Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2022
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT (REPEAL OF CASHLESS
DEBIT CARD AND OTHER MEASURES) BILL 2022
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Amanda Rishworth MP)
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT (REPEAL OF CASHLESS
DEBIT CARD AND OTHER MEASURES) BILL 2022
OUTLINE
This Bill will implement the government's election commitment to abolish the cashless
welfare arrangements (also known as the cashless debit card or CDC program) in
Part 3D of the Social Security (Administration) Act 1999 (Administration Act) and, as
an alternative, facilitate arrangements for individuals to enter or re-enter the income
management regime under Part 3B of that Act in appropriate cases
The Bill will also make consequential amendments to the A New Tax System
(Family Assistance) (Administration Act) Act 1999, the National Emergency
Declaration Act 2020 and the Social Security Act 1991 to reflect the repeal of Part 3D
and associated measures.
Around 17,300 existing CDC program participants, many of whom are First Nations
people, will be affected by these important reforms. The reforms are to be
implemented in two legislative tranches. This Bill abolishes the CDC program.
A further Bill, to be introduced later in 2022 after consultations with affected areas and
communities, will address the transition for individuals who access income
management arrangements after their exit from the CDC program.
Schedule 1--Amendments
Schedule 1 to the Bill has two parts, each with different commencement dates.
Part 1--Stage 1 Amendments
The key measures in Part 1 of Schedule 1 will:
• Establish a 'closure day', being the day that the Part 1 amendments
commence the process of abolishing the CDC program, and a 'repeal day',
being the day that Part 3D of the Administration Act is repealed and the CDC
program will cease in its entirety.
• Remove the sunset provision in section 124PF of the Administration Act, which
was to repeal cashless welfare arrangements on 31 December 2022. This is no
longer necessary as Part 3D of the Administration Act will now be repealed on
a date to be proclaimed, or the day after the 6 month period after the Bill
receives the Royal Assent, whichever is earlier. This will allow for a staged
approach for individuals transitioning from participation in the CDC program.
• Amend Part 3D of the Administration Act to prevent the Secretary from giving
notices making a person a program participant in the CDC program on or after
the closure day. This applies to all program participants.
• Amend Part 3D of the Administration Act to allow program participants to make
a request to the Secretary to cease being subject to the CDC program, and for
that cessation to be given effect within 7 days of the person's request. This
applies to all program participants.
• Amend Part 3B of the Administration Act to require classes of persons who exit
the CDC program in the Northern Territory, to enter or re-enter the income
management regime where they meet other specified criteria. This includes the
criteria related to child protection; vulnerable welfare payment recipients;
disengaged youth; long term welfare payment recipients; school enrolment;
school attendance; or other state or territory referrals. A class or classes of
persons will be determined by legislative instrument. This approach also allows
for a staged return to income management where necessary or appropriate.
• Provide that certain exits from the CDC program determined by the Secretary
due to a person's wellbeing requirements or their ability to reasonably and
responsibly manage their financial affairs cannot be revoked on or after the
closure day. This will prevent these exiting program participants from being
placed on compulsory income management. This measure applies to persons
who were a program participant on the day before the closure day under
section 124PGE of the Administration Act (due to their residence in the
Northern Territory).
• Make consequential amendments and include savings provisions with respect
to appropriation provisions for transitioning certain account credits and debits,
and to prevent internal and AAT review of decisions relating to issuing notices
to give effect to voluntary exits from cashless welfare arrangements.
Part 2--Stage 2 Amendments
Part 2 of Schedule 1 will repeal Part 3D of the Administration Act on a day to be fixed
by proclamation (or, if the Principal Act is not proclaimed, the day after the end of
6 months after the Act is given the Royal Assent). Abolishing the CDC program on a
date to be proclaimed will allow for a staged transition from the CDC program.
This staged approach will provide the opportunity for the government to put in place
supports for individuals transitioning from the CDC program.
Part 2 also makes consequential amendments to the Administration Act, the Social
Security Act, the Family Assistance Administration Act and the National Emergency
Declaration Act, to reflect the repeal of Part 3D of the Administration Act. There will be
some savings provisions, and the Minister will have a power to make rules, by
legislative instrument, with respect to matters of a transitional nature.
Financial impact statement
Abolishing the Cashless Debit Card has commercial implications for contractors. Due
to these commercial implications the financial impacts are not for publication. This is
consistent with the financial impacts disclosed in previous budget statements.
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT (REPEAL OF CASHLESS
DEBIT CARD AND OTHER MEASURES) ACT 2022
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
In this explanatory memorandum:
• AAT means the Administrative Appeals Tribunal established under
the Administrative Tribunals Act 1975.
• Administration Act means the Social Security (Administration) Act 1999.
• cashless welfare arrangements are also referred to as the cashless debit
card or CDC program.
• closure day means the day on which Schedule 1 to the Social Security
(Administration) Amendment (Repeal of Cashless Debit Card and Other
Measures) Act 2022 commences (see, in particular, Items 1 and 31 in Part 1 of
this Schedule).
• Family Assistance Administration Act means the A New Tax System (Family
Assistance) (Administration) Act 1999.
• National Emergency Declaration Act means the National Emergency
Declaration Act 2020.
• Principal Act means Social Security (Administration) Amendment (Repeal of
Cashless Debit Card and Other Measures) Act 2022.
• Queensland Commission is also referred to as the Family Responsibilities
Commission or the FRC.
• Social Security Act means the Social Security Act 1991.
Clause 1 sets out how the Principal Act is to be cited, that is, as the Social Security
(Administration) Amendment (Repeal of Cashless Debit Card and Other Measures)
Act 2022.
Clause 2 describes the commencement of the provisions in the Principal Act.
It provides a table setting out the commencement date of the various sections in, and
Schedules to, the Act.
• Sections 1 to 3 of the Act and anything in the Principal Act not elsewhere
covered by the commencement table, will commence on the day the Principal
Act receives the Royal Assent.
• Schedule 1, Part 1 of the Act will commence on the later of: (a) the day the
Principal Act receives the Royal Assent; and (b) 19 September 2022.
• Schedule 1, Part 2 of the Act will commence on a single day to be fixed by
Proclamation. However, if the provisions do not commence within 6 months
beginning on the day the Principal Act receives the Royal Assent, they will
commence on the day after the end of that period.
Clause 3 provides that legislation that is specified in a Schedule to the Principal Act
is amended or repealed as set out in the applicable items in that Schedule, and any
other item in a Schedule to the Principal Act has effect according to its terms.
Schedule 1--Amendments
Summary
This Schedule amends the Social Security Act, the Administration Act, the Family
Assistance Administration Act and the National Emergency Declaration Act to
implement the government's election commitment to abolish the cashless welfare
arrangements and allow exiting program participants to enter income management
arrangements, including on a voluntary basis.
Background
The cashless welfare arrangements were established by the former government in
2016 as a trial under Part 3D of the Administration Act and were expanded in 2020.
Reports by the Australian National Audit Office (ANAO) in 2018 and 2022 found there
was no evidence that the objectives of the cashless welfare arrangements were met.
Those objectives were to test whether restricted access to discretionary cash would
reduce habitual abuse and associated harm from alcohol, gambling and drugs, and
whether welfare arrangements are more effective with the involvement of community
bodies.
Having regard to community consultations and the ANAO reports, this government
formed the view that cashless welfare arrangements are discriminatory and unfair.
As a result, and through this Bill, this government will enable program participants to
exit compulsory cashless welfare arrangements as soon as practicable in 2022.
Upon exit, certain participants may be subject to mandatory income management
while others will be able to volunteer for income management if they decide to retain
restrictions on their ability to access welfare payments in cash.
Explanation of the changes
Part 1--Stage 1 Amendments
Part 1 of Schedule 1 of the Principal Act amends Parts 3B and 3D of the Administration
Act, to give effect to the Australian government's election commitment to abolish
cashless welfare arrangements and facilitate entry into income management in certain
cases. Part 3B of the Administration Act deals with the income management regime
for recipients of certain welfare payments while Part 3D establishes the cashless
welfare arrangements.
Part 1 provides for the first stage of amendments to Parts 3B and 3D of the
Administration Act, to facilitate voluntary exits from the cashless welfare arrangements
before Part 3D is repealed by the Stage 2 amendments in Part 2.
The amendments proposed by Part 1 of the Schedule will commence on the later of
the day after the Principal Act receives the Royal Assent or 19 September 2022.
