More than 17,000 people living in remote communities will soon come off cashless welfare cards after the Senate voted to scrap the scheme.
The upper house sounded the death knell for the controversial card after the Albanese government secured the votes of the Greens and key crossbenchers.
The cards quarantined up to 80 per cent of a welfare recipient's income, which could not be withdrawn in cash or spent on gambling or alcohol.
Labor and the Greens argued the cards were punitive and humiliating while the opposition claimed the welfare program helped curb drug and alcohol abuse.
The Senate sat late into the night on Tuesday to ensure the legislation could clear both houses this week, paving the way for welfare recipients to move off the card by October 4.
A protracted trial of the cashless welfare cards was due to finish at the end of this year.
Labor will introduce a voluntary welfare income management card by March next year.
Legislation empowers choice: Burney
Both Minister for Indigenous Australians Linda Burney and Senator Malarndirri McCarthy spoke on Tuesday about the legislation.
Ms Burney said the card “diminishes self-worth” and is “discriminatory and arbitrary”.
She said the government does not believe in mandatory income management.
“The measure is voluntary, if people want to stay on the cashless debit card ... that is their decision,” she said.
Minister for Indigenous Australians Linda Burney speaking on the legislation during question time. Source: Supplied
Senator McCarthy, speaking in the Senator, reminded Parliamentarians that there are ‘thousands of Australians out there, who do not want to be on this card”.
Ms McCarthy said the government took to the election with the intention to abolish the mandatory program due based on four years of inquiries and reports.
She said none of which could say the “CDC was working in such an effective way that it was reducing trauma, that it was reducing domestic violence, that it was reducing people’s ability to live a life free of all of that”.
“Let me remind you senators, that one of the reasons the CDC was introduced was that it was meant to do those things. It was meant to see a better quality of life for Australians,” she said.
Posting to social media, the senator said the coalition had caused “disrespect and shame” by “forcing Australians onto the failed” card.
She noted that the program ran for 6-years, costing $179 million dollars, with “no adequate evidence it worked”.
‘Far from perfect’
Independent senator David Pocock voted to scrap the card despite wanting the government to go further and abolish all income management
"This bill is far from perfect but is clearly needed and any significant delay in its passage will subject people to further distress," he told parliament.
Tasmanian senator Jacqui Lambie originally voted for the cashless welfare cards, hoping they would improve the lives of people experiencing substance abuse issues and family violence.
She then voted to scrap it after accusing the coalition of setting the card up to fail by not putting in place necessary support services.
Senator Lambie also attacked Labor for failing to outline an adequate transition plan to support people coming off the card.
"I've met those kids and those families. With or without the card they aren't getting the life they deserve," she said.
Northern Territory senator Jacinta Price said the government was ignoring the suffering of vulnerable children in favour of adults "controlled by addiction".
The Indigenous coalition senator said those responsible for abolishing the cards couldn't comprehend what it was like to "constantly have your income demanded from you by addicted relatives".
"This is fact. I live this culture," she said.
Country Liberal Party senator Jacinta Price making her maiden speech in the Senate chamber at Parliament House in Canberra, Source: AAP
