Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Hansard source

The coalition will not be opposing this bill, the Social Security (Administration) Amendment (Income Management Reform) Bill 2023, but that doesn't mean to say we don't hold very serious concerns about how this Albanese Labor government will manage the transition of vulnerable Australians off the BasicsCard and onto the so-called SmartCard. The government has taken an extraordinarily ideological position on abolishing the compulsory cashless debit card, and that has seen an absolute disaster unfold in our vulnerable communities in the country. There is clear and irrefutable evidence showing that, since the compulsory nature of the cashless debit card was abolished by the Labor government, crime rates are already through the roof.

We had a similar debate in this place last year when the government applauded themselves for abolishing the cashless debit card. During that debate we on this side of the chamber made it very clear to the government that serious and devastating consequences would follow the abolition of the card. We pleaded with the government at the time not to do this: if you do this, if you abolish the cashless debit card, 'as sure as night follows day we will see alcohol and drugs flood into vulnerable communities' and the subsequent antisocial behaviour that will inevitably follow. That was not theoretical. It wasn't us making a political point. You don't need to be a genius to work out the consequences of ripping out an important social support system from vulnerable communities, and yet the government went ahead and did it anyway. And now we are seeing the statistics, which don't lie.

I put on the record how disappointed I am in the Greens about their capitulation to the Labor Party on an amendment that we put forward that would have required the government to provide details of the crime and social harm statistics—the Greens teaming up with the Labor Party to deny transparency around something that has such devastating consequences for communities. I still intend to move my amendments in relation to this and hope that maybe some common sense and decency might prevail in this place. I put on the record that I will be moving a second reading amendment to effect.

In a roundtable earlier this year in the parliament, community members and leaders from the Goldfields and Kimberley regions of Western Australia came to the parliament and told us themselves what was happening on the ground. They outlined how now, once again, they are seeing children coming to school having not eaten because there's no food at home. They're having to rely more and more on the school system to try and help them through. But when the cashless debit card was in place, we saw a huge improvement in this area because welfare recipients were spending 80 per cent of the money that they were receiving on everyday goods that you'd find at the supermarket. Now, sadly, we're seeing so much of that money spent in the bottle shop and the pub, and we're seeing the human misery and the suffering that have resulted from more drugs and alcohol in these communities. Story after story confirms these statistics. Towns such as Ceduna in South Australia had been seeing a resurgence of tourism and had a great level of harmony whilst the cashless debit card was in place. Now, they've seen that almost vanish overnight, with many long-term residents of the town opting to actually move away from their community. This is heartbreaking. No-one in this chamber wants to see these people or these communities suffer, I would hope. It beggars belief that the government would put in place a policy that they know will lead to suffering of women and children, because we know that more drugs and alcohol flowing into communities will disproportionately harm women and children.

This is a very narrow bill in that it helps transition people who are on the compulsory BasicsCard in the Northern Territory from the old BasicsCard technology to the updated technology that was the basis for the cashless debit card. Those opposite criticised the government for the CDC, and yet they're now relying on the very technology that the CDC had in place on a compulsory basis. So they're intending to transition everybody in the Northern Territory on the BasicsCard to the CDC technology—technology that was developed by the coalition. On the one hand, we are so appalled by what the government has done here that our first inclination is to say that we don't support anything the government does in this space. They have tarnished themselves so badly and they have disregarded the needs of communities that we should not support anything that they do when it comes to income management.

It's also worth mentioning a couple of things in relation to the so-called SmartCard. The SmartCard is a rebranded cashless debit card. That is all it is. All you have to do is look at some of the providers of those cards and what they've said about the updated SmartCard, a card that has cost $217.7 million. As the Traditional Credit Union explained to its cardholders, the difference between the CDC and the new SmartCard is—drumroll!—its colour and its name. That's what $217 million gets you under a Labor government—a change in colour and a change in name. Why would you spend $217 million to take a technology that was already in place, developed by the coalition, and simply rename it? Notwithstanding the absolutely appalling waste of taxpayers' money, at least those on the BasicsCard in the Northern Territory will now get access to the updated technology that the coalition developed with the CDC. In that respect, and for that reason, we will not stand in its way.

