Trials of the federal government’s cashless welfare card will be extended for another two years after it failed to convince the Senate to roll the highly-controversial scheme out permanently in designated communities.
On Wednesday night, the government made last-minute amendments to its legislation after key independent Senator Rex Patrick declared he would vote against the card’s permanent rollout, citing a lack of evidence the scheme was effective.
Centre Alliance Senator Stirling Griff abstained from voting on the amended legislation, which gave the government the votes it needed.
The amendments extended the card’s trials in Ceduna in South Australia, the Goldfields and East Kimberley regions of Western Australia, and Queensland’s Bundaberg and Hervey Bay.
They also permit welfare recipients in the Northern Territory to opt into the scheme. The government was previously seeking to force more than 20,000 people in the NT onto the cards from another income management scheme.
The cards quarantine up to 80 per cent of someone’s welfare payments so money can’t be spent on alcohol or gambling.
Labor, the Greens, academics and various human rights and legal groups have condemned it as an unproven and “racist” policy that disproportionately impacts Indigenous Australians.
Social Services Minister Anne Ruston said the government still believes the card should be permanent.
“The continuation of the cashless debit card program is in direct response to calls from community leaders who tell us that it is ensuring more money is being spent on essentials and supporting positive changes,” she said in a late-night statement.
“Our commitment to this program is on a permanent basis. But we recognise we have more work to do in the future to convince the parliament they should support this program on a permanent basis too.”
NT Senator Malarndirri McCarthy thanked her Labor colleagues, the Greens, Senator Patrick and independent Senator Jacqui Lambie for their opposition to the “horrendous piece of legislation”.
“I just want to say to all those Australians out there who’ve supported us: stay strong. We’re going to still keep this government accountable,” she said in a video posted to Twitter.
“We still want to say this cashless debit card gone for all Australians.”
Greens Senator Rachel Siewert said the vote’s result was “heartbreaking”.
“Centre Alliance have hoodwinked and mislead the people of South Australia and those on the cashless debit card. They’ve assured voters for weeks now they would not support this racist, punitive bill and tonight they flipped on that promise, devastating thousands,” she said.
“This is a shameful dirty deal. I am so sorry that this card is continuing.”