Closure day and repeal day--definitions
Items 1 and 31 inserts a new term 'closure day' into the Definitions sections in
section 123TC of Part 3B, and subsection 124PD(1) of Part 3D, of the Administration
Act. Item 1 also inserts a new term 'repeal day' into the Definitions sections in
section 123TC of Part 3B.
The terms will simplify Parts 3B and 3D to provide terms that readily identify:
(a) the day (the closure day) on which cashless welfare arrangements will be
closed to new entrants and program participants may request to cease to be a
program participant, and
(b) the day (the repeal day) that cashless welfare arrangements are abolished due
to the repeal of Part 3D of the Administration Act and associated provisions.
To this end, the 'closure day' will be defined as follows:
closure day means the day on which Part 1 of Schedule 1 to the Social Security
(Administration) Amendment (Repeal of Cashless Debit Card and Other
Measures) Act 2022 commences.
In combination with section 3 of the Principal Act, the 'closure day' will be the later of
the day after the Principal Act receives the Royal Assent or 19 September 2022.
The 'repeal day' will be defined as follows:
repeal day means the day on which Part 2 of Schedule 1 to the Social Security
(Administration) Amendment (Repeal of Cashless Debit Card and Other
Measures) Act 2022 commences.
In combination with section 3 of the Principal Act, the 'repeal day' will occur on a single
day proclaimed by the Governor-General or, if proclamation does not occur within
6 months beginning on the day the Principal Act receives the Royal Assent, the day
after the period of 6 months following the Royal Assent.
Income management--child protection
Item 2 inserts new paragraph (i) into subsection 123UC(1) of the Administration Act,
which determines whether a person is subject to the income management regime
because, among other things, a child protection officer of a State or Territory has given
the Secretary a notice requiring that person be subject to the income management
regime under section 123UC.
This item will provide that a person who is identified in a child protection notice will be
subject to income management where, among other things, they were a program
participant on the day before closure day due to their Northern Territory residency
(under section 124PGE of the Administration Act), and being within a class or classes
of persons determined by the Minister, by legislative instrument, under subsection
123UC(3) of the Administration Act (see Item 3). This mechanism will facilitate
compulsory entry or re-entry into income management in the Northern Territory in
certain circumstances.
To fall within this item, the person or their partner will be an eligible recipient of a
category H welfare payment, that is, a person in receipt of a social security pension or
benefit, ABSTUDY, a service pension, an income support supplement or a veteran
payment.
Item 3 inserts new subsection 123UC(3) into the Administration Act, to allow the
Minister to make a legislative instrument to determine a class or classes of persons in
the Northern Territory who will compulsorily transition to income management due to
child protection concerns, that is, for the purposes of paragraph 123UC(1)(i)
(see Item 2).
It is appropriate to base entry or re-entry into income management for this group of
participants on a class or classes specified in a legislative instrument, as this will allow
transition from the CDC program in a way that is consistent with the needs of different
program participants in the Northern Territory. The transition might be implemented
on a geographic basis although other criteria could be applied in light of community
consultations. The legislative instrument determining a class or classes of persons will
be subject to disallowance by the parliament.
Income management--vulnerable welfare payment recipients
Item 4 inserts new paragraph (f) into subsection 123UCA(1) of the Administration Act,
which determines whether a person is subject to the income management regime due
to being a 'vulnerable welfare payment recipient', as determined in accordance with
section 123UGA of the Administration Act.
This item will provide that a person who is identified as being a vulnerable welfare
payment recipient will be subject to income management where, among other things,
they were a cashless welfare program participant on the day before closure day due
to Northern Territory residency and are within a class or classes of persons determined
by legislative instrument under subsection 123UCA(4) of the Administration Act
(see Item 7). This mechanism will facilitate compulsory entry or re-entry into income
management in the Northern Territory in certain circumstances.
To fall within this item, the person or their partner will be an eligible recipient of a
category H welfare payment, that is, a person in receipt of a social security pension or
benefit, ABSTUDY, a service pension, an income support supplement or a veteran
payment.
Items 5 and 6 make consequential amendments to paragraph 123UCA(2)(c) and
subsection 123UCA(2) of the Administration Act to account for the insertion of
paragraph 123UCA(1)(f) (see Item 4). Subsection 123UCA(2) provides that persons
who cease to live in an income management area specified by legislative instrument
may remain subject to the income management regime, provided other specified
requirements apply.
Item 7 inserts new subsections 123UCA(4) and (5) in the Administration Act.
New subsection 123UCA(4) will allow the Minister to make a legislative instrument to
determine a class or classes of persons who may transition to income management in
the Northern Territory, due to being a vulnerable welfare payment recipient, that is, for
the purposes of paragraph 123UCA(1)(f) (see Item 4).
It is appropriate to base entry or re-entry into income management for this group of
participants on a class or classes specified in a legislative instrument as this will allow
transition from the CDC program to proceed in a way that is consistent with the needs
of different program participants in the Northern Territory. For example, the transition
might be implemented on a geographic basis although other criteria could be applied
in light of community consultations. The legislative instrument determining a class or
classes of persons will be subject to disallowance by the parliament.
New subsection 123UCA(5) will provide that if a person was a program participant
under section 124PGE of the Administration Act on the day before the closure day,
and the Secretary makes a determination under subsection 124PHA(1) or 124PHB(3)
of the Administration Act on or after the closure day but before the repeal day so that
the person exits the CDC program, that person cannot enter the income management
regime under section 123UCA at any time after the determination is made.
The Secretary can make a determination under subsection 124PHA(1) that a person
is not a program participant if the Secretary is satisfied that being a program participant
would pose a serious risk to the person's mental, physical or emotional wellbeing. The
Secretary can make a determination under subsection 124PHB(3) that a person is not
a program participant if the Secretary is satisfied that the person can demonstrate
reasonable and responsible management of the person's affairs (including financial
affairs).
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end compulsory income
management in most CDC program areas other than the Northern Territory and Cape
York through legislative instruments made before Part 1 of Schedule 1 of the Principal
Act commences.
Income management--disengaged youth
Item 8 inserts a new paragraph (h) in subsection 123UCB(1) of the Administration Act,
which sets out who will be subject to the income management regime by virtue of
being a 'disengaged youth'. For the purposes of section 123UCB, a disengaged youth
is a person who, among other things:
• is an eligible recipient of a category E welfare payment, that is, youth allowance,
jobseeker payment, special benefit, pension PP(single) or benefit PP
(partnered),
• is at least 15 years of age and under 25 years,
• has a usual place of residence in an income management area (as determined
by legislative instrument under subsection 123UCB(4)).
This item will provide that a person who is identified as a disengaged youth, will
become subject to income management where, among other things, they were a
cashless welfare program participant on the day before closure day due to Northern
Territory residency and are within a class or classes of persons determined by
legislative instrument under subsection 123UCB(5) of the Administration Act
(see item 11). This mechanism will facilitate compulsory entry or re-entry into income
management in the Northern Territory in certain circumstances.
Items 9 and 10 make consequential amendments to paragraphs 123UCB(3)(c) and
(d) of the Administration Act to account for the addition of paragraph 123UCB(1)(h)
(see Item 8). Subsection 123UCB(3) provides that persons who cease to live in an
income management area specified by instrument may remain subject to the income
management regime provided other specified requirements apply.
Item 11 inserts new subsections (5) and (6) into section 123UCB of the Administration
Act. New subsection 123UCB(5) will allow the Minister to make a legislative instrument
to determine a class or classes of persons who may transition to income management
in the Northern Territory due to being a disengaged youth, that is, for the purposes of
paragraph 123UCB(1)(h) (see Item 8).
It is appropriate to base entry or re-entry into income management for this group of
participants in a class or classes specified in a legislative instrument, as this will allow
transition from the CDC program to proceed in a way that is consistent with the needs
of different program participants in the Northern Territory. For example, the transition
might be implemented on a geographic basis although other criteria could be applied
in light of community consultations. The legislative instrument determining a class or
classes of persons will be subject to disallowance by the parliament.
New subsection 123UCB(6) will provide that if a person was a program participant
under section 124PGE of the Administration Act on the day before the closure day,
and the Secretary makes a determination under subsection 124PHA(1) or 124PHB(3)
of the Administration Acton or after the closure day but before the repeal day so that
the person exits the CDC program, that person cannot enter the income management
regime under section 123UCB at any time after the determination is made.
