Thousands of Australians will begin moving off the controversial cashless debit card from next week, after amended legislation to abolish the card passed the Senate late last night.
From October 4, most people on the cashless debit card will be allowed to leave the program if they wish.
But tens of thousands of people, primarily in the Northern Territory, will continue to see their income managed for the foreseeable future.
The cashless debit card was introduced in 2016, and generally quarantines 80 per cent of a person's income so it cannot be spent on alcohol or gambling, or withdrawn in cash.
There are about 12,500 people currently on the card across four trial sites — East Kimberley and the Goldfields regions in WA, Ceduna in South Australia, and the Bundaberg-Hervey Bay region in Queensland.
From next Monday, they can opt-out of the cashless debit card program.
A further 4,300 people in the Northern Territory and Cape York will remain on the card, before a new compulsory income-management scheme is introduced next year.
The new card will eventually replace both the cashless debit card and the similar BasicsCard, which has been used in the NT since 2008.
More than 22,000 people in the NT are currently on the BasicsCard.
Once in place, the new card will see 50 per cent of a person's income quarantined.
It will also have new features built in, allowing people on the card to use tools like BPAY.
Those on the cashless debit card will transition to the new card from March 6 next year, while those on the BasicsCard will move over from July 1.
The government has said it eventually wants income management to be voluntary nationwide, but it wants to consult with communities before making that change.
The amended bill will return to the lower house on Wednesday where it will be passed, allowing the changes to take effect from next week.
Heated debate over card's abolition
The Senate sat until late on Tuesday night debating the legislation, prompting at times fiery exchanges across the chamber.
Liberal Senator Linda Reynolds said scaling back the card would have devastating consequences in the communities where it is currently in place.
"All I can say is shame on every one of you, because we know what will be happening out in communities if this passes," she said.
"It will be more grog, it will be more violence, it will be more rapes, it will be more abuse, it will be more child neglect, and it will be more murder and death.
"You cannot say you were not warned, you cannot say you did not know, and yet you continue to push this based on blind ideology. Shame on you all."
The Greens voted for the legislation, but criticised the government for not abolishing income management altogether.
The government adopted a Greens amendment, forcing it to report on services provided in communities transitioning away from the card.
Senator Janet Rice said the system was a proven failure.
"There is going to be ongoing, compulsory income management in far too many places across the country," she said.
"Despite the fact it has been shown to fail — it does not work, it does not address the social problems that it aims to address."
Questioned earlier in the week as to why income management is continuing for those in the NT, Social Services Minister Amanda Rishworth said there was more work to do.
"We have said that we in the long term want to see income management voluntary, but we do need to consult with communities when it comes to income management and we'll do so," she said.
"Our first priority of course is abolishing the cashless debit card.
"But over time, we will work with communities in the Northern Territory about what that transition looks like."
