5.1
The committee acknowledges the breadth of views received during the course of the inquiry on the abolition of the cashless debit card (CDC) program and the future of income management more broadly.
5.2
The committee understands that the solutions to the concerns raised are not simple, owing in part to the historical beginnings of compulsory income management under the Northern Territory Emergency Response. It also notes that the CDC program operates differently across the various states and territory, and that participants across the regions have different lived experiences of the card.
5.3
Additionally, the committee is aware of the challenges inherent in attempting to solve complex and long-standing social issues with a standalone tool such as a card.
5.4
The committee reiterates that the bill under inquiry is only the first step in the process to reform cashless income management arrangements in Australia.
5.5
It is heartened to see the Commonwealth Government’s firm commitment to inclusive consultation and genuine co-design, both in relation to the transition away from the CDC program and broader reform of income management. The committee considers that this commitment to diverse perspectives, particularly those of First Nations Australians, is necessary to ensure that any changes to income management arrangements work to help and empower those in need.
The future of income management
5.6
The committee thanks the individuals and organisations who took the time to share their views and recommendations on the future of income management in Australia.
5.7
In particular, it acknowledges the evidence of the many submitters advocating for the removal of all forms of broad based compulsory income management.
5.8
The committee emphasises that the bill under inquiry only addresses the abolition of the CDC program. The bill does not go to the future of the BasicsCard or of income management more generally.
5.9
As a result, the committee considers it appropriate to refrain from making recommendations on these broader matters.
5.10
However, the committee highlights that while the bill under inquiry only seeks to abolish the CDC, it leaves the door open for further consultation on the way forward for income management in Australia.
5.11
The committee is reassured by evidence from the Department of Social Services that the future of income management has been, and will continue to be, the subject of deep engagement with participants and stakeholders, including representative bodies and service providers.
5.12
The committee is also reassured by the words of the Minister for Social Services, that while the bill is a ‘first step’ in the transition journey away from the CDC, it is also a ‘significant milestone’ in the reform of cashless welfare in Australia.
5.13
To this end, the committee strongly encourages the Government to take the evidence from submitters to this inquiry into consideration as it contemplates the future of income management and the BasicsCard, particularly in the Northern Territory and Cape York.
5.14
The committee has listened carefully and is persuaded that the blanket imposition of mandatory income management does not work, and is in fact incredibly harmful to individuals, families and communities. It recognises that the principles of choice and self-determination must be central to any reform.
5.15
It understands that amongst many submitters there is a strong preference for tailored, technologically-advanced and most importantly, voluntary, income management tools that individuals can choose to access.
5.16
The committee is particularly mindful of the calls from First Nations stakeholders that any reform to income management must prioritise the independence and capacity of Aboriginal and Torres Strait Islander people, encompass genuine opportunities for co-design, and include appropriate avenues for support.
The need for wraparound support services
5.17
The committee recognises that no single card is capable of tackling issues arising from significant social and economic disadvantage, and understands that wraparound support services are required.
5.18
From listening to submitters, the committee acknowledges that these services must be well-funded, co-designed and geographically, culturally and linguistically accessible in order to effectively benefit communities.
5.19
The committee considers that evidence-based support services, valued by Government and matched with a focus on early intervention and prevention, are fundamental to improving the life circumstances of individuals, families and communities.
5.20
The committee strongly encourages the Commonwealth Government to invest in wraparound support services, guided by local needs, in order to make meaningful headway in addressing entrenched disadvantage. The committee considers that this is necessary to support the most vulnerable cohorts in Australian communities.
Technology that is fit for purpose
5.21
The committee acknowledges the evidence from submitters highlighting the limited functionality and inferior technology of the BasicsCard, particularly when compared to that of the CDC technology. In doing so, however, the committee also acknowledges that some CDC participants found the CDC difficult to use. Additionally, the committee recognises the feedback indicating that some individuals may prefer the simple and familiar technology of the BasicsCard.
