holiday care. There's parenting education and support in Wyndham and a community navigated program in financial literacy and digital literacy. This is because the consultations showed that the support programs which empowered communities and individuals were the ones that made the difference to the community—to help the community develop antiviolence measures. It's really critical that these programs continue.

This government is serious about working with and for communities that need support. That's why we are implementing this policy, and I encourage all in this place to support it.

See this speech in context