Labor accused of reintroducing cashless debit cards under SmartCard scheme

Senator Thorpe has accused Labor of "paternalistic racism" saying the "assimilation continues" after the return of a scheme similar to the former Cashless Debit Card.

Australian Greens Senator Dorinda Cox speaks during debate on the re-introduction of welfare management. Source: AAP / Lukas Coch/AAP Image

Cashless welfare cards have been officially abolished, but opponents claim the controversial scheme has returned under another name.

Under the new laws, those still on income management schemes will be able to use the SmartCard system, allowing access to tap-and-go transactions, online shopping and BPAY.

The laws passed the Senate on Thursday with support from the coalition.

The cashless debit card program, using the BasicsCard, was criticised for unfairly targeting and negatively impacting Aboriginal communities.

While the laws would see people going into income management not be issued with the BasicsCard, opponents say it would allow the government to expand the scheme.

Greens senator Dorinda Cox said the scheme was disproportionately affecting Indigenous people.

"The Greens have some serious concerns about this bill, which essentially is bringing back the cashless debit card just by another name called the SmartCard," she told the Senate.

This week, where we have passed a bill on a Voice to Parliament, this government are ... ignoring First Nations voices.

Cox's former Greens colleague and now independent Senator Lidia Thorpe.

"Labour has re-introduced income management. The racist basics card continues," she wrote on Twitter.

Senator Thorpe spoke in the Senate about her disappointment in the re-introduction of welfare management. Source: Twitter / Senator Lidia Thorpe

"The ration days continue. Assimilation continues. And we are meant to trust a government like this with listening to an advisory board? They don't even listen to themselves."

In a later post, Ms Thorpe accused Labor of "paternalistic racism".

It is estimated 20,000 people are on compulsory income management schemes.

The government has argued the SmartCard changes would allow those on income management to keep up with modern financial technology.

While the coalition backed the change, opposition senator Anne Ruston hit out at the government for its approach to phasing out the cashless debit card, arguing it has exacerbated social issues in communities where the scheme was in place.

"[The government has] tarnished themselves so badly they have disregarded the needs of communities," she told parliament.

"Leaders from cashless debit card sites, community leaders and Indigenous leaders, are saying 'please reinstate the cashless debit card and help us deal with the dysfunction and violence and alcoholism that we are now seeing again'.

"Since the card has been abolished in these communities, we've seen crime statistics double."