Cashless debit card debate reignites after a university review into its removal highlights social harm
ABC News
July 9 2024


In short:Debate has flared again over the cashless debit card off the back of a review into its removal.
The University of Adelaide report highlighted concerns about increased alcohol abuse and gambling after the income management scheme was scrapped.

What's next?: The Federal Opposition is calling for the card to be reinstated, but Labor says it's focused on delivering social services.
There are renewed calls to reinstate a controversial income management scheme, which aimed to improve the lives of First Nations people, as an academic review fuels fresh debate about its effectiveness at reducing social harm.

The cashless debit card (CDC) was a signature policy of the former Coalition government and was rolled out in trial sites across Australia in 2016, in particular in areas with high Indigenous populations.

The card quarantined 80 per cent of a person's welfare, so it could not be used for alcohol, gambling or cash withdrawals.

The latest academic review by the University of Adelaide looked at the first four trial areas: Ceduna and surrounds, the East Kimberley, the Goldfields in WA and the Bundaberg and Hervey Bay region.

It found, while most users were happy to be rid of the card, the majority of stakeholders, notably in the WA and SA trial sites, were disappointed the scheme ended, highlighting impacts on social issues such as alcohol abuse, gambling, child neglect, violence and community safety.


The card has long divided major political parties, community leaders and its users. It was scrapped by Labor in 2022, who argued it was ineffective.

Since its introduction, the card has fuelled a philosophical battle between those who felt it unfairly stigmatised Indigenous people and others who believed the need to protect children, families and residents from social harms outweighed human rights concerns.

The card has been plagued by criticism over a lack of consultation and rigorous and reliable evidence.   :(

A Commonwealth audit in 2022 found the Department of Social Services had not demonstrated the program was meeting its objectives, arguing its approach to monitoring and evaluation was inadequate.

Concern social problems worsened after removal
Anonymous stakeholders from the East Kimberley region raised serious concerns in the report about increases in alcohol abuse and gambling following the card's end.

They described children not being fed or clothed properly, missing school and being out on the streets unsupervised at night.

One anonymous stakeholder told researchers the impact was immediate.

"The gambling, the alcohol, violence on the street. It's all back," they said in the review.

Fears the quietest won't be heard in Labor's new welfare plan
The Albanese government has scrapped the cashless debit card which locked up 80 per cent of people's welfare money. In its void, communities have a delicate tightrope to walk.


Read more
Stakeholders interviewed for the report included Indigenous leaders, business owners, and representatives from police, child protection, education, health and Aboriginal organisations.

A card user spoke about the harm they saw to children.

"You see people have [drinks] every day, [past CDC participants] got no money for food and the kids start going hungry here," they said in the report.

But while the review found some evidence of increased hospital admissions in the East Kimberley and Goldfields, WA Police data showed no clear trends.

The report also noted other factors could be fuelling social problems including housing shortages and cost-of-living pressures.

Indigenous user glad to see back of the card
Kununurra resident and former card user Rozanne Bilminga told the ABC she was happy to see it go and felt its removal had not made a big difference in her community.

The Miriwoong woman said there were times when it left her short of cash.

"I've been with the debit card in the tyre shop … [they said] 'sorry we don't take that,' they told me you need cash," she said.

"I hope it doesn't come back to us again."

Senior Miriwoong man David Newry said while the card helped young mothers care for their children it also reminded Indigenous people of being disempowered during the 'station days'.

"Took us back to the heydays, where people were getting rations," he said.

"The older generation, mainly, that's what they thought ... things were being withheld without their consent."

He said more education around substance abuse was a better alternative to the card's reintroduction.

An Aboriginal man with a white beard stares at the camera
David Newry says the card reminded older Indigenous people of being paid rations on cattle stations.   
Calls for immediate return   :(
Shadow Social Services Minister Michael Sukkar said the University of Adelaide review showed the card should be reinstated immediately.

The cashless welfare card idea, belongs in the rubbish bin.   :(

That old report from the University study highlighted how kids were getting better fed and had more clothing bought for them when the card was in place.

There were warnings about a return to child neglect when the card was stopped.

Sure enough, back to the same old drunken spending and child neglect as before.

The woke brigade have absolutely no idea.

"But while the review found some evidence of increased hospital admissions in the East Kimberley and Goldfields, WA Police data showed no clear trends."

So the increased admissions was not from police. So what. ::)

whiteknight wrote on Jul 10^th, 2024 at 4:31am:

The cashless welfare card idea, belongs in the rubbish bin.   :(

If you don't want a cashless welfare card get a job ;)

The dole was never meant to be a lifestyle choice

Quote:

The cashless debit card (CDC) was a signature policy of the former Coalition government

... as was RoboDebt

'nuff said !



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Baronvonrort wrote on Jul 10^th, 2024 at 5:30pm:

If you don't want a cashless welfare card get a job ;) The dole was never meant to be a lifestyle choice

So, if the Liberals win next years Federal election and they reinstate the cashless welfare card what do you suggest age pensioners do if they have to use the card as well but they don't want to?

When the Liberals were 'toying' with the idea of the card before they lost the last Federal election rumours were going around that all welfare recipients were going to be put on the card eventually, including age pensioners.

I'm pretty sure my 94 year old aunt wouldn't be too happy with the card. What sort of job should she apply for?

Carl D wrote on Jul 10^th, 2024 at 6:06pm:

Baronvonrort wrote on Jul 10th, 2024 at 5:30pm: If you don't want a cashless welfare card get a job ;) The dole was never meant to be a lifestyle choice So, if the Liberals win next years Federal election and they reinstate the cashless welfare card what do you suggest age pensioners do if they have to use the card as well but they don't want to?

