Recent political discussions have introduced the possibility of a significant change in giving out benefits through Centrelink that could affect welfare recipients, particularly in Indigenous communities.
Opposition leader Peter Dutton spoke in the Labor-held seat of Chisholm, Melbourne on Sunday and announced his intention to reintroduce a Centrelink change that originally rolled out years ago.
In his speech, he shared his plans to reintroduce the controversial cashless debit card, a move that could impact those who rely on social assistance.
‘In Indigenous communities where drugs and alcohol are prevalent, we will reintroduce the cashless debit card for working-aged welfare recipients in consultation with communities, to make sure children are getting the support from their parents that they deserve,’ he explained.
The cashless card, originally introduced in 2016, aimed to ensure that funds were spent on essentials. At the time, it reportedly helped welfare recipients keep up to 80 per cent of their income. Only 20 per cent of their payments reportedly went into their bank accounts.
Meanwhile, during its trial between 2019 and 2021 in regions like Bundaberg and Hervey Bay, the card reportedly prevented over $400,000 of welfare money from being spent on items such as alcohol, cigarettes, and gambling.
Despite these figures, the Labor Party, led by Anthony Albanese, abolished the card shortly after taking office in 2022. Social Services Minister Amanda Rishworth cited the card’s failure to deliver its intended outcomes and added that it was ‘time to give people their autonomy back.’
‘So many people’s lives were adversely affected because they could not access enough cash … to be able to live their life,’ Risworth explained.
The decision to scrap the card was met with opposition from the Liberal Party, which argued that its absence could lead to increased substance abuse and violence in communities already facing such challenges.
Meanwhile, the Parliamentary Budget Office estimated that discontinuing the card would bring the government around $290 million in savings over four years.
As the country approaches a federal election, with a date yet to be set but required by May 17 at the latest, both Dutton and Prime Minister Albanese are campaigning with a series of promises.
Dutton’s pledge to bring back the cashless debit card is reportedly part of a broader commitment to address issues in Indigenous communities, including a proposed Royal Commission into sexual abuse and a full audit of spending on Indigenous programs.
For our YourLifeChoices readers who are Centrelink recipients or have family members who are, this proposed change could impact the way you manage your finances and access your benefits.
We invite you to share your thoughts on this proposed change. Do you believe it’s a helpful tool for managing welfare payments, or does it infringe on personal freedom?
Your insights are valuable, and we look forward to reading your comments below.
Also read: 2025 brings key adjustments to Medicare and Centrelink services
Is the age pension still considered as “Welfare”?
I suggested to the Liberals that once they get elected, that the move the Nuclear power stations back into Labor or Green seats
Dutton and lib voters should have them in their electorates as they want them
The problem with the cashless welfare card is that it doesn’t achieve anything except make life harder for the downtrodden. Alcoholics, addicts and gambling addicts will rob and steal to feed their addiction, so it is only making life worse for the welfare families and society in general who are affected by the resultant crime wave.
Albo has increased crime and domestic violence and children going hungry in mainly indigenous communities when he changed the cash card so that grog could be bought instead of food. Albo presume you are proud of yourself for creating these problems.
And you can bet that the fees for using the card will be eaten up and used to boost the big bank profits. Many or most business houses have a % added to cost for using a card for payment. There would also be a handling company who gets a substantial contract
It was never for Disability Support, Carer or Age Pensioners, and only in regions where it was warranted due to alcohol, drugs and other crimes. I can’t comment on indigenous communities.
But if those people who are vulnerable were given lessons in financial planning – just a very basic budget would do, then this may not be a real issue. I live on a single age pension and have some savings, so people can be ‘taught’ how to live within their means, without alcohol, drugs & gambling.
As for alcohol & drugs, is there community support in those regions for the people so affected? If not, why not? It may be better to spend the money on rehab rather than restrict spending for those who aren’t affected in these communities. It has to be a nation-wide effort, not just concentrated on certain population areas.
Dutton wants the cashless card back because it was a lucrative money spinner for the company that issued it which was part owned by prominent Liberal Party identities.
Make no mistake about that.
Also in operation it meant people were forced to shop in selected stores, sometimes the highest priced ones which were authorized to accept the card. Another money spinner for certain big LNP donors.
Make no mistake about that either.
Absolutely!
As a disability support pensioner I think the government needs to understand that we are all not taking drugs, gambling or drinking alcohol, so don’t understand why they think that we all should have this card, they need to check it they are behind in bill ect, you can not say well this community has some issues as we will introduce the card and hope thing get better it need to be for JobSeeker , just starting out who might need help with managing their finances will looking for work need to start from the beginning, as it’s hard to convince people that they need to change their lives and habits.
It does not need to be for jobseekers at all. I know more DSP recipients who are drug addicts/drunks than I do job seekers who use at all.
The cashless caed worked very well in a lot of places, especially in communities where most of the welfare money is spent on alcohol and tobacco. It means that children will hopefully get fed and clothed better, and there will be money for other necessities.
Also the govt must make sure that there are zero charges associated with using the card – after all, itis a CASH card. Banks and credit card companies are constNtly trying to rip us off, and they must be pulled bck into line.
Please read the comment above yours, THAT IS THE MAIN PROBLEM!!! Stores that these people are made to use charge them an arm & a leg, then also let ‘em book up too. So then it’s bye, bye to their next card, it’s already the stores…
The consumer has been hamstrung ever since past Governments made it mandatory that our earned money be deposited into bank accounts, thereby empowering banks to charge us to keep our money with them and to access it. This is just more of the same. Our ‘she’ll be right’ attitude keeps the populace hostage to questionable decisions and practices implemented on our behalf. When will we draw the line?!
It’s already proven to not really do jack to help these communities, they just sell their cards for less, ALOT LESS than their actual value, so how the hell is that supposed to help? We’re trying to save for a car for instance. What are we going to give them, those cards as a deposit? I think not.
As mentioned previously, the INDUE card was run by LNP co-horts & proved to be a money spinner for those involved. Along with the selected businesses that are the only recipients for this card of course it’s a rort to print profits for themselves & bugger all to help the community. Typical LNP solutions eh?
There are a number of issues here.
First of all, is the issue of dignity, or personal agency, of autonomy and of responsibility. The card removes these.
The former Indue Cards were outsourced to private companies who were making about $12000 per card. That money would be better spent increasing jobseeker, carer Payments and pensions, or providing cheaper medicines and healthcare.
Regional and rural communities would prove problematic. In those towns, everybody would see and know who was on welfare when they pay with the card.
Now I note from some of the comments that some have observed that pensioners never had to use it. The legislation initially allowed for trials, which were among indigenous communities first. To me that was discrimination and racism. We all know that there are those with substance abuse issues, alcohol problems, domestic and family violence in our cities and suburbs as well. Those issues are endemic.
The legislation did allow for it to be rolled out to other groups.
There is a tendency for some to push down, far easier than focusing upwards. Other reports today spoke of the fact there are 150 Australian Billionaires, who pay far too little tax. Wealth inequality is increasing, yet rather than address issues such as inadequate pensions, carers payments, declining bulk billing rates, rising cost of living the most vulnerable are scapegoated.
And the rich will keep getting richer if Dutton wins and allows the rich to claim business lunches as a legitimate tax deduction so no one should kid themselves that things will be better under a Dutton lib govt