Concetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | Hansard source

I start by thanking senators who have contributed to this debate on the Social Services Legislation Amendment (Cashless Debit Card) Bill 2017. This bill will extend the trial of the cashless debit card to 30 June 2019. The government's proposed amendments also specify that the trial will be limited to three sites—namely, the East Kimberley and the included communities; Ceduna and the surrounding region; and the Goldfields. The bill retains the existing legislated limitations on the number of sites, participants and duration of the cashless debit card trial. Passage of this bill will ensure that the cashless debit card can continue to deliver the positive impacts already felt in Ceduna and the East Kimberley and will allow roll out to the Goldfields.

The CDC aims to limit the amount of welfare payments being spent on products that can harm the broader community. This means it is applied to most people on welfare payments in order to reduce the cash available to spend on harmful goods. It is not a punitive measure and does not target problem individuals. An independent evaluation of the existing trial sites was conducted by ORIMA Research in 2016-17. The evaluation found that the card had a considerable positive impact in both trial sites. Overall, the research found that the cashless debit card had been effective in reducing alcohol consumption and gambling, and it was also suggestive of a reduction in the use of illegal drugs. Continuing the cashless debit card in Ceduna and the East Kimberley will focus on sustaining these impacts in the longer term. If the current end date is not extended, the program must end by 30 June 2018, which will risk undermining the positive outcomes already being experienced by these communities.

This bill will also allow the government to meet its commitment to expand this initiative to the Goldfields in Western Australia, where there continues to be widespread community support for its introduction. In September 2017 the Prime Minister announced the government's intention to expand the cashless debit card to the Goldfields, following extensive consultation across the community. Between May and December 2017 over 300 consultations, with over 86 organisations, and 10 public information sessions were held. Consultation continues in the Goldfields in preparation for implementation. Momentum in the community for the trial has been considerable, with a number of working groups established in late 2017 to assist with implementation, planning and oversight.

There is a strong need for additional tools to address social harm in the Goldfields. Western Australia Police Force data indicates that the domestic and non-domestic assault rate in the Goldfields is more than twice the state average. Alcohol was a factor in two-thirds of all domestic assaults from 2009 to 2013, and half of all non-domestic assaults. Alcohol-related hospitalisations and deaths were 25 per cent higher than the Western Australia state average from 2007 to 2011.

The government has rejected amendments proposed by the opposition, primarily because they would prohibit the expansion. The opposition's amendments would also decrease the flexibility available to tailor the cashless debit card program to meet individual community needs. The initial trials were designed and implemented in close consultation with community leaders. Aspects of the program, including the package of wraparound support services and the community panels, are reflective of individual community requirements. Learnings from existing sites indicate that services may need to be adjusted over time as demand for a particular service type has not always met expectations and as we get a better understanding of what is or is not working on the ground. The opposition's amendments would impact upon the current level of flexibility to respond to these requirements, particularly as needs evolve.

In drafting the bill, the government has carefully balanced community support for the cashless debit card in existing sites and in the Goldfields with the concerns raised in parliament around allowing additional time for gathering of evidence on the card's effectiveness. This bill will provide more time to study the impacts of the cashless debit card and maintain parliament's right to consider any further extensions. The continuation of the cashless debit card demonstrates the government's commitment to providing a strong social welfare safety net, to reducing social harm in areas with high levels of welfare dependency and to supporting vulnerable people, families and communities. I commend the bill to the House.