Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Government is introducing the first legislative requirement to abolish the Cashless Debit Card—the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Bill 2022.

This Bill delivers on the Albanese Government's election commitment to abolish the Cashless Debit Card, and is the first product of ongoing and sincere community consultation.

The Cashless Debit Card has been operating across Australia for six years.

The former government introduced the Card in Ceduna in 2016 but over time it was expanded to include the East Kimberley, Goldfields, Bundaberg and Hervey Bay areas, and most recently—the Northern Territory and Cape York.

The former government claimed the Card would help to address some adverse behaviours relating to drug and alcohol misuse in communities, by quarantining a proportion of a person's welfare payment.

Despite this intention, there has never been evidence to show that the Cashless Debit Card is delivering on its objective.

Numerous evaluations, inquiries and audits have never rendered clear, unequivocal data that demonstrated the Card was working.

Just last month, the Australian National Audit Office released its latest audit on the performance of the Cashless Debit Card, highlighting once more the lack of evidence available to demonstrate the Card's success. There were no key performance indicators, evidence or evaluation conducted to support the former government's scheme—and despite this message being delivered twice, in the ANAO's first report in 2018 and the second last month—the former government refused to listen.

Service providers on the frontline of helping those who interact with the card, have been scathing of its existence.

St Vincent de Paul said the card had "unintended and expensive consequences across government and the community, including social exclusion and stigmatisation, increased financial hardship, and the erosion of individual autonomy and dignity".

In a policy briefing back in 2019, the group said: "ultimately, this is a punitive and paternalistic measure that is driven by ideology rather than evidence".

Put simply, the Cashless Debit Card is not delivering on its long-promised outcomes. And no one is buying it anymore—certainly not this government.

Recent consultations in Ceduna and the East Kimberley region have only reinforced the findings and views of others—as have visits to Bundaberg and Hervey Bay by the Assistant Minister for Social Services, the Honourable Justine Elliot MP.

The Government has been told of tragic stories relating to the inadequacy of the Cashless Debit Card. Stories in communities like Kununurra in the East Kimberley region where the introduction of the Cashless Debit Card has not stopped alcohol misuse and instead encouraged workarounds which have made people worse off overall, with less money in their accounts.

The Minister for Social Services has listened to First Nations community leaders, service providers and Cashless Debit Card participants in these communities.

CDC participants have told us the Card stigmatises them and makes their lives more difficult because they cannot access the cash economy.

In some cases it even blocked the rent payments of users, making housing stability an extra issue they had to face.

Users also described the shame and anguish the card brings—it makes them feel like they are being punished for being on welfare.

Today, our government is saying enough is enough—we are calling time on the Cashless Debit Card.

There is a better way. And it's why Prime Minister Anthony Albanese said removing this card would be central to our priority agenda if we were elected into government.

We are moving decisively to abolish the CDC in the first week of the new Parliament.

And we're doing it in a considered, deliberate manner.

It is critical that the transition away from the Cashless Debit Card is smooth, and people and communities continue to have access to supports that they need.

And that is exactly what this Bill—the first step to transition participants off the Card—will do.

This Bill will:

Our absolute priority is to ensure participants are supported through their transition off the Card in a safe and structured way.

This will be done through extensive communication and an outreach strategy so participants are well informed about the changes and what it means for them.

Information and education sessions will be held in each Cashless Debit Card site over the transition period with culturally appropriate information and support.

Services Australia will conduct individually targeted transitional support interviews for those who need it, or want this additional assistance, to make sure exiting participants are well informed on the options available to them. Not everyone will need this level of assistance—but this approach will ensure no one is left behind due to being forced onto this card by the former government.

As a government we will deliver on our positive, clear plan for a better future for our country guided by two fundamental principles:

No one left behind—being we should always look after the disadvantaged and vulnerable.

And no one held back—because we should always support aspiration and opportunity.

I want to be clear on two points. Firstly, there will be no requirement for a CDC participant to prove anything in order to move off the card. Second, every CDC participant will be transitioned off the card once this Bill passes the Parliament, and that the CDC will be abolished—it will no longer exist in any way, shape or form. The engagement with Services Australia is to ensure people have the support they might need to assist them with their transition.

Where participants require continued assistance with budgeting, transferring direct debits from their Cashless Debit Card or referrals to further support services—there will be help available including options for voluntary income management.

This Bill is not only the first step in the transition journey away from the Cashless Debit Card, but it is a significant milestone in the reform of cashless welfare in Australia.

Any measures we put in place as a government we want to ensure will help the people we are assisting.

Welfare support should not be seen as punitive. But should always return to our core principles of no one left behind and no one held back.

As a Labor Government, our government will aim to support the most vulnerable in our community and through income support, education, health, public housing and childcare we will make Australia a better place than when we came into government.

Extensive community consultation will continue on the broader question of income management, to explore the future of this and other support needs in communities in line with our core principles.

We will continue consulting with, and listening to, a wide range of stakeholders, including First Nations leaders, women's groups, service providers, communities and—importantly—people receiving welfare payments.

These diverse perspectives on local needs will strongly inform our next steps. Consultation is central to everything we as a government will do. We want to ensure changes or measures we implement are helping those who need it.

Our focus and our objective as a Government remains clear—to empower people and communities, and provide individuals in need with a range of supports that they can choose to use when, how and in a way that suits them best.

Ordered that further consideration of the second reading of this bill be adjourned to 5 September 2022, in accordance with standing order 111.