5.22
The committee is mindful of the caveats constraining an upgrade to the BasicsCard technology. It understands that the BasicsCard is considered a ‘stored value card’ under the Social Security (Administration) Act 1999 and that to switch to a different product may require legislative change. The committee also acknowledges the significant lead times required to procure upgraded or new technology.
5.23
Without seeking to pre-empt the Government’s decision on the future of income management, the committee encourages the Department of Social Services and Services Australia to commence investigating avenues for upgrading the functionality of the BasicsCard in the short term.
5.24
Pending the path forward on income management, the committee also considers that in the longer term, the Government should look to explore options for a new technology to operationalise a tailored, voluntary income management tool that fulfils community expectations.
Abolition of the cashless debit card program
5.25
The committee welcomes the abolition of the cashless debit card program. It considers the reform to be the product of ongoing and sincere community consultation, and appropriate given the lack of evidence to show that the program, in its current form, delivered on its objectives.
5.26
The committee is aware that legislative change is not needed to end the CDC program. Owing to the sunset provision contained in the Social Security (Administration) Act 1999, the Government will not be able to operate the CDC program after 31 December 2022. However, the committee sees merit in the bill bringing forward the date that participants can leave the CDC program in order to allow for an orderly, staged transition process.
5.27
The committee recognises that the bill is only the first step to transition participants off the CDC. A further bill to address the transition for individuals who access income management arrangements after their exit from the CDC program will be introduced later in 2022, after extensive consultation with affected regions and communities.
5.28
The committee appreciates that the intention of the Government is to consult widely to ensure the transition process for CDC participants is safe, structured and well-supported.
5.29
Based on the evidence received from submitters, the committee considers it imperative that all CDC program participants understand the changes and have access to tailored, place-based and culturally appropriate support services to assist them with the transition process.
5.30
The committee has listened to the concerns raised in evidence about the risks present in transitioning participants off the CDC. It considers it vital that individuals, families and communities are not adversely impacted by the ending of the program.
5.31
To that end, the committee strongly encourages the Department of Social Services, Services Australia and the National Indigenous Australians Agency to continue to consult directly and in good faith with the impacted communities to ensure that appropriate and timely support is available as required.
5.32
The committee is reassured by evidence from the Department of Social Services and Services Australia that detailed implementation plans and communication strategies for each community are under development and will be continually refined to reflect feedback from ongoing consultations.
5.33
The committee is further reassured that remote servicing teams from Services Australia, including financial officers, will be out on the ground in community, to help individuals manage their affairs and navigate practical changes, such as redirecting payments and setting up deductions.
5.34
The committee also notes that Services Australia will work to identify individuals at risk or in hardship to ensure that they have access to referrals for social work support or financial counselling services.
Work of the Family Responsibilities Commission
5.35
The committee recognises the concerns raised by the Family Responsibilities Commission (FRC) in regard to the wording of items 20, 23, 26 and 38 of the bill.
5.36
The committee is mindful that, as currently drafted, the bill may unintentionally have an adverse impact on the FRC’s operations.
5.37
The committee recognises the unique nature of the FRC model of income management and its emphasis on community engagement. The committee acknowledges the calls from Cape York stakeholders that this model should be allowed to continue.
5.38
Based on the evidence from the Department of Social Services, the committee is satisfied that it is the intention of the Government to recognise and preserve the unique operations of the FRC.
5.39
The committee strongly urges the Government to work with the FRC in order to provide clarity on the impact of the bill. The committee also urges the Government to consider whether amendments to the bill are needed in order to ensure that the FRC can continue to operate effectively in accordance with its statutory responsibilities.
5.40
The committee recommends that the Commonwealth Government work with the Queensland Family Responsibilities Commission to address the concerns raised, including considering possible amendments to the bill, to ensure that the Commission can continue to operate effectively in accordance with its statutory responsibilities.
5.41
Subject to recommendation 1, the committee recommends that the bill be passed.
Senator Marielle Smith
Chair