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.”
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 for 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.”
– AAP
