Remote NT communities will remain on the controversial BasicsCards

NT residents will be the overwhelming majority of Aussies on compulsory income management despite Federal Government changes to the Cashless Debit Card.

Aboriginal communities will remain on the controversial BasicsCard despite the Federal Government’s recent move to scrap income management.

Federal Labor heralded its move to repeal the cashless debit card, Indue, through amendments to the Social Security (Administration) Amendment Bill.

Northern Territory Council of Social Service said 27,000, mainly Aboriginal Territorians, would remain on compulsory income management.

“It was pleasing to see the new legislation passed in Federal Parliament and the Commonwealth Government honouring its election commitment,” NTCOSS chief executive Deborah Di Natale said.

“But (NT residents) will either enter back onto or remain on the BasicsCard program that quarantines (social security) payments, usually more than 50 per cent, and dates back to the Howard government’s 2007 NT Intervention.

“(It) remains a racist and punitive policy.

NTCOSS chief executive Deborah Di Natale said the organisation had urged the Federal Senate to repeal compulsory income management. Picture: Esther Linder

“When thousands of people in South Australia, Western Australia and Queensland (excluding the far north) exercise their free choice to decide whether or not to exit compulsory income management this week, a greater number of Territorians will not have that (same) choice.”

Ms Di Natale said overwhelming evidence showed income management over the past 15 years did nothing to reduce crime, alcohol, gambling or domestic violence.

She called on the Federal Government to fulfil its election promises and ensure BasicsCards became a voluntary basis, not compulsory.

“We acknowledged in our submission (to the Senate) the repeal of compulsory income management and replacement with a voluntary scheme in the NT must be managed with care as the current system is entangled with implications for payments including rent,” she said.

“However, that should not stop its immediate repeal.

“We remain committed to working with our stakeholders and the Federal Government on this issue.”

During the Federal Senate debate last week, NT Senator and Assistant Minister for Indigenous Affairs Malarndirri McCarthy passionately advocated for the end of the Liberal government’s Cashless Debit Cards.

She said the program was “flawed”.

“The previous government for nine years did no reviews whatsoever on the BasicsCard, yet this Senate did six inquiries on the cashless debit card, it shows where the priority was for this parliament,” Senator McCarthy said.

“There was no priority on the people of the Northern Territory (by the previous government). So why would we make a decision to do something with the BasicsCard when no work whatsoever was done by the previous government?”

In a statement, the Albanese Government said it was committed to working with Territory communities over the next 18 months to assess what “future income management” would look like.

“This is important work but we have to ensure we are consulting thoroughly and listening to communities,” the statement said.

The Federal Government has committed to distributing consultation and information in First Nations languages deploying dedicated translators to community.

Senator Jacinta Nampijinpa Price with Opposition MPs who oppose the Federal Government's proposed changes to the cashless debit card spoke to the media during a press conference in Parliament House in Canberra. Picture: NCA NewsWire/Gary Ramage,

NT Country Liberal’s Senator Jacinta Nampijinpa Price expressed concern over what this could mean for vulnerable people who relied on the program.

“Simply ripping it out from underneath vulnerable individuals is not good enough without at least some sort of proper transition in place,” she told media.

“We don‘t know what it’s going to do to them, what the consequences will be.”

Ms Price accused the government of not understanding the pressures of traditional Aboriginal culture and how the cashless debit card had helped people.

“What they don‘t understand is that your family has access to everything you own, we have a demand share economy,” she said.