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end compulsory income
management in most CDC program areas other than the Northern Territory and Cape
York through legislative instruments before Part 1 of Schedule 1 of the Principal Act
commences.
Income management--long term welfare payment recipients
Item 12 inserts a new paragraph (h) into subsection 123UCC(1) of the Administration
Act, which determines which people are subject to the income management regime
due to being a long term welfare payment recipient.
For the purposes of section 123UCC, a long term welfare recipient is a person, who
among other things:
• is an eligible recipient of a category E welfare payment being youth allowance,
jobseeker payment, special benefit, pension PP (single) or benefit
PP (partnered)
• is at least 25 years of age and under pension age
• has been in receipt of a category E welfare payment for at least 52 weeks during
the 104 week period before the test time, and
• has a usual place of residence in an income management area (as determined
by legislative instrument made under subsection 123UCC(4) of the
Administration Act).
New paragraph 123UCC(1)(h) will provide that a person who is a long term welfare
payment recipient will be subject to income management where, among other things,
they were a cashless welfare program participant on the day before closure day, due
to their Northern Territory residency (under section 124PGE of the Administration Act),
and being within a class or classes of persons determined by legislative instrument
under subsection 123UCC(5) of the Administration Act. This mechanism will facilitate
compulsory entry or re-entry into income management in the Northern Territory in
certain circumstances.
Items 13 and 14 amend paragraph 123UCC(3)(c) and subsection 123UCC(3)(d) of
the Administration Act, to account for the addition of 123UCC(1)(h) (see Item 12).
Subsection 123UCC(3) provides that persons who cease to live in an income
management area specified by instrument, may remain subject to the income
management regime provided other specified requirements apply.
Item 15 inserts a new subsection (5) and (6) into section 123UCC of the Administration
Act.
New subsection 123UCC(5) will allow the Minister to make a legislative instrument to
determine a class or classes of persons who may transition to income management in
the Northern Territory due to being a vulnerable long term welfare payment recipient,
that is, for the purposes of paragraph 123UCC(1)(h) (see Item 12).
It is appropriate to base entry or re-entry into income management for this group of
participants on a class or classes specified in a legislative instrument, as this will allow
transition from the CDC program to proceed in a way that is consistent with the needs
of different program participants in the Northern Territory. For example, the transition
might be implemented on a geographic basis although other criteria could be applied
in light of community consultations. The legislative instrument determining a class or
classes of persons will be subject to disallowance by the parliament.
New subsection 123UCC(6) will provide that if a person was a program participant
under section 124PGE of the Administration Act on the day before the closure day,
and the Secretary makes a determination under subsection 124PHA(1) or 124PHB(3)
of the Administration Act on or after the closure day but before the repeal day so that
the person exits the CDC program, that person cannot enter the income management
regime under section 123UCC at any time after the determination is made.
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end compulsory income
management in most CDC program areas other than the Northern Territory and Cape
York through legislative instruments before Part 1 of Schedule 1 of the Principal Act
commences.
Income management--school enrolment
Item 16 inserts new paragraph (ha) into subsection 123UD(1) of the Administration
Act, which determines who may be subject to the income management regime on the
basis that they or their partner have an eligible care child who is required to be, but is
not, enrolled at a primary or secondary school in a declared area. A person is an
eligible care child of another person at a particular time if they meet the requirements
of section 123UH of the Administration Act.
This item provides that such persons may be subject to income management if, among
other things, they were a program participant on the day before closure day due to
their Northern Territory residency (under section 124PGE of the Administration Act)
and being within a class or classes of persons determined by legislative instrument
under subsection 123UD(4A) of the Administration Act (see Item 17). This mechanism
will facilitate compulsory entry or re-entry into income management in the Northern
Territory in certain circumstances.
To fall within this item, the person or their partner must be an eligible recipient of a
category H welfare payment, that is, a social security pension or benefit, ABSTUDY,
a service pension, an income support supplement or a veteran payment.
Item 17 inserts a new subsection (4A) and (4B) into section 123UD of the
Administration Act. New subsection 123UD(4A) will allow the Minister to make a
legislative instrument to determine a class or classes of persons who may transition
to income management in the Northern Territory due to school enrolment criteria, that
is, for the purposes of paragraph 123UD(1)(ha) (see Item 16).
It is appropriate to base entry or re-entry into income management for this group of
participants on a class or classes specified in a legislative instrument, as this will allow
transition from the CDC program to proceed in a way that is consistent with the needs
of different program participants in the Northern Territory. For example, the transition
might be implemented on a geographic basis although other criteria could be applied
in light of community consultations. The legislative instrument determining a class or
classes of person will be subject to disallowance by the parliament.
New subsection 123UD(4B) will provide that if a person was a program participant
under section 124PGE of the Administration Act on the day before the closure day,
and the Secretary makes a determination under subsection 124PHA(1) or 124PHB(3)
of the Administration Act on or after the closure day, but before the repeal day so that
the person exits the CDC program, that person cannot enter the income management
regime under section 123UD at any time after the determination is made.
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end most compulsory income
management in CDC program areas other than the Northern Territory and Cape York
through legislative instruments before Part 1 of Schedule 1 of the Principal Act
commences.
Income management--school attendance
Item 18 inserts new paragraph (ka) into subsection 123UE(1) of the Administration
Act, which sets out who may be subject to the income management regime due to the
existence of an unsatisfactory school attendance situation, in relation to a child who is
an eligible care child within the meaning of section 123UH of the Administration Act.
This item provides that such persons will be subject to income management where,
among other things, they are a cashless welfare program participant on the day before
closure day due to Northern Territory residency (under section 124PGE of the
Administration Act) and are within a class or classes of persons determined by
legislative instrument under subsection 123UE(5) of the Administration Act
(see Item 19). This mechanism will facilitate compulsory entry or re-entry into income
management in the Northern Territory in certain circumstances.
To fall within this item, the person or their partner an eligible recipient of a category H
welfare payment, that is, a social security pension or benefit, ABSTUDY, a service
pension, an income support supplement or a veteran payment.
Item 19 inserts new subsections (5) and (6) into section 123UE of the Administration
Act.
New subsection 123UE(5) will allow the Minister to make a legislative instrument to
determine a class or classes of persons who may transition to income management in
the Northern Territory due to school enrolment criteria, that is, for the purposes of
paragraph 123UE(1)(ka) (see Item 18).
It is appropriate to base entry or re-entry into income management for this group of
participants on a class or classes specified in a legislative instrument, as this will allow
transition from the CDC program to proceed in a way that is consistent with the needs
of different program participants in the Northern Territory. For example, the transition
might be implemented on a geographic basis although other criteria could be applied
in light of community consultations. The legislative instrument determining a class or
classes of persons will be subject to disallowance by the parliament.
New subsection 123UE(6) will provide that if a person was a program participant under
section 124PGE of the Administration Act on the day before the closure day, and the
Secretary makes a determination under subsection 124PHA(1) or 124PHB(3) of the
Administration Act on or after the closure day but before the repeal day so that the
person exits the CDC program, that person cannot enter the income management
regime under section 123UE at any time after the determination is made.
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end compulsory income
management in most CDC program areas other than the Northern Territory and Cape
York through legislative instruments before Part 1 of Schedule 1 of the Principal Act
commences.
Income management--Queensland Commission/Cape York
Item 20 amends paragraph 123UF(1)(b) of the Administration Act, which sets out who
may be subject to the income management regime in relation to the Queensland
Commission (also known as the 'Family Responsibilities Commission') which operates
under Queensland state law. In practice, this measure operates in the Cape York
region of Far North Queensland.
Under subsection 123UF(1), before a person becomes subject to the income
management regime at a particular time (the test time), the Queensland Commission
must give the Secretary a written notice requiring that person to be subject to the
regime. This item will insert the words "and on or after the closure day" after the phrase
'test time'. This will ensure that the Queensland Commission must issue a new notice
on or after the closure date to trigger entry or re-entry into the income management
regime for persons exiting the CDC program in Cape York.
To fall within this item, the person or their partner must be an eligible recipient of a
category P welfare payment, that is, a social security benefit, a social security pension
or ABSTUDY.
Item 21 amends paragraph 123UF(1)(f) of the Administration Act to omit the phrase
"nominee; and" and substitute "nominee.". This amendment is consequential to the
repeal of paragraph 123UF(1)(g) of the Administration Act (which currently limits the
test time to before 1 January 2022) (see Item 22), and will make paragraph (f) the final
criterion to be satisfied under subsection 123UF(1).
