Tim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | Hansard source

I thank senators who have contributed to this important debate on the Social Security (Administration) Amendment (Income Management Reform) Bill 2023. The government has listened closely to the contributions of all senators and I'm pleased to be able to address some of those contributions.

The bill is the next step in the Albanese government's election commitment to abolish the punitive cashless debit card regime and take on the reform of income management. It builds on changes made by the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022, which established the enhanced income management program and repealed the cashless debit card program.

This bill ensures that no new participants are issued with the out-of-date BasicsCard and, instead, that they have access to a significantly updated technology platform and modern card, the SmartCard, capable of supporting a range of mainstream banking functions, including tap and go payments, online shopping and BPAY bill payments. Importantly, the SmartCard is delivered by Services Australia and has a PIN for added protection. The bill will also give people subject to the income management regime the choice to move to enhanced income management from the commencement date, thereby allowing them to access the BasicsCard bank account and superior SmartCard.

Our absolute priority is to ensure participants are supported and given access to a modern financial experience and do not experience the stigma of outdated financial technology. With the passage of this bill we will take another step towards reforming income management in Australia, and more than 25,000 Australians will have access to enhanced income management and the SmartCard, increasing choice over where and how they can spend their money. But, we know there is still a way to go.

I'd like to thank the Community Affairs Legislation Committee for its report into this bill, acknowledge the contributions of all those who made submissions or appeared at the hearing and note the various recommendations provided. The committee report recommended that the government consider whether a review period is practicable and facilitative to the policy intent. The Albanese government made a commitment to continue consulting with and listening to a wide range of stakeholders, including First Nations leaders, women's groups, service providers, communities and people receiving welfare payments.

This consultation is underway and is the most appropriate way to review and reform the income management program, which has been in place since 2007. For some people on income management, this program has been the norm for them during their entire adult life. The government takes this matter seriously and we worked with individuals and communities on what services and supports are needed, and what the future of income management looks like.

I also thank the Australian Greens and Senator Thorpe for their input into the report and ongoing interest in this program. Both have recommended or raised the inclusion of a sunset clause, limitation on ministerial powers, exit provisions or the abolition of all compulsory income management. The government notes these recommendations and considers that those changes are not appropriate to be made through this bill. However, I want to be clear about our position. The current consultation underway in regard to the future of income management is listening to individuals and communities about these very issues. Decisions we take about this matter will be informed by those consultations. Anything which affects those consultations runs the risk of undermining the integrity of that process and undermining the trust of communities. The government will not make decisions or support amendments that would see vulnerable people transitioned off this program without much-needed support.

Senators in this debate have raised concerns about the powers of the minister to make instruments that will operationalise the enhanced income management program. The bill does not extend the powers to the minister, it only replicates what is already in the existing income management legislation. By replicating the measures and ministerial powers already existing for income management, support remains in place for communities while consultation on the future of the program, more broadly, continues. Limiting or removing the flexibility that the ministerial powers provide would limit the government's ability to respond to the feedback gathered through consultation and to provide real and tailored outcomes.

Senator Thorpe's dissenting report also recommended a substantial investment in social services.