Cashless debit card gets Pauline Hanson support

Scott Morrison is one vote short of making the controversial cashless debit card permanent in four trial sites after Pauline Hanson declared her support.

One Nation leader Pauline Hanson. Picture: Gary Ramage

Scott Morrison is one vote short of making the controversial cashless debit card permanent in four trial sites and moving another 26,000 people in the Northern Territory and Cape York onto the card, after One Nation leader Pauline Hanson declared it had left Indigenous communities better off.

In what will be a tough parliamentary battle for the Morrison government in the year’s final ­sitting fortnight, The Weekend Australian has confirmed Senator Hanson and her One Nation colleague Malcolm Roberts have offered crucial backing to the legislation.

But with Labor and the Greens opposed to the bill, Social Services Minister Anne Ruston will have to convince one more Senate crossbencher to vote with the government.

If the bill does not pass this year, existing trials in Ceduna (South Australia), the East Kimberley (Western Australia), Goldfields (WA) and the Bundaberg and Hervey Bay region (Queensland) of 11,910 people — the vast majority of them Indigenous in Ceduna and the East Kimberley — will stop operating.

People in the NT and Cape York who are on income management — about 25,943 — would also continue using the Basics­Card rather than the cashless debit card, which the government says is “more flexible and user-friendly”.

Independents Jacqui Lambie and Rex Patrick are undecided while Centre Alliance, which holds one Senate vote in Stirling Griff, would support a two-year extension of the trial sites.

The minor party wants access to data addressing the effectiveness of the scheme before considering whether the trials should become permanent.

“All Australians would expect if a person is receiving Centrelink payments and it’s a working age payment, they would be spending their money on the necessities of life and not alcohol and gambling,” Centre Alliance MP Rebekha Sharkie said.

“If you’re going to roll out the card you also need to ensure you provide the wrap around (support) services and the government hasn’t done that in any of the locations.”

Designed to reduce welfare-fuelled alcohol, drug and gambling abuse, the debit card, established under the Abbott government, allows people to buy groceries and pay rent but does not work at bottle shops or gambling venues, and it cannot withdraw cash.

A large majority of a person’s welfare payment — 80 per cent — goes on the card and 20 per cent goes into their bank account.

Senator Hanson said Indigenous Australians on the card had told her they were grateful because they no longer had family and friends asking them for money.

Prior to COVID-19, they had told her rates of domestic violence, drug and alcohol abuse had decreased.

She conceded “a lot of people will be upset with me” for supporting the bill, but said “sometimes you’ve got to make the tough decisions” in the interests of future generations.

“If that’s going to help these people, I’m all for it,” she said.

“There might be some hurt and pain along the way to adjust to it but they’ve still got 20 per cent of their money in their pocket.

“It might be a tough measure but it also sends out a message – this is taxpayers’ money, if you want the right to spend your money freely then go and get yourself a job,” she said.

Senator Ruston said communities at the trial sites had asked the government to make the scheme permanent.

“(This) will provide certainty to participants and the wider communities and allow for further investment to enhance the technology which sits around the CDC to improve user experience,” her spokeswoman said.

“The government is confident that welfare quarantining measures, which have been in place in various forms since 2007, have a positive impact on participants and the broader community.”