Item 22 repeals paragraph 123UF(1)(g) of the Administration Act, which stipulated that
the particular time in which a person is subject to the income management regime
(the test time), must occur before 1 January 2022. This is no longer applicable as
program participants who exit cashless welfare arrangements may be required to enter
or re-enter the income management regime after that date.
Item 23 amends paragraph 123UF(2)(c) of the Administration Act, which sets out who
may become subject to the income management regime where the Queensland
Commission has given the Secretary a notice indicating that a person be subject to
the income management regime. Before a person becomes subject to the income
management regime at a particular time (the test time), the Queensland Commission
must give the Secretary a written notice requiring that the person be subject to the
regime under this section.
This item inserts the phrase "and on or after the closure day" after the words
"test time". This will ensure that the Queensland Commission must issue a new notice
on or after the closure day to trigger entry or re-entry into the income management
regime for persons exiting the CDC program in Cape York.
To fall within this item, the person or their partner must be an eligible recipient of a
category R welfare payment, that is a service pension, income support supplement or
a veteran payment, but not an eligible recipient of a category P welfare payment (that
is, of a social security benefit or pension or ABSTUDY).
Item 24 amends paragraph 123UF(2)(g) of the Administration Act to omit the phrase
"nominee; and" and substitute it with "nominee.". This reflects the repeal of
paragraph 123UF(2)(h) which currently limits the test time to before
1 January 2022 (see Item 25), and will make paragraph (g) the final criterion to be
satisfied under subsection 123UF(2) of the Administration Act.
Item 25 repeals paragraph 123UF(2)(h) of the Administration Act, which stipulated that
the particular time in which a person is subject to the income management regime
(the test time), must occur before 1 January 2022. This is no longer applicable as
some people who exit cashless welfare arrangements may be required to enter or
re-enter the income management regime after that date.
Item 26 repeals subsection 123UF(4) of the Administration Act, which deals with the
relationship between Parts 3B and 3D of the Administration Act, and was originally
inserted to facilitate the transition from income management to cashless welfare
arrangements.
This item substitutes in a new subsection 123UF(4) which provides that that if a person
was a program participant under section 124PGE of the Administration Act on the day
before the closure day, and the Secretary makes a determination under subsection
124PHA(1) or 124PHB(3) of the Administration Act on or after the closure day but
before the repeal day so that the person exits the CDC program, that person cannot
enter the income management regime under section 123UF at any time after the
determination is made.
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end compulsory income
management in most CDC program areas other than the Northern Territory and Cape
York through legislative instruments before Part 1 of Schedule 1 of the Principal Act
commences.
Income management--State and Territory referrals
Item 27 inserts new paragraph (h) into subsection 123UFAA(1) of the Administration
Act, which determines who may be subject to the income management regime, due to
a referral by an officer or employee of a recognised State or Territory authority, in a
written notice to the Secretary requiring the person to be subject to the income
management regime under section 123UFAA.
This item will provide that a person who is the subject of a State or Territory referral
notice will be subject to income management where, among other things, they were a
cashless welfare program participant on the day before closure day due to their
Northern Territory residency (under section 124PGE of the Administration Act) and
are within a class or classes of persons determined by the Minister, by legislative
instrument under section 123UFAA(3) of the Administration Act (see Item 28).
This mechanism will facilitate compulsory entry or re-entry into income management
in the Northern Territory in certain circumstances.
This item applies to eligible recipients of a category H welfare payment, that is, a
person who is receiving a social security pension or benefit, ABSTUDY, a service
pension, an income support supplement or a veteran payment.
Item 28 inserts new subsections (3) and (4) into section 123UFAA of the
Administration Act.
New subsection 123UFAA(3) will allow the Minister to make a legislative instrument to
determine a class or classes of persons, who may transition to income management
in the Northern Territory due to a referral from an officer or employee of a recognised
Northern Territory authority, that is, for the purposes of paragraph 123UFAA(1)(h)
(see Item 27).
It is appropriate to base entry or re-entry into income management for this group of
participants in a class or classes specified in a legislative instrument, as this will allow
transition from the CDC program to proceed in a way that is consistent with the needs
of different program participants in the Northern Territory. For example, the transition
might be implemented on a geographic basis, although other criteria could be applied
in light of community consultations. The legislative instrument determining a class or
classes of persons will be subject to disallowance by the parliament.
New subsection 123UFAA(4) will provide that if a person was a program participant
under section 124PGE of the Administration Act on the day before the closure day,
and the Secretary makes a determination under subsection 124PHA(1) or 124PHB(3)
of the Administration Act on or after the closure day but before the repeal day so that
the person exits the CDC program, that person cannot enter the income management
regime under section 123UFAA at any time after the determination is made.
This bar to entering income management applies only to program participants under
section 124PGE of the Administration Act (that is, individuals who became a program
participant due to their Northern Territory residency), and not to other program
participants. This is appropriate as the intent is to end compulsory income
management in most CDC program areas other than the Northern Territory and Cape
York through legislative instruments before Part 1 of Schedule 1 of the Principal Act
commences.
Income management--Northern Territory
Item 29 repeals Subdivision E of Division 2 of Part 3B of the Administration Act, which
outlines the relationship of the income management regime and cashless welfare
arrangements (under Part 3D of the Administration Act) for Northern Territory program
participants. Due to the cessation of cashless welfare arrangements, Subdivision E of
Division 2 of Part 3B will become redundant.
Appropriation
Item 30 repeals paragraph 123ZN(1)(aa) of the Administration Act. This provision
states that the Consolidated Revenue Fund is appropriated to the extent necessary
for the purposes of making payments under paragraph 123UF(4)(a) or subsection
123UP(2) of the Administration Act. These provisions relate to the transfer of funds for
persons who transition from income management to cashless welfare arrangements
due, respectively, to being subject to a notice from the Queensland Commission or
being located in the Northern Territory. Such participants will no longer be transitioned
to cashless welfare arrangements due to their cessation.
Part 3D--CDC program closure measures
Item 31 inserts a definition of 'closure day' defined as the day on which Part 1 of
Schedule 1 of the Principal Act commences.
Item 32 repeals section 124PF of the Administration Act. This section currently
provides a sunset provision, which states that Part 3D of the Administration Act ceases
to have effect at the end of 31 December 2022. Section 124PF is no longer required
due to the repeal of Part 3D of the Administration under Part 2 of this Schedule, which
is expected to occur on a date to be proclaimed. This is required to ensure a smooth
and supported transition for CDC program participants at an appropriate time and
following community consultations.
CDC program transition--Ceduna area
Item 33 inserts subsections (7) to (11) into section 124PG of the Administration Act,
to close entry to cashless welfare arrangements and allow program participants to
request that they cease to be a program participant in the Ceduna area on or after the
closure day, but before the repeal day, when the cashless welfare arrangements
cease for all remaining participants.
More specifically:
• subsection 124PG(7) will prevent the Secretary from giving a person a notice
under subsection 124PG(4) stating that the person is a program participant in
the Ceduna area,
• subsection 124PG(8) will allow a person to make a request to the Secretary
that they cease to be a program participant under section 124PG (the request
cannot be revoked or withdrawn),
• subsection 124PG(9) provides that if a person makes a request under
subsection (8), the Secretary must give a notice to the person stating that they
cease to be a program participant, and that such notice must come into force
on a specified day not more than 7 days after the day on which the person
made their cessation request,
• subsection 124PG(10) provides that the notice will have the effect stated in the
notice with respect to the person's cessation as a program participant in
cashless welfare arrangements.
To avoid doubt, subsection 124PG(11) will confirm that a notice given under
subsection 124PG(9) is not a legislative instrument. This provision is merely
declaratory of the law.
CDC program transition--East Kimberley area
Item 34 inserts subsections (7) to (11) into section 124PGA of the Administration Act
to close entry to cashless welfare arrangements and allow program participants to
request that they cease to be a program participant in the East Kimberley area on the
closure day but before the repeal day when the cashless welfare arrangements cease
for all remaining participants.
