Indigenous organisations and welfare advocates have blasted a government bill they say cements controversial cashless welfare policies that disproportionately affect First Nations people.
Labor abolished the cashless debit card that operated in several trial sites but has kept income management in the Northern Territory, where about 20,000 mostly Indigenous welfare recipients are forced on to the “basics card”.
The government has said it is consulting on the future of income management policies that date back to the NT intervention with a view to making them voluntary. In the meantime, it has created a new “smartcard” – similar to the cashless debit card – to replace the “outdated” basics card.
A bill being scrutinised by parliament transitions people on to the smartcard and hands powers to the social services minister to set income management policies.
On Monday, the committee heard strong criticism of the bill from the Central Land Council (CLC), the Aboriginal Peak Organisations Northern Territory (Apont) and the Arnhem Land Progress Aboriginal Corporation.
Dr Josie Douglas of the CLC said the council was “deeply concerned” about the new legislation. Douglas said the CLC met last month and reiterated its opposition to broad-based income management programs.
“How many times do we have to say it until the government listens to our voices?” Douglas said.
“This bill suggests that the voices of our delegates along with many other Aboriginal people and their representative organisations across the country continue to be ignored.”
Douglas said the CLC did not oppose the new smartcard technology for those who volunteer to have it but she said its introduction should be part of a transition to abolish compulsory income management.
Critics, including the Greens, claim the bill could see Labor – or a future Coalition government – further expand income management policies.
The inquiry heard concerns the bill handed expansion powers to the minister without a clear timeline for the end of compulsory income management.
The bill does not include a “sunset clause” that would lapse income management programs unless they were extended by parliament, as occurred under the cashless debit card.
Douglas said a sunset clause would “bring some comfort to Aboriginal Territorians who are disproportionately impacted by compulsory income management”.
Income management involves the quarantining of a proportion of welfare payments on to a debit card that cannot be used to withdraw cash or purchase alcohol or gaming products.
While Labor’s pledge to scrap the cashless debit card received significant attention during the election, its First Nations election policy platform also pledged to make other income management programs voluntary.
The Labor senator Marielle Smith, who is chairing the inquiry, noted the government’s “policy intent is to move away from compulsory income management”. She said there was ongoing consultation with communities on this question.
While there is limited academic evidence in support of the card, supporters told the inquiry its removal has worsened the situation in their communities.
Patrick Hill, president of the Shire of Laverton in Western Australia, said severe social issues including domestic violence and alcohol abuse had worsened since the card was withdrawn.
Hill said the card had to be compulsory because those who needed it would not volunteer.
Peter Craig, president of the WA Shire of Leonora, said local emergency services had reported an increase in hospital admissions.
Asked to respond to the criticism from Indigenous organisations, Hill said politicians had “tried everything” else and the card, though imperfect, had been effective. Craig read a letter to the committee from a local Aboriginal elder who he said supported the card.
The mayors clashed with the independent Indigenous senator Lidia Thorpe, who suggested their support for compulsory income management was discriminatory – claims they strongly rejected.
Australian National University Prof Matthew Gray, who was involved in a study of income management policies introduced through the NT intervention, said he was “horrified” by the legislation. He said the evidence showed broad-based income management policies had failed.
A University of Adelaide report, one of several commissioned by the Coalition, was inconclusive about whether the cashless debit card had reduced social harms, while the auditor general also lashed the former government for continuing it with little evidence.
Under questioning by the Greens senator Janet Rice, the Department of Social Services confirmed the bill would allow the minister to expand income management without legislation.
Patrick Boneham, from the social services department, said the clause was not “new” and simply replicated powers from past income management legislation.
He said any expansion could be disallowed by the Senate.
The Coalition, including the opposition leader, Peter Dutton, has attacked the government for abolishing the cashless debit card.