Cashless welfare was for the unemployed.

Pretty sure pensioners were getting put on the card.

Baronvonrort wrote on Jul 10^th, 2024 at 6:22pm:

Cashless welfare was for the unemployed.

Yes.

To start with.

But, knowing governments the way I (and many other people) do, I am absolutely certain it would eventually be 'expanded' to include everyone who gets any sort of payment from Centrelink, including age pensioners.

I don't believe it's a " debate" ?

The banks have made a business decision, the government of the day with a few dissenters will back it.

The only real question is when and why the taxpayer will be charged for all the advertising associated with the change!

whiteknight wrote on Jul 10^th, 2024 at 4:31am:

The cashless welfare card idea, belongs in the rubbish bin.   :(

I'm just surprised they didn't apply it to that other bunch of bludgers and "Joe's Leaners" ?

Those (so called) "disabled" and their (so called) "carers"


Not to mention those Aged Pensioners - many of which are STILL capable of "a good day's work, for a good day's pay"
They're paid WAY more than the unemployed.
Can EARN way more than the unemployed, before their welfare hand-out is affected


In fact, Aged Pensions make up for over HALF of the country's welfare bill







*post "trial" - it was found the "Joe's leaner's card" cost multi-millions to administer
- while "saving" FUCK ALL








The "policy is destined for the same "dog whistling bin" as the, so called "nuclear policy"

NATURALLY, my sadistic side would like to see them BOTH sharing top spot of their election manifesto



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Carl D wrote on Jul 10^th, 2024 at 6:06pm:

I'm pretty sure my 94 year old aunt wouldn't be too happy with the card. What sort of job should she apply for?

Well, there's always volunteer work
Let's say "Meals on Wheels" - as an example ?
and at the end of her shift, she may well get herself "a free lunch"

... even though,

technically,

there's no such thing as one.



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I believe all people on unemployment benefits should be on a cashless debit card.

These days it isn't some kind of weird thing. We literally live in an almost cashless society anyway.

Every point of sale terminal in Australia is coded with the type of business a merchant is. Anyone on a cashless debit card would have no issue buying groceries at a supermarket or other essentials. What it would do is stop them buying stuff from a bottle shop, pub, casino etc.

I have no problem with this.

The money is paid to them from the taxpayer to be able to buy food, pay their legitimate bills, pay the rent etc. Not to pay for alcohol, buy lottery tickets etc. If they want that kind of stuff, it must be paid for using their own earnings.

Carl D wrote on Jul 10^th, 2024 at 6:33pm:

Baronvonrort wrote on Jul 10th, 2024 at 6:22pm: Cashless welfare was for the unemployed. Yes. To start with. But, knowing governments the way I (and many other people) do, I am absolutely certain it would eventually be 'expanded' to include everyone who gets any sort of payment from Centrelink, including age pensioners.

I think you're wrong.

It was never intended for people on payments like the aged pension. I very much doubt the government would ever introduce it for payments like the aged pension. That would cost them a lot of votes (those on the aged pension and even non-aged pensioners).

For people of working age who should be working, and aren't engaged in some other legitimate pursuit (e.g. study, an apprenticeship etc.), they should get a cashless debit card, including and especially those on a single parent pension.

I don't pay taxes for these people to go out using it for alcohol, cigarettes or gambling.

It works exactly the same as any other debit card. It will simply decline at merchants which are prohibited, such as bottle shops, pubs etc.

MattE wrote on Jul 11^th, 2024 at 9:25pm:

Carl D wrote on Jul 10th, 2024 at 6:33pm: Baronvonrort wrote on Jul 10th, 2024 at 6:22pm: Cashless welfare was for the unemployed. Yes. To start with. But, knowing governments the way I (and many other people) do, I am absolutely certain it would eventually be 'expanded' to include everyone who gets any sort of payment from Centrelink, including age pensioners. I think you're wrong. It was never intended for people on payments like the aged pension. I very much doubt the government would ever introduce it for payments like the aged pension. That would cost them a lot of votes (those on the aged pension and even non-aged pensioners). For people of working age who should be working, and aren't engaged in some other legitimate pursuit (e.g. study, an apprenticeship etc.), they should get a cashless debit card, including and especially those on a single parent pension. I don't pay taxes for these people to go out using it for alcohol, cigarettes or gambling. It works exactly the same as any other debit card. It will simply decline at merchants which are prohibited, such as bottle shops, pubs etc.

Why not for the aged pension, is it is as low-impact as you claim?

Not everyone wants a cashless society.  There are many people that don't.  As for the cashless welfare card, I think labor has the right idea.  Cashless welfare for the unemployed, but only for those that want it.  In other words, make it voluntary as labor has done.  Well done labor you got this one right.   :(         

whiteknight wrote on Jul 12^th, 2024 at 2:21pm:

In other words, make it voluntary as labor has done.

How about except for those in a violent relationship? ::)

whiteknight wrote on Jul 12^th, 2024 at 2:21pm:

Not everyone wants a cashless society.  There are many people that don't.

Indeed.

I've just received our latest gas bill and I've signed into my online account with the energy provider and tried to pay it with my Australia Post prepaid Mastercard which I've used to pay this bill (and others) for several years.

Now I'm getting a "bank has declined payment" message when I try to pay it... and I've tried about half a dozen times since yesterday. And, yes... there is WAY more than enough money on the card to cover the bill.

Well, it looks like I'll be off to the local Post Office in the morning to pay the bill with cash.

And, no - I do not want to set up direct debit from my bank account, thank you very much (I'll probably get another email next week from the energy provider recommending direct debit like they've done after I've paid previous bills).