More specifically:
• subsection 124PGA(7) will prevent the Secretary from giving a person a notice
under subsection 124PGA(4) stating that the person is a program participant in
the East Kimberley area,
• subsection 124PGA(8) will allow a person to make a request to the Secretary
that they cease to be a program participant under section 124PGA (the request
cannot be revoked or withdrawn),
• subsection 124PGA(9) provides that if a person makes a request under
subsection (8), the Secretary must give a notice to the person stating that they
cease to be a program participant, and that such notice must come into force
on a specified day not more than 7 days after the day on which the person
made their cessation request,
• subsection 124PGA(10) provides that the notice will have the effect stated in
the notice with respect to the person's cessation as a program participant in
cashless welfare arrangements.
To avoid doubt, subsection 124PGA(11) will confirm that a notice given under
subsection 124PGA(9) is not a legislative instrument. This provision is merely
declaratory of the law.
CDC program transition--Goldfields area
Item 35 inserts subsections (7) to (11) into section 124PGB of the Administration Act,
to close entry to cashless welfare arrangements and allow program participants to
request that they cease to be a program participant in the Goldfields area on or after
the closure day, but before the repeal day, when the cashless welfare arrangements
cease for all remaining participants.
More specifically:
• subsection 124PGB(7) will prevent the Secretary from giving a person a notice
under subsection 124PGB(4) stating that the person is a program participant in
the Goldfields area,
• subsection 124PGB(8) will allow a person to make a request to the Secretary
that they cease to be a program participant under section 124PGB (the request
cannot be revoked or withdrawn),
• subsection 124PGB(9) provides that if a person makes a request under
subsection (8), the Secretary must give a notice to the person stating that they
cease to be a program participant, and that such notice must come into force
on a specified day not more than 7 days after the day on which the person
made their cessation request,
• subsection 124PGB(10) provides that the notice will have the effect stated in
the notice with respect to the person's cessation as a program participant in
cashless welfare arrangements.
To avoid doubt, subsection 124PGB(11) will confirm that a notice given under
subsection 124PGB(9) is not a legislative instrument. This provision is merely
declaratory of the law.
CDC program transition--Bundaberg and Hervey Bay area
Item 36 inserts subsections (7) to (11) into section 124PGC of the Administration Act,
to close entry to cashless welfare arrangements and allow program participants to
request that they cease to be a program participant in the Bundaberg and Hervey Bay
area on or after the closure day, but before the repeal day, when the cashless welfare
arrangements cease for all remaining participants.
More specifically:
• subsection 124PGC(7) will prevent the Secretary from giving a person a notice
under subsection 124PGC(4) stating that the person is a program participant in
the Bundaberg and Hervey Bay area,
• subsection 124PGC(8) will allow a person to make a request to the Secretary
that they cease to be a program participant under section 124PGC (the request
cannot be revoked or withdrawn),
• subsection 124PGC(9) provides that if a person makes a request under
subsection (8), the Secretary must give a notice to the person stating that they
cease to be a program participant, and that such notice must come into force
on a specified day not more than 7 days after the day on which the person
made their cessation request,
• subsection 124PGC(10) provides that the notice will have the effect stated in
the notice with respect to the person's cessation as a program participant in
cashless welfare arrangements.
To avoid doubt, subsection 124PGC(11) will confirm that a notice given under
subsection 124PGC(9) is not a legislative instrument. This provision is merely
declaratory of the law.
CDC program transition--Queensland Commission (Cape York area)
Item 37 inserts new subparagraph (ca) into subsection 124PGD(1) of the
Administration Act. Subsection 124PGD(1) provides the elements required to be
satisfied in order for a person to be a program participant in the Cape York area.
Paragraph (c) states that written notice given under a law of Queensland from the
Queensland Commission to the Secretary requiring the person to be a program
participant under section 124PGD must be in force. The insertion of paragraph (ca)
further requires that this written notice must be given before closure day.
The effect of this is to close entry to cashless welfare arrangements in the Cape York
Area from the closure day.
Item 38 inserts new subsections (3) to (7) into section 124PGD of the Administration
Act to close entry to cashless welfare arrangements and allow program participants to
request that they cease to be a program participant in the Cape York area on or after
the closure day but before the repeal day when the cashless welfare arrangements
cease for all remaining participants.
More specifically:
• subsection 124PGD(3) will allow a person to make a request to the Secretary
that they cease to be a program participant under section 124PGD (and that
request cannot be revoked or withdrawn),
• subsection 124PGD(4) provides that if a person makes a request under
subsection (8), the Secretary must give a notice to the person stating that they
cease to be a program participant, and that such notice must come into force
on a specified day not more than 7 days after the day on which the person
made their cessation request, and
• subsection 124PGD(5) provides that the notice will have the effect stated in the
notice with respect to the person's cessation as a program participant in
cashless welfare arrangements.
To avoid doubt, subsection 124PGD(6) will confirm that a notice given under
subsection 124PG(9) is not a legislative instrument. This provision is merely
declaratory of the law.
Subsection 124PGD(7) clarifies the relationship between section 124PGD and Part 3
of the Administration Act (dealing with the income management regime), to ensure
that a person who transitions to income management on or after the closure day under
section 123UF, ceases to be a program participant at and after that transition time.
CDC program transition--Northern Territory
Item 39 inserts subsection (7A) into section 124PGE of the Administration Act, to close
entry into cashless welfare arrangements in the Northern Territory. Subsection
124PGE(5) states that the Secretary may give a person a written notice stating that a
person is a program participant under this section. Subsection 124PGE(7A) will
provide that the Secretary cannot give a written notice under subsection 124PGE(5)
on or after the closure day.
Item 40 inserts subsections (9) to (12) into section 124PGE of the Administration Act,
to allow program participants to request that they cease to be a program participant in
the Northern Territory on the closure day, but before the repeal day when the cashless
welfare arrangements cease for all remaining participants.
More specifically:
• subsection 124PGE(9) will allow a person to make a request to the Secretary
that they cease to be a program participant under section 124PGE (the request
cannot be revoked or withdrawn),
• subsection 124PGE(10) provides that if a person makes a request under
subsection (8),the Secretary must give a notice to the person stating that they
cease to be a program participant, and that such notice must come into force
on a specified day not more than 7 days after the day on which the person
made their cessation request,
• subsection 124PGE(11) provides that the notice will have the effect stated in
the notice with respect to the person's cessation as a program participant in
cashless welfare arrangements.
To avoid doubt, subsection 124PGE(12) will confirm that a notice given under
subsection 124PGE(10) is not a legislative instrument. This provision is merely
declaratory of the law.
CDC program transition--closure of voluntary CDC program participation
Item 41 inserts subsection (1A) into section 124PH of the Administration Act.
Section 124PH provides for voluntary participation in cashless welfare arrangements.
Subsection (1) states that a person may notify the Secretary orally or in writing that
they wish to be subject to cashless welfare arrangements, if they satisfy the applicable
criteria. New subsection (1A) will provide that a person cannot give the Secretary
notice that they wish to be subject to cashless welfare arrangements on or after the
closure day. This is needed to ensure that people to do not enter cashless welfare
arrangements on or after the closure transition has commenced.
CDC program transition--exit of persons whose mental, physical or emotional
wellbeing at serious risk
Item 42 inserts new subsection (6) into section 124PHA of the Administration Act.
Section 124PHA sets out the circumstances in which the Secretary must determine
that a person will not be a program participant, because that would pose a serious risk
to the person's mental, physical or emotional wellbeing and, where certain State or
Territory officers or employees, seek reconsideration of such a determination, allowing
such determinations to be revoked. New subsection 124PHA(6) will provide that the
Secretary will not be able to revoke a determination made under subsection
124PHA(1) on or after the closure day.
This item does not apply in the Cape York area, as subsection 124PHA(5) states that
a determination under subsection 124PHA(1) has no effect in relation to section
124PGD, that is, in respect of program participants in the Cape York area. It will apply
to all other program participants.
CDC program transition--exit of persons who can responsibly manage their affairs
Item 43 inserts new subsection (11) into section 124PHB of the Administration Act.
Section 124PHB allows certain program participants to exit cashless welfare
arrangements under sections 124PG, 124PGA, 124PGB, 124PGC or 124PGE of the
Administration Act. Under section 124PHB, exits from the CDC program can occur in
two situations. This item deals with the first of those situations (set out in subsection
124PHB(3)), being where the Secretary is satisfied that the person can demonstrate
reasonable and responsible management of the person's affairs (including financial
affairs) and, accordingly, determines that the person is not a program participant.
