Cashless welfare card trial should be extended, Senate committee recommends

A cashless welfare card trial that stops people using government benefits to buy alcohol and drugs should be extended until 2020, a Senate committee recommends.

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A cashless welfare card trial that stops people using government benefits to buy alcohol and drugs should be extended until 2020, a Senate committee recommends.

An inquiry scrutinising legislation to continue the card at three trial sites, including Ceduna on the west coast of Eyre Peninsula, and introduce a trial at Cape York communities in Queensland was held last month ahead of a possible vote this week.

The committee, chaired by SA Liberal Senator Lucy Gichuhi, pictured, was encouraged by accounts from local community members that the trial was having a “positive impact and reducing the level of social harm”.

“The committee recommends that the bill be passed,” Senator Gichuhi’s report states.

Concerns raised during the inquiry included a lack of consultation and the trial limiting participants’ human rights.

But the committee found the Federal Government continued to consult with stakeholders regarding the trial.

It was also satisfied that the card only limited people’s rights “to the extent required to realise the objective of the card to reduce social harm and access to harmful goods”.

First introduced in 2016, the trial puts 80 per cent of a welfare recipient’s benefits on an EFTPOS-like card. It can be used to buy essential items, but alcohol, drugs and gambling products are blocked. Extending the scheme would cost $70.8 million over four years.

The Government has pledged to extend the trial while Labor leader Bill Shorten promised to “roll back” the cards if elected.

A second assessment of the trial’s ongoing effectiveness has also been supported.

Australian Greens community services spokeswoman Senator Rachel Siewert said it was unacceptable for the government to purse this “expensive, racist and punitive card” when there was no credible evidence to prove that it works.

Senator Siewert said the government had refused to listen to evidence from academics and researchers gave during hearings.

“If the Government was serious … they would be funding programs that are actually proven to work, like early intervention programs, addiction and mental health services, effective employment supports and increasing Newstart,” Senator Siewert said.