On 21 June 2018, the Senate referred the Social Services Legislation Amendment (Cashless Debit Card Trial Expansion) Bill 2018 to the Senate Community Affairs Legislation Committee for inquiry and report.

Submissions were sought by 20 July 2018, with a report due on 14 August 2018.

The Bill amends the Social Security (Administration) Act 1999 to: expand the cashless debit card arrangements to a further trial site, the Bundaberg and Hervey Bay area, to run until 30 June 2020; specify the class of trial participants for the area and increase the total number of trial participants overall to 15 000; provide for an exception from the restrictive trade practices provisions of the Competition and Consumer Act 2010 for merchants that implement product level blocking systems to identify that a cashless debit card is being used for payment and, if any restricted products are being purchased, decline the transaction; and limit the use of the restricted portion of a payment to prevent the portion being used to obtain cash-like products which could be used to obtain alcohol or gambling.

Key issues

The report states that many submitters and witnesses noted the importance of reducing the social harms caused by alcohol, gambling and drug abuse, the key object of the bill. However, some submitters and witnesses raised concerns relating to the expansion of the cashless debit card trial to a new site and the operation of the card, including:

  • selection of the Bundaberg and Hervey Bay area as a trial site, the participant cohort for that trial site, and the extent to which the communities of that area were consulted;
  • operation of the cashless debit card; and
  • ongoing concerns about the cashless debit card scheme, which may have an impact on the new site, such as:
    • communication with participants;
    • monitoring and evaluation of current trials; and
    • human rights implications.

Notwithstanding these issues, the Senate Community Affairs Legislation Committee recommended that the bill be passed, noting that:

  • The committee notes the wide support for solutions to reduce the social harms caused by alcohol, gambling and drug abuse. However, the committee recognises that views continue to differ on whether the cashless debit card is the most appropriate and effective solution to reduce these social harms in the target communities.
  • The committee notes that there has been extensive consultation conducted in the Bundaberg and Hervey Bay area by the Department of Social Services and that a high level of community support has been fundamental to the proposed introduction of the cashless debit card to the area. The committee believes that the cashless debit card trial will address the community’s concerns about youth unemployment, intergenerational welfare, and families who need assistance in meeting the needs of their children in the region.
  • It is the committee’s view that the results of the independent evaluation have shown the cashless debit card to have had a positive effect on communities in existing trial sites. The committee acknowledges concerns about the evaluation process and recognises the significant steps being taken by the Department of Social Services to improve its evaluations in the future, including the appointment of a Chief Evaluator, following recommendations by the Auditor-General.
  • The committee also recognises the frustrations of some participants in existing trial sites who believe that communication about the cashless debit card scheme to date has not been clear or easy to understand. The committee is encouraged that the communications strategies employed by the Department of Social Services, particularly around the operation of cashless debit card, have been informed and improved by this feedback.
  • The committee acknowledges that this bill may limit a participant’s human rights. However, the committee remains satisfied that the cashless debit card scheme only limits those rights to the extent required to achieve the objective of reducing the social harms caused by alcohol, drugs and gambling.

Before Senate

The Senate held its second reading debate of the Social Services Legislation Amendment (Cashless Debit Card Trial Expansion) Bill 2018 on 22-23 August. Its status remains ‘Before Senate’.

(Source: Parliament of Australia)

 

ACOSS calls for Senate to reject cashless debit card legislation

The Australian Council of Social Service (ACOSS) has called for the Senate to reject the expansion of the cashless debit card policy, citing the lack of credible evidence available showing an improvement in people’s lives and the recent review by the Australian National Audit Office (ANAO).

“People are on unemployment and other payments because they are looking for paid work or caring for children. There is only one paid position available for every 8 applicants and restricting access to cash is not going to change this. The Parliament should instead focus on improving employment outcomes and opportunities for people across Australia, rather than punishing people for being on a low income”, emphasised ACOSS CEO Dr Cassandra Goldie.

(Source: Media release)

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