New subsection 124PHB(11) will provide that the Secretary cannot, on or after the
closure day, revoke a determination made under subsection 124PHB(3) that a person
is not a CDC program participant, because they can responsibly manage their own
affairs. This is the case regardless of when the determination was made. The purpose
of this provision is to prevent re-entry into cashless welfare arrangements on or after
the closure day.
Section 124PHB and this item relate to program participants under measures relating
to the Ceduna (section 124PG), East Kimberley (section 124PGA), Goldfields
(section 124PGB) and Bundaberg and Hervey Bay areas (section 124PC), and the
Northern Territory (section 124PGE).
Consequential changes to internal review powers
Item 44 repeals paragraphs 127(4)(aa) of the Administration Act. This paragraph
states that the Secretary may not review a decision to make a payments to the credit
of a welfare restricted bank account of person who has transferred from income
management to cashless welfare arrangements due to a notice from the Queensland
Commission (Cape York area) (123UF(4)(a) of the Administration Act) or because they
are located in the Northern Territory (123UP(2) of the Administration Act). As such,
decisions will not be made on and from the closure day and this provision will be
redundant.
Item 45 inserts a new paragraph (ad) in subsection 127(4) of the Administration Act.
This paragraph states that the Secretary may not review a decision to give notice to a
person who has made a request to the Secretary to cease being a cashless welfare
participant in the Ceduna area (124PG(9), see Item 33), the East Kimberley area
(124PGA(9), see Item 34), the Goldfields area (124PGB(9), see Item 35), the
Bundaberg and Hervey Bay area (124PGC(9), see Item 36), the Queensland
Commission (Cape York area) (124PGD(4), see Item 38) or the Northern Territory
(124PGE(10), see Item 40).
Decisions by the Secretary to give notices under these new subsections are
compulsory, and have the effect that the person will cease to be a program participant
as triggered by that person's own request. Accordingly, these decisions are not
appropriate for review.
CDC program transition--consequential changes to AAT review powers
Item 46 repeals paragraphs 144(l), of the Administration Act. This paragraph states
that the AAT may not review a decision to make a payments to a person transferring
from income management to cashless welfare arrangements due to being affiliated
with the Queensland Commission (123UF(4)(a)) or located in the Northern Territory
(123UP(2)). As such, decisions will not be made from the closure day and this
provision will be redundant.
Item 47 inserts a new paragraph (lc) in section 144 of the Administration Act. This
paragraph states that the AAT may not review a decision to give notice to persons
who make a request to the Secretary to cease being a cashless welfare participant in
the Ceduna area (124PG(9), see Item 33), the East Kimberley are (124PGA(9),
see Item 34), the Goldfields area (124PGB(9), see Item 35), the Bundaberg and
Hervey Bay area (124PGC(9), see Item 36), the Queensland Commission (Cape York
area)(124PGD(4), see Item 38) or the Northern Territory (124PGE(10), see Item 40).
Decisions by the Secretary to give notices under these sections are compulsory, and
have the effect that the person will cease to be a program participant as triggered by
that person's own request. Accordingly, these decisions are not appropriate for review.
Savings
Item 48 inserts saving provisions into the Administration Act.
Sub-item 48(1) provides that subsections 123UP(2) and (3) and paragraph
123ZN(1)(aa) of the Administration Act, as in force immediately before the
commencement of item 48, continue to apply on and after that commencement in
relation to a person who became a program participant under section 124PGE of the
Administration Act before that commencement.
This savings provision is needed to ensure that amounts are credited to welfare
restricted bank accounts, and income management records are debited, where a
transition to cashless welfare is underway at the closure day and that moneys are
appropriated for this purpose. This is needed even though the person will ultimately
transition out of cashless welfare at a later time.
Sub-item 48(2) provides that paragraphs 127(4)(aa) and 144(l) of the Administration
Act, as in force immediately before the commencement of item 48, will continue to
apply on and after that commencement in relation to a decision referred to in those
paragraphs that was made before that commencement.
This ensures that any decisions related to the transition to cashless welfare
arrangements involving the credit and debit of accounts and records, and the
appropriation, continue to not be subject to review either internally or the AAT after the
closure day.
Part 2 of Schedule 1--Stage 2 Amendments
Part 2 abolishes cashless welfare arrangements by repealing Part 3D of the
Administration Act. It also makes consequential amendments to affected
Commonwealth laws and applies appropriate savings and transitional provisions.
The Stage 2 Amendments follow a period in which people will be able to voluntarily
exit the CDC program. This staged approach will provide the opportunity for the
government to put in place supports and provide information for individuals
transitioning from the CDC program.
Part 2 commences on proclamation by the Governor-General. If commencement has
not been proclaimed within 6 months beginning on the day the Act receives the Royal
Assent, Part 2 will automatically commence on the day after the end of that period.
Commencement by proclamation ensures that there is adequate time to provide for a
staged and supported transition out of the CDC program, while retaining a definitive
end date for the cashless welfare arrangements.
Family Assistance Administration Act
Item 49 amends paragraph 66(2)(g) of the Family Assistance Administration Act,
which provides that family assistance payments are absolutely inalienable, whether by
way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or
otherwise. Paragraph 66(2)(g) provides that these payments have effect subject to
Parts 3B and 3D of the Administration Act. To reflect the repeal of Part 3D of the
Administration Act, this item will omit the phrase "Parts 3B and 3D" from paragraph
66(2)(g) of the Family Assistance Administration Act and substitute it with "Part 3B".
National Emergency Declaration Act
Item 50 repeals paragraph 10(zc) of the National Emergency Declaration Act, which
provides that section 124PJ of the Administration Act is a national emergency law for
the purposes of the National Emergency Declaration Act. Section 124PJ allows for the
splitting of restrictable welfare payments under cashless welfare arrangements, so as
to limit a program participant's ability to make cash withdrawals. With the repeal of
cashless welfare arrangements, paragraph 10(zc) of the National Emergency
Declaration Act will be repealed as it would become redundant with the repeal of
section 124PJ of the Administration Act.
Social Security Act
Inalienability of social security payments
Item 51 amends subsection 1061EK(1) of the Social Security Act, which provides
advance payments of social security entitlements under section 238 and Part 3B and
Part 3D of the Administration Act are absolutely inalienable , whether by way of, or in
consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.
Section 1061EK(1) of the Social Security Act ensures that welfare recipients are not
denied access to their social security payments, including through bankruptcy or by
assigning or charging their rights to the payments. With the cessation of cashless
welfare arrangements, this item will omit the words "Parts 3B and 3D" and substitute
"Part 3B" reflecting the repeal of Part 3D.
The references in subsection 1061EK(1) of the Social Security Act to section 238 of
the Administration Act, dealing with payments to the Commissioner of Taxation or the
Child Support Register, and Part 3B, dealing with income management, will be
retained.
Overpayments and debt recovery
Item 52 amends paragraph 1222(1)(ba) of the Social Security Act, which states that
Chapter 5 of that Act provides methods for recovery by the Commonwealth of debts
owed to the Commonwealth under Part 3B and Part 3D of the Administration Act. This
item will omit the phrase "Parts 3B and 3D" from table item 20 and instead refer to
"Part 3B" to reflect the repeal of Part 3D.
Item 53 amends table item 20 of column 2 in subsection 1222(2) of the Social Security
Act, which provides methods of recovery available for debts under Part 3B and Part 3D
of the Administration Act. This item will omit the phrase "Parts 3B and 3D" from table
item 20 and instead refer to "Part 3B" to reflect the repeal of Part 3D.
Items 54 and 55 amend paragraph 1230(1)(a) and subsections 1230C(1) and (2) of
the Social Security Act, which deal with debt recovery where a third party (a garnishee
debtor) is given a notice in respect of a debt due to the Commonwealth by another
person (the original debtor) under Part 3B or 3D of the Administration Act. In both
cases, the amendments will omit the words "or 3D" to reflect the repeal of Part 3D.
Item 56 amends paragraph 1234A(1)(a) of the Social Security Act, which allows a
consenting third party to agree to the Secretary deducting an amount from their social
security payment for the purposes of repaying another person's social security debt.
This item makes a consequential amendment to paragraph 1234A(1)(a), to omit the
reference to "Part 3D" of the Administration Act to reflect the repeal or Part 3D.
Item 57 amends subsection 1237AB(1) of the Social Security Act, which states that
the Secretary may, on behalf of the Commonwealth, decide to waive the
Commonwealth's right to recover debts arising from Part 3B or 3D of the
Administration Act, that are included in a class of debts specified by legislative
instrument. This item omits "Part 3D" from subsection 1234A(1) to reflect the repeal of
Part 3D.
