Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Social Services, Senator Fierravanti-Wells. Can the minister update the Senate on the Turnbull government's cashless debit card initiative?

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

I thank Senator Brockman for the question. This week the cashless debit card bill was passed in the Senate, and I thank those senators who supported us and supported the passage of that important bill. The bill expands the trial sites to the Goldfields region in Western Australia and extends the existing two trial sites for another two years. The card has been trialled in Ceduna, in South Australia, since March 2016 and in the East Kimberley region, in Western Australia, since April 2016.

The trial was aimed at whether restricting the amount of cash in a community reduces the overall harm caused by welfare-fuelled alcohol, gambling and drug misuse at the individual and community level. It applied to all people on working-age income support payments, excluding age pensioners, who were able to volunteer. Evaluation of these trials showed that the card had considerable positive impact in communities, including 48 per cent of drug takers using fewer drugs, 41 per cent of drinkers drinking less and 48 per cent of gamblers gambling less. And this evaluation found widespread spillover benefits from the card, including 40 per cent being able to better look after their children and 45 per cent being able to better save money. There were also reports of increased purchases of baby items, food, clothes, shoes, toys and other goods for children.

Following the success of the initial trials and extensive consultation, the Turnbull government committed to expand the cashless debit card trial to include one more site. This is another example of the Turnbull government delivering on its commitments.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Brockman, a supplementary question.

Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for her answer and note in passing the outstanding work of Rick Wilson, the member for O'Connor, in advocating on behalf of his local community. Minister, how does the cashless debit card work and how will it benefit those who use it?

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

The cashless debit card looks and operates like a normal bank card; however, it does restrict the purchase of alcohol, gambling products and gift cards and cannot be used to withdraw cash. People on the card receive 20 per cent of their welfare payment in their usual bank account, and 80 per cent of their welfare goes into the debit card. For example, 100 per cent of lump-sum payments from Centrelink and family tax benefit also go into their cashless debit card. The card does not change the amount of money that people receive from Centrelink. It only changes the way in which people receive and spend their fortnightly payments. The card of course is not the answer to all of those communities' problems, but it does lead to some fundamental improvements in communities with high levels of welfare dependence and social harm.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Brockman, final supplementary question.

Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise of support for the expansion of the cashless debit card, and are there any alternative policies?

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

There's a large amount of community support for the card to be trialled in communities in the Goldfields and in the Hervey Bay area in Queensland. Just ask, as Senator Brockman has said, the member for O'Connor and, of course, the member for Hinkler about their communities and what their communities are telling them. The five shires of the Goldfields told the Prime Minister that they want to see the card, because they believe it will improve life in their communities. As the community in Hinkler has told their representative, over 75 per cent of that community want the card. Even the former Labor member for Hinkler, Brian Courtice, has written to voice his support for the card in the Hervey Bay area, and I'd like to quote what he has to say: 'Put politics aside and speak up for those who can't speak for themselves on this issue.' The cashless debit card in the electorate of Hinkler is worth a go to try and give children and young people a future, and those opposite should heed those words.