Opinion: Vulnerable left behind in cashless welfare fiasco

It turns out the new “smart card” replacing the cashless debit card in certain communities isn’t so smart, writes Keith Pitt.

Food, clothes and school excursions for children, rent to keep a roof over a family’s head – since when are these worth less than winning an inner-city vote?

The answer, apparently, is when federal Labor makes an election promise to win inner-city seats by abolishing the cashless debit card. So senior Labor minister Don Farrell told senate estimates last week.

The card in four trial sites across Australia was abandoned last year – without any new form of income management or support in place – to belatedly be replaced by a new voluntary “smart card”.

Last week in estimates we found how the smart card wasn’t that smart. At a cost to taxpayers of $217m, the card was being used by just 22 people from my electorate of Hinkler.

The year prior in Hinkler, around 7000 people were on the card: those aged 35 and under and receiving JobSeeker, Parenting Payment Partnered or Single and Youth Allowance (other). This meant 80 per cent of their welfare was placed on to the cashless card, ensuring there was money for the essentials like rent, food and clothing, leaving 20 per cent to be withdrawn in cash, or retained and saved.

That was before Labor cut the card up in a blaze of ideological zealotry, saying it was demeaning and taking away people’s human rights.

I ask you, how is it taking away human rights to leave welfare recipients to face huge cost-of-living pressures, rent increases, food and power price hikes, without the card to aid their financial management?

Labor’s timing could not have been worse for vulnerable children and families.

At a time when all the heavy lifting to set up the card, roll it out, test it and ensure it worked across the nation’s EFTPOS machines had been done; at a time when inflation was hitting record highs, when housing affordability and availability was becoming dire, Labor pulled the plug.

The smart card wasn’t even ready to put in the cashless debit card’s place, stranding people who wanted to retain any form of income management. And now, we find out that a massive $217m was wasted on the smart card; millions that could have been spent improving the quality of lives of vulnerable children and families.

An example of the previous cashless debit card

Services Australia CEO Rebecca Skinner admitted in senate estimates last week that the smart card was a national system. That means the card can be accepted anywhere in Australia. The cashless debit card was accepted at EFTPOS machines anywhere in Australia.

Now that technology exists and welfare recipients can easily access EFTPOS payments across the nation, instead of limiting its use, I say expand its use across the nation so that welfare recipients have money for rent, food and clothes before welfare can be used on alcohol, cigarettes and other non-essential items.

But wait! The Labor left Twitter tweeters are choking on their soy lattes at the thought of destroying the rights of welfare recipients.

What about the rights of children to be fed and clothed, for domestic violence victims not to be bashed or intimidated to hand over their cash; for Australian taxpayers to be reassured that their hardworking taxes are going to actually help not hinder!

And remember, that welfare payments are meant to be a safety net until paid employment can be found. Post-Covid-19, Australia has been desperate for workers, mainly unskilled workers, in retail, admin, farming, trades, factories. Employers are still facing huge challenges in filling jobs.

If welfare recipients don’t like the mandatory cashless debit card/smart card, there are jobs to pick and choose from at their finger tips.

Sadly, Australia has a major problem with intergenerational welfare. In my electorate and many others, all kids have known is their parents and grandparents having been on welfare. In some cases, up to four generations of welfare dependence. It is the norm for these kids to believe that is what families do, they rely on welfare not work.

We’ve all seen way too many graphic and heart-wrenching images of towns in Australia in recent months where children aren’t being given the opportunities they should. Where crime, alcoholism, domestic violence and lawlessness are destroying children’s lives, their opportunities, ambition, dreams and hopes of a normal life.

Was an election promise by Labor to win votes in inner-city seats worth it?

It’s time to stop the political, ideological game playing and get the cashless debit card, by any other name, rolled out nationally for welfare recipients under the age of 35 to provide financial management, the essentials of life and safer, more functional communities for all.

Keith Pitt is the federal Member for Hinkler