Savings provision
Item 58 is a saving provision to ensure that any debts owed to the Commonwealth
under Part 3D of the Administration Act before the item commences, will continue to
be subject to the debt recovery provisions in Chapter 5 of the Social Security Act.
Those provisions will be saved as in force immediately before the item commences.
This savings provision will ensure that rights, liabilities and obligations in relation to
such debts are preserved.
Administration Act
Parts 3B and 3D of the Administration Act deal, respectively, with the income
management regime and cashless welfare arrangements. The repeal of the cashless
welfare arrangements will necessitate the repeal of Part 3D and consequential
amendments to Part 3B and other provisions of the Administration Act, due to their
interdependence with Part 3D. These are discussed below.
Protection of social security payments
Item 59 amends paragraph 60(2)(aa) of the Administration Act, which states that a
social security payment is absolutely inalienable, whether by way of, or in
consequence of, sale, assignment, charge, execution, bankruptcy or otherwise,
subject to the income management scheme and cashless welfare arrangements.
This item omits the phrase "Parts 3B and 3D" and substitutes "Part 3B" to reflect the
repeal of Part 3D.
Information notices to CDC program participants
Item 60 repeals section 70B of the Administration Act, which empowers the Secretary
to give information notices to program participants in the cashless welfare
arrangements. Those notices may require the person to inform the department about
certain events and changes of circumstances that have occurred or are likely to occur,
or to give one or more statements about a matter that might affect the operation or
prospective operation of Part 3D in relation to the person. With the cessation of
cashless welfare arrangements and repeal of Part 3D, this provision is no longer
required.
Definition of excluded Part 3B payment nominee
Item 61 repeals paragraph (b) of the definition of the term "excluded Part 3B payment
nominee" in section 123TC of the Administration Act (the Definition section for the
provisions dealing with the income management regime). This limb of the definition
currently prevents the Secretary from appointing a program participant under Part 3D
(who is themselves subject to bank account restrictions under cashless welfare
arrangements) from being a payment nominee for a person on income management.
This limitation is no longer required due to the repeal of Part 3D of the
Administration Act.
New paragraph (b) will be simplified to remove the reference to a Part 3B payment
nominee who 'is not a program participant under Part 3D'. The new definition of
"excluded Part 3B payment nominee" will be as follows:
excluded Part 3B payment nominee means:
(a) the Public Trustee (however described) of a State or Territory; or
(b) a Part 3B payment nominee who is not subject to the income
management regime.
Part 3B Income management regime transition consequential amendments
Item 62 repeals paragraph 123UC(1)(h) of the Administration Act, which establishes
who is subject to the income management regime because of a child protection notice.
Under section 123UC, if a person at a particular time (the test time), is not a trial
participant or a voluntary participant (within the meaning of Part 3D of the
Administration Act) for the purposes of cashless welfare arrangements, they may be
subject to the income management regime, in accordance with the child protection of
a relevant State or Territory and additional requirements. With the cessation of
cashless welfare arrangements, this requirement is no longer applicable.
Item 63 amends paragraphs 123UCA(1)(f), 123UCB(1)(h), 123UCC(1)(h),
123UD(1)(ha), 123UE(1)(ka) and 123UFAA(1)(h) of the Administration Act, each of
which sets the criteria for persons subject to income management under, respectively,
the following measures: vulnerable welfare payment recipients; disengaged youth;
long-term-welfare payment recipients; school enrolment; school attendance; and
State/Territory referrals. In each paragraph, the phrase "and on or after that day the
person has ceased to be program participant under that section" will be omitted. With
the cessation of cashless welfare arrangements, these provisions will become
redundant.
Repeal of cashless welfare arrangements in Part 3D
Item 64 repeals Part 3D of the Administration Act, which contains the substantive
provisions establishing cashless welfare arrangements. This repeal is one of the key
amendments in this Bill and lays the foundation for the other amendments even though
they may precede this item in time.
Decisions that are not reviewable by the Secretary and AAT
Item 65 repeals paragraphs 127(4)(ab), (ac) and (ad) of the Administration Act, which
specify some of the decisions that are not reviewable by the Secretary in the internal
review process. The paragraphs to be repealed relate to decisions, respectively, to
give program participant notices, to revoke program participant notices and to give
notices to a person allowing them to cease being a program participant (see Item 45).
With the cessation of cashless welfare arrangements, such decisions will no longer be
made.
Item 66 repeals paragraphs 144(la) and (lb) of the Administration Act, which specify
some of the decisions that are not reviewable by the AAT. The paragraphs to be
repealed relate to decisions, respectively, to give program participant notices, to
revoke program participant notices and to give notices to a person allowing them to
cease being a program participant (see Item 47). With the cessation of cashless
welfare arrangements, such decisions will no longer be made.
Information management obtaining information and documents
Item 67 amends paragraph 192(db) of the Administration Act. It removes the words
"or 3D" from the paragraph to reflect the fact that the Secretary no longer needs the
power to require a person to give information relevant to the operation of the cashless
welfare arrangements. This is due to the repeal of Part 3D of the Administration Act.
Item 68 repeals paragraph 195(1)(cc) of the Administration Act. It removes the ability
of the Secretary to require a person to give information about a class or classes of
persons to the department to facilitate the administration of Part 3D (cashless welfare
arrangements). The cessation of cashless welfare arrangements means this provision
is no longer necessary.
Savings and transitional provisions
Item 69 contains two savings provisions.
The first savings provision in sub-item 69(1), is intended to preserve the status of
certain decisions made under Part 3D of the Administration Act as decisions that are
not reviewable the Secretary on internal review or the AAT. To this end, sub-item 69(1)
provides that paragraphs 127(4)(ab), (ac) and (ad) and 144(la), (lb) and (lc) of the
Administration Act, as in force immediately before the commencement of this item,
continue to apply on and after that commencement in relation to a decision referred to
in those paragraphs that was made before that commencement.
The second savings provision in sub-item 69(2) provides that any legislative
instruments in force under sections 124PP(1) and 124PQ(2) of the Administration Act
as in force immediately before the savings item commences will continue in force on
and after commencement to the extent that the instrument deals with the closure of
welfare restricted bank accounts and the transfer of remaining funds in those
accounts. This is essential to ensure that the restricted funds of program participants
who exit cashless welfare arrangements can be managed and released as
appropriate.
Item 70 gives the Minister a power to, by legislative instrument, make rules prescribing
matters of a transitional nature (including by prescribing any savings or application
provisions) relating to amendments or repeals made by Part 2 of Schedule 1 of the
Bill. This is important so that if a transitional matter has been overlooked, these may
be dealt with by legislative instrument rather than delayed by further amendments.
Item 70 expressly prevents the Minister from making rules to:
(a) create an offence or civil penalty;
(b) provide powers of:
(i) arrest or detention; or
(ii) entry, search or seizure;
(c) impose a tax;
(d) set an amount to be appropriate from the Consolidated Revenue Fund under
an appropriation of the Principal Act;
(e) directly amend the text of the Principal Act.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SECURITY (ADMINISTRATION) AMENDMENT (REPEAL OF CASHLESS
DEBIT CARD AND OTHER MEASURES) ACT 2022
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in
section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Overview of the Bill
The Bill delivers on the Australian government's election commitment to abolish
cashless welfare arrangements. The Bill will also facilitate a transition to income
management arrangements in certain cases.
The Bill:
• enables more than 17,300 participants to transition from the CDC program
• retains the mechanism through which the Family Responsibilities Commission
(FRC) can continue to support community members in Cape York by
re-establishing the income management regime in that area
• enables the Minister, by legislative instrument, to determine a class or classes
of former CDC program participants who become subject to mandatory
income management.
First Nations people who are CDC program participants and other stakeholders have
called for a measured approach to transition to reflect the complex needs of the
participants and to mitigate any disruption to the ability to manage their money,
disbursements and ability to buy essential goods and services.
For this reason, transition arrangements will include an extensive communication
strategy and face-to-face engagement in CDC program areas working in collaboration
with local support services. These arrangements will enable former CDC program
participants to receive accurate information about their circumstances and options so
that the government can continue to improve outcomes for individuals and families in
these communities.
Human rights implications
This Bill engages the following human rights or freedoms:
• the rights of equality and non-discrimination
• the right to self-determination
• the right to an adequate standard of living, including food, water and housing
• the right to social security.