But leaders from cashless debit card sites, community leaders and Indigenous leaders, are saying, 'Please reinstate the cashless debit card and help us deal with the dysfunction, violence and alcoholism that we are now seeing again.' Sadly, what we've seen from those opposite, from the minister, the assistant minister and the Prime Minister, is this approach of talking down to communities instead of listening to them. At a time when there has been a lot of talk about Anthony Albanese's Voice to Parliament, it is ironic that this government is not listening to the voices of those in these communities who are witnessing the harm of this government's decision and what it has caused to their communities. Speaking to the ABC Goldfields on 15 February, the Assistant Minister for Social Services claimed that communities were being disingenuous in their criticism of the government's repeal of the CDC. I sincerely hope the government intends to walk back those comments. I wouldn't want to be out there as a minister criticising those who are on the front line, on the ground, currently having to deal with the mess that has been created by this government. Those people on the ground are the ones who are having to help intoxicated people in the street find safety. They are the emergency services workers and the police who are there to respond to increased violence, including violence against women and children. So I appeal to the people of the Labor Party and those at the other end of the chamber.

There is an off-ramp here. I think the Australian people will give you more credit if you admit that you've made a mistake rather than push on with this bad policy. Walk back from this catastrophic error which is leading to more crime, including violent crime, in vulnerable communities. This pigheadedness around the cashless debit card, letting politics get in the way of the best interests of vulnerable people in community, is, quite frankly, a shameful indictment on the Albanese Labor government. They are essentially saying, 'Don't worry about the people that suffer along the way, because we don't want to suffer the embarrassment or indignity of admitting that we made the wrong call.' The coalition will unreservedly congratulate the government for admitting that it has made an error. I think we would all walk away from here feeling relieved and grateful that there were women and children who were safer because there were fewer drugs and there was less alcohol in these vulnerable communities, because, let's be frank: that's exactly what we're talking about here today.

Finally, I appeal to the government: it's not too late to reinstate the compulsory nature of the CDC in the sites where it was working exceptionally well. If you don't believe me, then believe the community representatives from the Goldfields, from the Kimberleys, from Ceduna and other places around Australia who have seen a tsunami of drugs and alcohol causing huge crime problems in their communities. Since the card has been abolished in these communities, we've seen crime statistics double—I'll repeat that: crime statistics double. These crimes we're talking about are of public disorder and crimes against property, whether it be a broken window or a fight on the street. But we're also talking about horrific and violent crimes. Tragically, we're talking about domestic violence; we're talking about the neglect of children. If this doesn't tug at the consciences of those in government and encourage them to take action, I really don't know what will.

That is why I'll be moving an amendment that sets out the catastrophic error that Labor has made and calls on the government to reinstate the compulsory cashless debit card to help these communities, because the coalition introduced the cashless debit card to protect vulnerable communities and its people and reduce the amount of welfare payments that were being spent on alcohol, gambling and drugs. Since the program commenced, participants have made more than 20 million approved transactions with the CDC, with over $273 million spent where the primary product is food.

But the harm and hardship that the government's abolition of the CDC has caused some of Australia's most vulnerable communities should not be understated. So we will be calling on the government to, without delay, reverse its decision to abolish the cashless debit card and stop the alcohol-fuelled violence, drug abuse and child neglect in our most vulnerable communities.

But, as I said, the coalition will not be opposing this bill. We won't be opposing it particularly because people in the Northern Territory who have been on compulsory income management, and remain on compulsory income management under this government—that is the BasicsCard—are getting access to the functionality that is the CDC, rebranded. But the opposition's support of this bill in no way means that we walk away from our vehement opposition to the ideological and destructive decision by the government to abolish the compulsory cashless debit card which has proved critical in supporting vulnerable communities. I condemn the government for doing it.

I formally move my second reading amendment:

At the end of the motion, add ", but the Senate:

(a) notes:

(i) the Coalition introduced the Cashless Debit Card to protect vulnerable communities reducing the amount of welfare payments available to spend on alcohol, gambling and illegal drugs,

(ii) since the Cashless Debit Card program commenced more than $988 million has been spent using cashless debit card accounts; participants making more than 20 million approved transactions with over $273 million spent where the primary business is food,

(iii) the harm and hardship the Government's abolition of the Cashless Debit Card has caused some of Australia's most vulnerable communities,

(iv) the Government's hypocrisy by reintroducing the Cashless Debit Card and rebranding it the SmartCard with the new card supported by the same provider Indue,

(v) the Government has committed over $217 million of taxpayers' funds to this expensive rebranding exercise,

(vi) the Government has failed to provide details of the total cost to taxpayers of the new SmartCard, and

(vii) the Government has rushed and total mismanaged transition to the SmartCard; and

(b) calls on the Government to, without delay, reverse its decision to abolish the Cashless Debit Card program and stop the alcohol-fuelled violence, drug abuse and childhood neglect in our most vulnerable communities".