Cashless debit card to be scrapped under Labor’s proposed laws, with people able to ditch it in months

Thousands of Queenslanders forced onto the cashless welfare card will be able to ditch it from as early as September under laws to be brought to parliament that involve scrapping the program altogether.

Thousands of Queenslanders forced onto the controversial cashless welfare card will be able to ditch it from as early as September under laws to be brought to parliament that involve scrapping the program altogether.

There are more than 4700 people on the cashless debit card, also referred to as the “Indue” card, in the Bundaberg and Hervey Bay area, with another 108 people in Cape York volunteering to be on the program as of the latest data.

Federal Labor has long called for this version of income management to be scrapped, arguing it disproportionately impacted First Nations peoples and research into the card had never shown unequivocal proof that it actually worked.

Social Services Minister Amanda Rishworth confirmed she would be introducing laws on Wednesday to abolish the cashless debit card, with the majority of participants to transition off the card but with the option of going onto voluntary income management.

Communities in Cape York and the Northern Territory use an older form of income management known as the Basics Card, and that will remain.

Social Services Minister Amanda Rishworth pictured. Picture: Sam Ruttyn

Under the program, under 35s on JobSeeker and Youth Allowance have 80 per cent quarantined on the card to be used at stores for products and services other than alcohol, gambling or withdrawing cash, with about $200 each 28 days available to be withdrawn as cash.

According to the government “transition arrangements” off the cashless debit card would include an “extensive communication strategy” and in-person engagement at each site.

Ms Rishworth said the Government would continue to consult with affected communities to “explore the future of income management and other supports that they may need”.

Should the laws pass, cashless debit card participants could be able to opt out from as early as September this year by contacting Services Australia.

“There will still be support available to those who need it, including opting in for voluntary income management, setting up Centrepay arrangements and referrals to local supports,” Ms Rishworth said.

“This legislation also ensures that the Family Responsibilities Commission can continue to support community members in the Cape York region by re-establishing Income Management.”

The Coalition government introduced the card on a trial basis in 2016 in parts of the country including Queensland to “ensure that welfare payments are spent in responsible and meaningful ways and not spent on products and activities that contribute to social harm”.

In 2020 the government tried to make the card permanent but only garnered enough support to extend the trial by an extra two years and allow people in the NT and in Cape York to get onto the program if they wanted.