✦ Plain-English Summary

Social Security (Administration) Amendment (Continuation of Cashless Welfare) 2020

What it does

The government is extending and formalising the "cashless welfare" system that restricts how welfare recipients can spend their payments. Instead of receiving cash, eligible people on certain benefits have a portion of their payments managed through a special card that can't be used for alcohol, gambling, or certain other goods. The bill changes language from calling it a temporary "trial" to a permanent "program" and pushes back the end date.

Why it matters

If you're on certain welfare payments, this could mean less control over how you spend your own money. The government argues it prevents harmful spending, but critics say it treats welfare recipients like they can't be trusted with cash—something other Australians don't experience.

Key details

• Who's affected: People on certain income support payments in participating areas, particularly those considered "vulnerable"
• The main change: The scheme was set to end on 1 July 2020, but this bill extends it to 1 January 2022 and makes it permanent for people already in the system
• How it works: Once you're on the cashless welfare scheme, you stay on it even if the rules change—you can't opt out unless you move areas or change your circumstances

Official Description

Amends the Social Security (Administration) Act 1999 to: remove the trial parameters to establish the Cashless Debit Card (CDC) as an ongoing program; establish the Northern Territory and Cape York areas as CDC program areas and transition income management participants in these areas to the CDC program in 2021; remove a current exclusion to enable people in the Bundaberg and Hervey Bay program area to voluntary participate in the CDC program; enable a voluntary participant to continue to volunteer for the CDC even if they no longer reside in a program area; enable the secretary to advise a community body when a person has exited the CDC program; enable the minister to determine decision-making principles for the purposes of determining whether a person can demonstrate reasonable and responsible management of the person's affairs; enable the secretary to review a wellbeing exemption or exit determination in certain circumstances and remove the determination as a result of such a review; enable the secretary to issue and revoke a notice informing a person that they are a CDC program participant; remove the requirement that an evaluation be conducted by an independent expert of a review of the CDC program; and extend the sunset date for income management in Cape York from 30 June 2020 to 31 December 2021.

Committee Referrals

Senate Community Affairs Legislation Committee; Senate Standing Committee for the Scrutiny of Bills; Parliamentary Joint Committee on Human Rights

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.