These rights and a number of other considerations are addressed in turn below.
Objectives
The objective of the Social Security (Administration) Amendment (Repeal of the
Cashless Debit Card and Other Measure) Bill 2022 is to deliver an election
commitment to abolish the CDC program through a staged transition.
General safeguards
A number of general safeguards that will help to protect human rights have been
incorporated into the proposal to abolish the CDC program and reform income
management.
Participants transitioned from the CDC program will be able to opt out of the program
on the day after the Bill is given the Royal Assent. As part of the abolition of the CDC
program, participants will be given assistance to engage with Centrelink officers to
seek additional information and support, including choosing to 'opt in' to voluntary
income management and set up Centrepay arrangements where there is a need or be
referred to available local services.
In June 2022, the Minister commenced consultations during her visit to communities
in Western Australia to determine the form of the transition from the CDC program and
the supports that communities and individuals will need during the transition and into
the future. Community consultations will continue throughout 2022 to explore the
future of income management and determine the types of supports that would benefit
communities. A further Bill, to be introduced after consultations with affected areas
and communities, will address transition for individuals and communities who access
income management arrangements after their exit from the CDC program.
The rights of equality and non-discrimination
The rights of equality and non-discrimination are provided for in a number of the seven
core international human rights treaties to which Australia is a party, most relevantly
the International Covenant on Civil and Political Rights (ICCPR) and the Convention
on the Elimination of All Forms of Racial Discrimination (the CERD). In particular,
article 5 of the CERD requires parties 'to prohibit and eliminate racial discrimination in
all its forms and to guarantee the right of everyone, without distinction as to race,
colour or national or ethnic origin, to equality before the law', notably in the enjoyment
of 'the right to ... social security and social services' (article 5(e)(iv)).
Discrimination involves impermissible differential treatment among persons or groups
that result in a person or a group being treated less favourably than others, based
on a prohibited ground for discrimination such as race. However, the UN Human
Rights Committee has recognised that 'not every differentiation of treatment will
constitute discrimination, if the criteria for such differentiation are reasonable and
objective, and if the aim is to achieve a purpose which is legitimate under the
Covenant'.
The right to equality and non-discrimination were not directly limited by the cashless
welfare arrangements, as the CDC program was not applied on the basis of race or
cultural factors. Locations for the CDC program were chosen based on objective
criteria, including high levels of welfare dependence and community harm. However,
the consequence of the arrangements has, historically, applied to a high proportion of
First Nations people, and attracted extensive criticism. Currently, around 49 per cent
of CDC program participants are First Nations people.
The rights to equality and non-discrimination are not affected by the abolition of the
CDC program and reform of income management. The removal of cashless welfare
arrangements will not apply on the basis of race or cultural factors. All CDC program
areas are included in the program removal.
Program participants, other than those who opt-out during stage one of this Bill, will
not be individually assessed to transition from the CDC program, just as they were not
individually assessed entering the CDC program. Subject to specific requirements of
each program area, generally people who resided in areas where the CDC program
operated, were receiving a specified payment and were of a certain age as specified
by instrument or legislation, became a CDC program participant. The same alike,
anyone residing in an existing CDC program area who receives an eligible welfare
payment, will be entitled to volunteer for income management should they choose,
and will not be limited to a particular minority group or a specific CDC program area.
The right to self-determination
Article 1 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) states that 'all peoples have the right of self-determination. By virtue of that
right they freely determine their political status and freely pursue their economic, social
and cultural development'.
The transition of program participants from the CDC program will not affect or interfere
with a person's right to freely pursue their economic, social or cultural development.
Under the CDC program abolition, people will able to spend the entirety of their welfare
payments on any goods or services, when and how they choose.
Further, there may be people who want to keep part of their welfare payments
quarantined, either for budgeting purposes or to protect welfare payments so others
are not able to access them. The income management regime will be amended to
allow people in existing CDC program areas to choose to volunteer for the program.
Although CDC program participants will be able to request the Secretary to cease their
CDC program participation, the FRC will be able to continue to place people on the
income management regime consistent with the practice that existed prior to the
introduction of the CDC program into the Cape York area in March 2021. Those
people who will be subject to income management in Cape York after the transition
from CDC program will be able to spend their restricted funds on any goods or services
that are considered to be 'priority needs'. This excludes expenditure on alcohol and
gambling. The limitation on these harmful products and services ensures that
vulnerable people have less ability to access and abuse them and will thereby be
protected from harm or violence associated with their use.
The government has consulted, and is continuing to consult, with communities that
are subject to the cashless welfare arrangements about the changes and their effect
on individuals and communities.
The Bill is consistent with the right of self-determination as it entitles people to have
control over their destiny and to be treated respectfully.
The right to an adequate standard of living, including food, water and housing
Article 11(1) of the ICESCR states that everyone has the right to 'an adequate
standard of living for himself and his family, including adequate food, clothing and
housing, and to the continuous improvement of living conditions' and that 'appropriate
steps' be taken to 'ensure realisation of this right'. Further to this, article 11(2) of the
ICESCR states that 'measures, including specific programmes,' should be taken in
'recognising the fundamental right of everyone to be free from hunger'.
The abolition of the CDC program does not limit the right to an adequate standard of
living for affected people. Once transitioned from the CDC program, former
participants will be able to access all welfare payments paid into their nominated
unrestricted bank account. The amendments made by this Bill will allow CDC program
participants to enjoy an adequate standard of living, particularly in relation to food,
housing, electricity and water supply, without the concern of whether or not they can
afford it due to the quarantining of a proportion of their social security payment.
Early community consultations from the government have highlighted the need for
existing support services to be extended beyond 30 June 2023 and expanded to assist
people once they have ceased to be on the CDC program. This would ensure that
support continues at existing levels to reflect the needs of participants transitioning
from the CDC program.
The reform of voluntary income management will involve new funding for expanded
wrap-around supports in CDC program areas. This will assist people once they have
transitioned from the CDC program and will act as a more cost effective and targeted
mechanism to support those experiencing crisis and disadvantage.
There will be initial community engagement in each region prior to transitions to:
• provide participants with information on the transition
• help participants understand the need to set up new direct debits to replace
those previously in place, or utilise Centrepay if they need assistance
scheduling payments
• inform participants on their option to volunteer for income management
• refer participants to local support services where needed.
Supports can be targeted to build skills, capacity, independence and resilience and
prepare people to become job-ready.
The right to social security
Article 9 of the ICESCR recognises 'the right of everyone to social security, including
social insurance'. The United Nations Committee of Economic, Social and Cultural
Rights (the UN Committee) has stated that implementing this right requires a country,
within its maximum available resources, to provide 'a minimum essential level of
benefits to all individuals and families that will enable them to acquire at least essential
health care, basic shelter and housing, water and sanitation, foodstuffs, and the most
basic forms of education'.
In current CDC program areas, the right to social security is limited only to the extent
that the participant may not use a proportion of their payment to purchase restricted
goods (that is, alcohol and gambling products or services), in areas where there has
been demonstrated high levels of adverse behaviours or community harm.
The amendments made by this Bill do not detract from the eligibility of a person to
receive welfare, nor reduce the amount of a person's social security entitlement.
Rather, the limitation on how and where CDC program participants' payments are
spent is reversed by ceasing the quarantined payment process.
Despite CDC program participants who reside in the Cape York region being able to
request the Secretary to cease their CDC program participation, they will transition
from the CDC program to income management if the FRC issues a notice to the
participant that they should be subject to the income management regime. Although
income management restricts what a person can spend with the quarantined part of
their social security payment, income management does not detract from a person's
eligibility to receive welfare, nor does it reduce the amount of a person's social security
entitlement. Rather, this type of arrangement provides a mechanism to ensure that
certain recipients of social security entitlements use a proportion of their entitlement
to acquire essential items.
Conclusion
The Bill is compatible with human rights. The abolition of the CDC program and the
reform of voluntary income management in CDC program areas will advance the
protection of human rights by giving individuals appropriate choice over how they
receive their welfare payments. As part of the transition, welfare payment recipients
will be provided with a range of supports that individuals can choose to use when, how
and in a way that suits them. The measures are reasonable, necessary and
proportionate to achieving the objectives of abolishing the CDC program and reforming
the income management regime in Australia.
[Circulated by the authority of the Minister for Social Services,
the Hon Amanda Rishworth MP]