Compulsory income management implies First Nations people ‘cannot manage finances’, inquiry says

Minister for social services commits to committee recommendation for SmartCard, which quarantines 50% of income, to become voluntary

• Get our breaking news email, free app or daily news podcast

A Labor-led inquiry into compulsory income management has recommended the government abolish the scheme after receiving a large amount of evidence showing the compulsory SmartCard increases hardship, makes it difficult for women to flee violent relationships, and is discriminatory towards First Nations people.

Labor's SmartCard was introduced last year, and quarantines 50% of people's income, preventing users from spending money on tobacco, pornography, alcohol or gambling. Some users remain on the BasicsCard and its income management restrictions.

Sign up for Guardian Australia's breaking news email