Federal Labor has reneged on its pre-election promise to end compulsory income management by introducing the听.
While supposedly voluntary, it reinstates the framework for a national expansion of income management and allows the social security minister to extend income management restrictions to new categories.
Labor had campaigned against the privately-run听Cashless Debit Card听(CDC) and promised to scrap it in government. The Senate passed the听Social Security (Administration) Amendment (Repeal of the Cashless Debit Card and other measures) Bill 2022 last听September which scrapped the Indue CDC, but retained a听BasicsCard听in some communities, to be administered by the Department of Social Services and Services Australia.
The BasicsCard can听听approved by the Department of Human Services. The CDC can be used at any outlet the Department has not blocked.
The new听听and related instruments,听which passed the House of Representatives on March 28,听reintroduces and locks in compulsory income management as part of the social security system.
The changes give the minister the power to extend income management restrictions to new locations. This means that even if current minister Amanda Rishworth decides not to do this, a future minister could.
While the new SmartCard does allow some communities to decide whether or not they go on income management, it does not give individuals the ability to opt-out.
People can be put on the SmartCard if their children have an 鈥渦nsatisfactory鈥 school attendance record, or if they are categorised as 鈥渄isengaged youth鈥 or 鈥渓ong-term welfare payment recipients鈥. They can also be put on the card if a state or Territory official, of a recognised authority, decides they should be, or if they voluntarily agree to it.
Greens social services spokesperson听听said on Twitter on March 28 that 鈥渢he only differences between Labor鈥檚 SmartCard & the CDC are its name and colour鈥.
鈥淚t鈥檚 an insidious bill that hugely expands the Minister鈥檚 power to roll out compulsory income management in new areas and allows the SmartCard to apply nationally, despite Labor鈥檚 campaign against CDC in opposition,鈥 Rice said.
Rice said people on the BasicsCard now can 鈥溾榲oluntarily鈥 go onto the new Indue SmartCard, but are under compulsory income management either way. It鈥檚 a very loose use of the term 鈥榲oluntary鈥 鈥 choose which compulsory card you want to go on.鈥
The Antipoverty Centre (AC) described the changes as 鈥渢he biggest expansion of cashless welfare since the introduction of the BasicsCard鈥.
It said the use of the term 鈥渧oluntary鈥 is 鈥渕isleading鈥. 鈥淭he government is saying a community will voluntarily introduce the scheme, but people will be听forced听onto the card. This is not a voluntary scheme,鈥 the AC said.
The Parliamentary Joint Committee on Human Rights on March 4听听on the new scheme which questioned why, if the government is intending to introduce a voluntary income management scheme, the changes 鈥渆xtend compulsory participation in the enhanced income management regime鈥.
Widespread criticism of income management cards has led to听the new law听also听including funding for community services in former CDC-administered areas 鈥 including mentoring programs, mental health services and employment support.
But income management programs disproportionately impact the poorest communities, including First Nations people, limiting their financial autonomy. Evidence also shows they have a particularly negative impact on women.
听noted last September that income management programs echo 鈥渢he overtly paternalistic motivations of earlier government efforts to control the incomes of Aboriginal people鈥 and 鈥渃ompound disadvantage and vulnerability鈥.
A听听by the Australian National Audit Office found that even after a five-year CDC trial, there was no evidence the card was working. It also found the cost to administer it was $170 million.
Meanwhile, Labor is still refusing to raise the rate of JobSeeker and other welfare payments, claiming that it cannot afford to.