Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Hansard source

I thank all senators for their contributions to this debate on the Social Services (Administration) Amendment (Cashless Welfare) Bill 2019. The cashless debit card is an important part of our plan to improve the lives of Australians by supporting people, their families and communities in places where high levels of welfare dependency co-exist with high levels of social harm. By reducing the amount of cash available in a community, the cashless debit card is reducing the overall harm caused by welfare-fuelled alcohol, gambling, and drug misuse—and it's working.

The evidence on the ground shows that the cashless debit card is making a real difference, improving people's lives and improving communities. Over a dozen research projects attest to the trial's success, most recently the baseline report into the Goldfields, which reaffirmed previous findings. My colleagues in this place have talked about the first impact evaluation and the findings that the cashless debit card is having a considerable positive impact in the first two trial sites. These findings included a number of significant statistical improvements in things like the reporting of less frequent drinking, the reporting of less frequent drug use, and the reporting of less frequent gambling and gambling-addicted behaviour. We have also seen decreases in drug and alcohol issues; decreases in crime, violence, and antisocial behaviour; improvements in child health and wellbeing; improvement in financial management; and the ongoing and even strengthening of community support for the card on the ground.

Results from the Australian Early Development Census show improved outcomes for children living in a cashless debit card site since the introduction of the card. From 2015 to 2018 the number of children living in Kununurra and considered really vulnerable has decreased significantly. Significant improvements were seen in social competence, emotional maturity, language and cognition, communication skills, and general knowledge. Children living in Wyndham saw a substantial improvement in emotional maturity over the same period. Our review of emergency relief food vouchers and parcels in Ceduna found that, within 18 months of being placed on the card, 16.5 per cent of cashless debit card recipients no longer needed, or needed less, assistance in this area.

The cashless debit card is not a panacea. But the evidence clearly shows that it works, and acts as a stabilising force to help people pay for essential items while preventing the excess purchase of alcohol and gambling products. Between April 2016 and July 2019, the total value of all transactions made across all sites by cashless debit card recipients using their cards was approximately $175 million. That is $175 million in taxpayer-funded welfare dollars being used on essential items and not being used on non-essential purchases, which include alcohol, drugs and gambling. Thirty-four per cent of all transactions made on the cards were to buy food. There has also been $400,000 worth of attempted but unsuccessful purchases of alcohol and gambling products, that we're aware of. The Morrison government's priority will always be to put the rights of the child first—to have a roof over their head, and food in their tummy—ahead of a welfare recipient's choice to spend taxpayer-funded welfare on drugs, alcohol or gambling.

Unemployment is also down in all sites since the introduction of the cashless debit card. Most recently, in Hinkler, in Queensland, the unemployment rate has dropped to 7.3 per cent, the lowest in almost seven years. Most importantly, youth unemployment has dropped from 28 per cent in May 2018 to 18.1 per cent in May 2019, a drop of almost 10 per cent in a 12-month period.

The Social Services (Administration) Amendment (Cashless Welfare) Bill 2019 continues the operation of the cashless debit card program but improves the processes introduced through recent non-government amendments for participants to exit the program. It provides a more effective and consistent application process, and ensures that the welfare of children, families, and the whole community is considered when assessing applications for participants to exit the program. The passage of the bill will clarify the administrative requirements of the cashless debit card exit process and ensure that the exit process is consistent with the cashless debit card regions. There is no change to the continuation of the cashless debit card program in the current trial sites. There is no change to the government's commitment to reduce the devastating effects of alcohol and drug use and gambling in these communities. The government is introducing this legislation following consultation with community leaders to ensure there is a clear and fair process for participants to exit the cashless debit card program where appropriate.

The government thanks the community leaders it has worked with and will continue to work with throughout the implementation and operation of the cashless debit card program. We acknowledge their courage and their leadership to assist members of their community to break the cycle of welfare dependency, to improve social outcomes and to support people to get off welfare and the card and into employment. Taxpayers expect nothing less. The government strongly believes that providing employment is the most important thing that we can do.

We have heard from both Labor and the Greens on this bill, and I thank them for their contributions. The Greens have moved amendments to the extension process that the government unfortunately cannot support. These changes would mean that a participant charged with disorderly conduct for drunken behaviour could remain eligible for an exemption despite demonstrating the exact behaviours that the cashless debit card is aimed to address.

Where Senator Siewert or other people have cases of individuals having difficulty using the card to pay their bills, I invite them to provide me with those details separately, and my office will investigate. Senator Siewert has also asked a number of questions relating to operational matters of the exit process—and I also thank Senator Siewert for the collegiate way in which she has worked with me and my office in drafting this bill. These changes are best suited to an operational guide or information sheet that will be accompanying the application form. I'll instruct my department to ensure appropriate information is contained in this documentation and provide it to the senator and anybody else. I commend this bill to the chamber.