Commonwealth of Australia Explanatory Memoranda

[Index] [Search] [Download] [Bill] [Help]

SOCIAL SERVICES LEGISLATION AMENDMENT (CASHLESS DEBIT CARD) BILL 2017

                          2016-2017-2018




    THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                             SENATE




SOCIAL SERVICES LEGISLATION AMENDMENT (CASHLESS DEBIT CARD)
                          BILL 2017




        ADDENDUM TO THE EXPLANATORY MEMORANDUM




                   (Circulated by the authority of the
     Minister for Social Services, the Honourable Dan Tehan MP)




                                                                  1
2
  SOCIAL SERVICES LEGISLATION AMENDMENT (CASHLESS DEBIT CARD)
              BILL 2017 EXPLANANTORY MEMORANDUM


This addendum responds to comments raised by the Senate Standing Committee
for the Scrutiny of Bills in Scrutiny Digest No. 12, dated 18 October 2017.

The Committee recommended that the information provided by the Minister to the
Committee be included in the Explanatory Memorandum.


NOTES

SCHEDULE 1 - AMENDMENTS

Remove the third paragraph 'This amendment does not remove ... ' and insert
the following new paragraphs:

This amendment does not remove the legislative safeguards protecting how, when
and where the cashless debit card can operate. It only removes a date beyond which
the program could not continue. The legislation continues to ensure that the program
can only be implemented in a location with the introduction of a disallowable
instrument.

Broadly, the use of delegated legislation such as legislative instruments allows the
Government, with appropriate parliamentary scrutiny, to determine the application of
the cashless debit card on a community-by-community basis.

Details such as participant numbers and start and end dates are dependent on
community needs, which are identified through strong engagement with the
community. The use of instruments allows Government to work more closely with
individual communities to tailor application of the cashless debit card to meet these
community needs, within the broader principles set out in the legislation. It also
allows those communities to make decisions about these arrangements in their own
time.

The principles around the cashless debit card set out in the primary legislation
include the objectives for trialling such arrangements, parameters for trial
participation and guidance on the split and usage of restricted welfare payments.

The selection of sites for the cashless debit card is guided by the objectives of the
primary legislation. The use of legislative instruments to specify a location and define
the details of how the program can operate in any particular location provides the
necessary flexibility to give effect to the objectives of the program in a chosen
location.

The legislation specifies which social security payments can trigger a participant for
the program, and that a specified trial area must be the 'usual place of residence' for
a participant in that location to be triggered.


                                                                                        3
The criteria for participation set out in the legislation are directly linked to the
objectives of the cashless debit card. Further criteria for participation within these
limitations can be specified through disallowable instruments to meet a particular
community's needs in addressing social harm.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Page 3 - Replace Paragraphs 3, 4 and 5, commencing "In March 2017 ... " with
the following:

The final independent evaluation of the Cashless Debit Card Trial by ORIMA
Research was released on 1 September 2017, and included results from the two trial
sites, Ceduna and the East Kimberley.

The evaluation found that the Cashless Debit Card has had a "considerable positive
impact" in the communities where it has operated. The evaluation also concluded
that the trial "has been effective in reducing alcohol consumption and gambling in
both trial sites and [is] also suggestive of a reduction in the use of illegal drugs", and
"that there is some evidence that there has been a consequential reduction in
violence and harm related to alcohol consumption, illegal drug use and gambling."

In particular, the evaluation reported the following findings:
        Of people surveyed who drank alcohol before the trial started, 41 per cent
         reported drinking alcohol less frequently (up from 25 per cent in the Wave 1
         survey, which was done approximately six months into the trial); 37 per cent
         of binge drinkers were doing this less frequently (up from 25 per cent at
         Wave 1).
        A decrease in alcohol-related hospital presentations including a 37 per cent
         reduction in Ceduna in the first quarter of 2017 compared with first quarter of
         2016 (immediately prior to the commencement of the trial).
        A 14 per cent reduction in Ceduna in the number of apprehensions under the
         Public Intoxication Act compared to the previous year.
        In the East Kimberley, decreases in the alcohol-related pick-ups by the
         community patrol services in Kununurra (15 per cent reduction) and
         Wyndham (12 per cent), and referrals to the sobering up shelter in
         Kununurra (8 per cent reduction).
        Qualitative evidence of a decrease in the number of women in
         East Kimberley hospital maternity wards drinking through pregnancy.
        Qualitative evidence of a decrease in alcohol-related family violence
         notifications in Ceduna.
        A noticeable reduction in the number of visible or public acts of aggression
         and violent behaviour. Nearly 40 per cent of non-participants perceived that
         violence in their community had decreased.
        People are now seeking medical treatment for conditions that were
         previously masked by alcohol effects.
        48 per cent of gamblers reported gambling less (up from 32 per cent at
         Wave 1).




                                                                                         4
   In Ceduna and surrounding local government areas (which covers a much
    bigger region than is covered by the card's operation), poker machine
    revenue was down 12 per cent. This is the equivalent of almost $550,000
    less spent on poker machines in the 12 month trial.
   The card has had "a positive impact in lowering illegal drug use" across the
    two sites.
   Of those who reported drug use before the trial started, 48 per cent reported
    using illegal drugs less often (up from 24 per cent at Wave 1).
   40 per cent of participants who had caring responsibility reported that they
    had been better able to care for their children (up from 31 per cent at
    Wave 1).
   45 per cent of participants have been better able to save more money (up
    from 31 per cent at Wave 1).
   Feedback that there has been a decrease in requests for emergency food
    relief and financial assistance in Ceduna.
   Merchant reports of increased purchases of baby items, food, clothing,
    shoes, toys and other goods for children.
   Considerable observable evidence being cited by many community leaders
    and stakeholders of a reduction in crime, violence and harmful behaviours
    over the duration of the trials.




                                                                                5