Anthony Chisholm (Queensland, Australian Labor Party, Assistant Minister for Education) 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—

Today I am introducing the next step in the Albanese Government's election commitment to reform Income Management—the Social Security (Administration) Amendment (Income Management Reform) Bill 2023.

The Bill 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of Cashless Debit Card and Other Measures) Act 2022, which established the enhanced Income Management program and repealed the Cashless Debit Card program.

The amendments made by this Bill will facilitate an effective and efficient transition to enhanced Income Management for existing Income Management participants who choose to access a superior banking product, and ensure that new entrants into the program are provided with the contemporary technology of the SmartCard.

This is to be given effect through three key reforms, to be implemented from a date to be set by proclamation.

Firstly, the Bill extends the enhanced Income Management regime to include all of the measures that are in place for the Income Management regime. This will allow eligible welfare recipients to enter an enhanced Income Management regime that offers improved technology and access to over one million outlets across Australia as well as 'Tap and Go' transactions, online shopping and BPAY.

Secondly, the Bill gives people subject to the Income Management regime under Part 3B the choice to move to enhanced Income Management from the commencement date, thereby allowing them to access the BasicsCard bank account and superior SmartCard.

Thirdly, the Bill directs all new entrants to the enhanced Income Management regime, ensuring no new participant is issued the BasicsCard—all new participants will receive the SmartCard. We will undertake further consultation on the long-term future of Income Management.

Former Cashless Debit Card participants in the Northern Territory and Cape York and Doomadgee regions, and those who chose to remain on the Cashless Debit Card program in other areas, transitioned to the enhanced Income Management program on 6 March 2023.

This Bill offers that same choice to use the contemporary technology to more than 24,400 existing Income Management participants, in the Northern Territory and other place-based locations nationally. It will also ensure that all newly eligible participants will be part of enhanced Income Management, to ensure no new participants are given a BasicsCard.

The more modern SmartCard provides banking functions including 'tap to pay' payments, online shopping and BPAY bill payments. Importantly the SmartCard is delivered by Services Australia and has a PIN number for added protection.

Our absolute priority is to ensure participants are supported and given access to a modern financial experience.

The service offering of the BasicsCard has become increasingly out of step with modern expectations. Submissions to the Senate Community Affairs Legislation Committee enquiry into the Social Security (Administration) Amendment (Repeal of the Cashless Debit Card and Other Measures) Bill 2022 also gave us a clear message that the BasicsCard is out of date, and not sufficient to meet the needs of people in communities.

The former government did not invest in the BasicsCard because they were focused on pushing more people onto their privatised Cashless Debit Card.

We have listened, this Bill responds to the clear message that the BasicsCard is out of date—that is it is important for this Bill to be dealt with as soon as possible.

The Albanese Government is working with communities on what the future of Income Management looks like for them. Any decisions about the future of Income Management will be based on genuine consultation with affected communities, state and territory governments and experts in the field. Until that time, this Bill will ensure Income Management is more in tune with the needs of participants, based on the feedback we have already heard.

Further, this Bill will specifically exclude Age Pensioners and Special Needs Pensioners as eligible payments for the Vulnerable Welfare Payment Recipient (VWPR) measure of enhanced Income Management. This reflects the Albanese Government's strong view that this was never an appropriate measure under the existing Income Management program, and ensures that any future governments are unable to enact this change without standing here in this place and attempting to justify it.

It will also specifically exclude Veterans' Payments as eligible payments for enhanced Income Management.

It is important to be clear here to provide communities with certainty about what these changes mean for them. This Bill does not remove the Income Management program or amend the underlying policy, which is based on applying restrictions to an individual's welfare payment when they meet specific eligibility criteria, to ensure a portion of their payment cannot be spent on restricted goods.

The Bill does not change the eligibility criteria which determine whether an individual is placed on income management. As such, no participants will exit the scheme who would otherwise be subject to income management. Any new participants who will be placed on enhanced Income Management would otherwise have been placed on Income Management.

This Bill does not change the portion of payment which cannot be spent on restricted goods, which will remain consistent with the portion currently restricted based on eligible measure.

It also does not change the items to be restricted, which are alcohol, gambling services, pornography and tobacco.

Importantly, it also does not change the current ability for state and territories to refer people to income management where there are concerns, for example relating to child protection. This ability exists in the income management regime and will be protected by inserting equivalent sections into the enhanced Income Management.

Feedback from First Nations community leaders told us more consultation was required on the future of Income Management. We heard that any change needs to be measured and respond to community needs. Decisions that impact First Nations people will be made in partnership involving extensive consultation.

As I said in this place when I introduced our Bill to abolish the Cashless Debit Card last year—we will continue consulting with, and listening to, a wide range of stakeholders, including First Nations leaders, women's groups, service providers, communities, people receiving welfare payments and our state and territory government counterparts.

These diverse perspectives on local needs will strongly inform what the future of Income Management looks like. 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 and communities with a range of supports that they can choose to use when and how it suits them best.

Debate adjourned.