Senate debates

Thursday, 1 August 2019

Bills

Social Security (Administration) Amendment (Cashless Welfare) Bill 2019; In Committee

9:57 am

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Shadow Assistant Minister for Infrastructure and Regional Tourism) Share this | Hansard source

I move opposition amendment on sheet 8729:

(1) Page 6 (after line 31), at the end of the Bill, add:

Schedule 2—Community support for cashless welfare arrangements

Social Security (Administration) Act 1999

1 Subsection 124PD(1)

Insert:

community discussion report : see subsection 124PV(4).

community support report: see subsection 124PT(2).

2 Subsection 124PD (1) (definition of voluntary participant )

Omit "subsection 124PH(3)", substitute "subsections 124PH(3) and 124PHAA(4)".

3 At the end of section 124PG

Add:

(7) A person ceases to be a trial participant on 31 January 2020 unless a determination is made under section 124PV that applies to the Ceduna area.

4 At the end of section 124PGA

Add:

(7) A person ceases to be a trial participant on 31 January 2020 unless a determination is made under section 124PV that applies to the East Kimberley area.

5 At the end of section 124PGB

Add:

(7) A person ceases to be a trial participant on 31 January 2020 unless a determination is made under section 124PV that applies to the Goldfields area.

6 At the end of section 124PGC

Add:

(7) A person ceases to be a trial participant on 31 January 2020 unless a determination is made under section 124PV that applies to the Bundaberg and Hervey Bay area.

7 Section 124PH (at the end of the heading)

Add "—general".

8 Paragraph 124PH(1 ) ( bd)

Repeal the paragraph, substitute:

(bd) subsection (2A), (2B) or (2C) apply to the person; and

9 After subsection 124PH(1)

Insert:

(2A) This subsection applies to a person if, before 31 January 2020, the person is not subject to the income management regime under Part 3B.

(2B) This subsection applies to a person if, on or after 31 January 2020, the person is not subject to the income management regime under section 123UC, 123UCB, 123UCC or 123UF.

(2C) This subsection applies to a person if:

(a) a determination has been made under section 124PV that applies to the trial area that is the person's usual place of residence; and

(b) the person is not subject to the income management regime under Part 3B.

10 At the end of Subdivision B of Division 1 of Part 3B

Add:

124PHAA Voluntary participants—Bundaberg and Hervey Bay area

(1) This section applies on and after 31 January 2020 unless a determination is made under section 124PV that applies to the Bundaberg and Hervey Bay area.

(2) A person may notify the Secretary, orally or in writing, that the person wishes to be subject to cashless welfare arrangements if:

(a) the person's usual place of residence is, becomes or was within the Bundaberg and Hervey Bay area; and

(b) the person is receiving newstart allowance, youth allowance (where neither section 540AA of the 1991 Act (about new apprentices) nor paragraph 541(1) (a) of the 1991 Act (about full-time study) applies) or parenting payment; and

(c) the person is under 35 years of age on the day this section commences and the person has not turned 36 years of age; and

(d) the person does not have a Part 3B payment nominee (within the meaning of Part 3B); and

(e) the person is not covered by a determination under subsection 43(3A); and

(f) the person is not subject to the income management regime under section 123UC, 123UCB, 123UCC or 123UF; and

(g) the person is not otherwise a trial participant.

(3) A person may withdraw the notification at any time.

(4) Until a person withdraws the notification, the person is a voluntary participant, unless the Secretary determines that the person is not to be subject to cashless welfare arrangements under subsection (5).

(5) The Secretary may determine that a person who is a voluntary participant is not to be subject to cashless welfare arrangements. If the Secretary makes such a determination, the Secretary must notify the person, in writing, accordingly.

11 At the end of Part 3D

Add:

124PT Community support for trial of cashless welfare arrangement

(1) As soon as practicable after this section's commencement, the Minister must cause a review to determine whether the community in each trial area genuinely supports the trial of a cashless welfare arrangement in that area.

(2) The persons conducting the review must provide the Minister a written report (the community support report) of the review before 31 December 2019.

(3) The Minister must publish the report on the Department's website as soon as practicable after the report is given to the Minister.

(4) The Minister must cause copies of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

124PU Statement on support for the provision of services in trial areas

(1) Before 31 December 2019, the Minister must publish on the Department's website a statement setting out the steps that have been taken by the Commonwealth to support the provision of relevant services in each trial area and set out future improvements to those relevant services.

(2) Relevant services in a trial area are services relating to the care, protection, welfare or safety of adults, children or families including economic development and employment programs, early intervention and community services, and drug and alcohol rehabilitation services.

(3) The Minister must cause copies of the statement to be tabled in each House of the Parliament within 15 sitting days of that House after the statement's publication.

124PV Determination to allow for continuation of cashless welfare arrangement in trial area

(1) The Minister may, by legislative instrument, make a determination in relation to a trial area if the Minister is satisfied the community in the trial area genuinely supports the trial of a cashless welfare arrangement in that area.

(2) In determining whether the community genuinely supports the trial, the Minister must have regard to all of the following:

(a) the community support report in relation to the trial area;

(b) the community discussion report in relation to the trial area;

(c) any submissions made to the Minister under subsection (5);

(d) the views of communities bodies (if any) in the trial area.

(3) The determination must set out the Minister's reasons for being satisfied the community in the trial area genuinely supports the trial of a cashless welfare arrangement in that area.

(4) Before making the determination, the Minister must cause:

(a) a meeting to occur in the trial area for the community to discuss with the Department the effect of the determination if made; and

(b) a report (the community discussion report) to be prepared of the discussion that occurred at the meeting; and

(c) the community discussion report to be published on the Department's website.

(5) Before making the determination, the Minister must publish a notice inviting written submissions about making of the determination to be provided on or before a day (the closing day) that is no earlier than 2 weeks after the day of the notice's publication.

The cashless debit card trial has been going on for too long. It is no longer a trial. The amendment sets out a process for establishing genuine community support for the card before the end of the year. Unless the government is able to clearly demonstrate that support, the amendment would make the cashless debit card voluntary from 31 January 2020. This applies to each of the existing cashless debit card areas—East Kimberley, Ceduna, Bundaberg, Hervey Bay and the Goldfields.

The amendment requires the minister to produce by the end of the year a community support report demonstrating whether there is genuine community support for the continuation of the cashless debit card in each of the trial areas. Support from a local MP or a mayor would not be enough to justify the continuation of the card. The report would need to clearly examine whether there was genuine support in the local community. This report will be required to be made public and tabled in parliament. The amendment will also require the minister to produce a statement on the support for the provision of services. This requires the minister to set out clearly what wraparound services are available in a cashless debit card trial area and how they will be improved. This is necessary because the communities are being told by this government that the cashless debit card is the only support they will get. This is reactionary thinking, and it is the kind of approach to income management that has been disproved time and time again. The blanket application is on par with the shameful system of food stamps used in the United States. The government needs to be forced to outline the investments it will make in economic development and job creation, early intervention, health and education, and drug and alcohol rehabilitation, because the rights supports and opportunities can address some of the underlying causes of disadvantage much more effectively than the cashless debit card. If, after completing the process of producing these two reports, the minister does think there is genuine support in the community, they must make a determination to continue the cashless debit card. As part of the process, the minister must also hold a community meeting so any claims about support are transparent. The determination would be disallowable by the Senate. I commend the amendments to the Senate.

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