James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Families and Social Services, Senator Fifield. Will the minister update the Senate on the cashless debit card trial? How is the government supporting communities with this initiative, including in my home state of Queensland?

Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

Thanks, Senator McGrath. Colleagues, the Liberal-National government is committed to reducing the social harm caused by alcohol, drug abuse and gambling in areas with high levels of welfare dependency. I was very pleased that on 21 September the Social Services Legislation Amendment (Cashless Debit Card Trial Expansion) Bill 2018 was enacted, which expands the cashless debit card trial to Hinkler, with the rollout to commence from early 2019. The act adds the Bundaberg and Hervey Bay region as the fourth cashless debit card trial area and increases the limitation on numbers of participants to allow for the fourth trial site. The site will roll out in early 2019 and will operate in that region until 30 June 2020. The act also provides greater legislative consistency across all sites by embedding ministerial instrument provisions for the three existing sites into primary legislation. Finally, amendments moved by Senator Storer and supported by the government will require an independent evaluation of any review of the cashless debit card trial undertaken by the government or the department, which should be completed within six months. This builds on the previous legislation, which was passed in February 2018. It enables the extension of the cashless debit card in East Kimberley and Ceduna, and the expansion into the Goldfields in Western Australia to 30 June 2019.

The cashless debit card aims to test whether restricting the amount of cash in a community reduces the overall social harm caused by welfare-fuelled activities, which can be of harm to the individual. This is something worth pursuing.

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

Senator McGrath, a supplementary question.

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Can the minister advise the Senate about the level of community support for this initiative?

Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

The Minister for Families and Social Services visited Bundaberg and Hervey Bay last week and had the opportunity to confirm the results of the almost 200 consultations that have taken place across the region. He heard firsthand from local service providers, potential participants, councils and the business community about the impacts they expect the card to have, and the overwhelming response was it's about time. The expansion to the Bundaberg and Hervey Bay region is an opportunity for government to test the card's flexibility as a tool to support people in non-remote locations and to help address social problems such as high youth employment, drug and alcohol abuse, and intergenerational welfare dependency. This government makes no apology for looking to find every measure that it can to reduce harm to individuals.

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

Senator McGrath, a final supplementary.

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

How is the government working towards a sustainable and reliable welfare system in contrast with alternative approaches?

Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

The cashless debit card is also about an affordable welfare system and our belief in building a strong economy to support the services that Australian families rely on. We know that those opposite don't fully appreciate the fact that you need to have a budget which is well managed and a strong economy to support important social services provisions. As I've said previously, good economic policy and good social policy are not alternatives. They're not things that you have to choose between. You need a good economic policy to sustain and to support a good social policy. That's what this government has done. That's what this government has demonstrated and will continue to demonstrate. That is the plan that we put forward.