Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Hansard source

I table an addendum to the explanatory memorandum relating to the bill and 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 rise to speak on a Bill that continues our commitment to improve our welfare system and deliver a real difference to the lives of all Australians.

This Bill, the Social Security (Administration) Amendments (Continuation of Cashless Welfare) Bill 2020, establishes the Cashless Debit Card as an ongoing program in existing sites and provides for the transition of Income Management participants across the Northern Territory and Cape York region to the Cashless Debit Card.

The Government thanks the Senate Community Affairs Legislation Committee for its report on the Bill. The committee published the report on 17 November 2020, and recommended that the Bill be passed. The Government acknowledges the feedback and recommendation provided by the Committee, as well as the dissenting reports published by the Australian Labor Party and the Australian Greens.

The report identified that the Cashless Debit Card program is delivering significant benefits for the communities where it currently operates. The program has the objective of reducing the amount of welfare available to be spent on alcohol, gambling and drugs, helping welfare recipients with their budgeting strategies and encouraging socially responsible behaviour.

The program is showing positive results.

Card participants were spending more of their welfare payments on essential items for themselves and their families, such as food, bills, clothes, household goods and fuel. This is confirmed by our card usage data that shows that spending at supermarkets is up almost 35 per cent and spending on household goods is up over 160 per cent. Over the life of the program, over $125 million has been spent at businesses that sell groceries and food, that could not be spent on restricted items like alcohol, drugs and gambling products.

Evaluations of the Cashless Debit Card show the program is working. The first independent evaluation released in late 2017 states that the card has shown 'considerable positive impact' in the initial trial sites, including:

The Bill will provide certainty for welfare recipients currently on the Cashless Debit Card, and see over 25,000 additional welfare recipients in the Northern Territory and Cape York region transition from Income Management to the Cashless Debit Card. Currently, these participants hold a BasicsCard, a card which directs welfare expenditure towards priority needs.

The Government recognises that the BasicsCard, while effective, can restrict an individual's ability of choice. Currently, the BasicsCard only works in stores that have signed a merchant agreement with Services Australia.

In comparison, the Cashless Debit Card works everywhere except when individuals try to purchase alcohol, gambling products, some gift cards and to withdraw cash. The Cashless Debit Card provides Income Management participants with greater consumer choice and autonomy while reducing red tape for businesses. For example, its provides interest on participants' funds, gives access to new technologies such as contactless payments, provides greater choice where participants can shop and enables participants to know when and how their money is being used just like you and I do every day with our bank cards.

The Government has trialled both Income Management, through the BasicsCard, and the Cashless Debit Card in different communities to improve financial management and reduce social harm.

While the Government recognises the effectiveness the BasicsCard has had on the communities in which it has operated, it is time to provide Income Management participants in the Northern Territory and Cape York region with the opportunities that the Cashless Debit Card brings.

You just have to look at the positive impacts the Cashless Debit Card has had across the current four program areas, from a reduction in drug and alcohol related presentation in the emergency wards and less police call-outs late at night through to a general feeling of improved safety on the streets of these towns.

Business leaders, local Indigenous leaders, elected members, police and from health officials and there is a consistent message—'The card must stay.'

This Bill gives these four communities, and the new regions of the Northern Territory and Cape York, further confidence about the Government's commitment to reducing the devastating effects of alcohol, drugs and gambling in these communities.

We must continue to support communities that put their hand up and drive positive change and improved outcomes for vulnerable individuals within those communities.

I commend the Bill.