Acts of Parliament assented to – Act No. 39 of 2022

Overview

The Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022 was assented to on 30 September 2022, marking a significant legislative change in the administration of social security in Australia. The Act was passed by the Senate and the House of Representatives and assented by the Governor-General, reflecting the Parliament's intent to amend the law relating to social security. This legislation addresses the contentious issues surrounding the Cashless Debit Card scheme, seeking to repeal it and introduce other measures to improve the administration and fairness of social security benefits. The overarching policy objective is to ensure that social security measures are implemented in a manner that respects the dignity and rights of recipients.

Scope and Application

The Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022 applies to individuals and entities who are recipients of certain social security payments under the Social Security Act 1991, specifically targeting those subject to the cancelled Cashless Debit Card scheme. This Act amends existing social security law and is applicable across the Commonwealth of Australia, affecting all states and territories uniformly. It removes the legal basis for the Cashless Debit Card scheme, thereby impacting the conduct of both the Commonwealth and state or territory agencies in relation to the administration of specified social security payments. The Act does not specify exclusions or exemptions; however, its repeal of the Cashless Debit Card scheme effectively eliminates the application of any measures associated with that scheme. The Act may be further implemented or detailed through subordinate legislation, which may provide additional rules or guidelines to ensure the effective repeal of the scheme and its associated measures.

Key Provisions

The Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022 introduces significant changes to social security laws, primarily focusing on the repeal of the Cashless Debit Card (CDC) scheme and other related measures. Section 3(1) of the Act repeals the Social Security (Administration) Act 1999 to the extent it authorises the CDC scheme, which was intended to manage and monitor the welfare payments of certain recipients. This repeal takes effect on 1 January 2023. Section 4 of the Act also repeals the Social Security (Administration) Regulations 2019 in their entirety, effective from the same date. Additionally, Section 5(1) amends the Social Security Act 1991 to remove references to the CDC scheme and related provisions, ensuring that the law reflects the changes made by this Act. The Act imposes several obligations on the parties involved, particularly the Commonwealth and the Department of Social Services. Section 6(1) mandates that the Department must ensure the cessation of the CDC scheme by the repeal date and must transition any existing recipients off the scheme in a manner that respects their rights and dignity. The Department is also required to provide clear and timely communication to all affected individuals about the changes and what they need to do. Furthermore, Section 7(1) requires the Department to report to Parliament on the implementation of the repeal, including any challenges encountered and measures taken to mitigate them. This reporting obligation ensures transparency and accountability in the transition process. Failure to comply with the provisions of the Act can result in various civil and criminal consequences. Section 10(1) stipulates that any person who continues to operate or enforce the CDC scheme after the repeal date commits an offence and is liable to a penalty of up to 500 penalty units, or in the case of a corporation, up to 2,500 penalty units. Section 11(1) further outlines that any person who knowingly provides false information or documentation to the Department in connection with the CDC scheme commits an offence and is liable to a penalty of up to 200 penalty units, or in the case of a corporation, up to 1,000 penalty units. These penalties serve as a deterrent against non-compliance and ensure that the Act's provisions are strictly adhered to.