Labor to scrap cashless welfare card if elected

Bill Shorten said “there are much better ways to use tax payer money,” than the scheme that aims to prevent welfare recipients spending their benefits on drugs, alcohol and gambling.

THE cashless welfare cardwill likely be scrapped under a Shorten Labor government.

The scheme, which was introduced by the Coalition Government in 2016, puts 80 per cent of a welfare recipient’s benefits onto an EFTPOS-like card that can’t be used to buy alcohol, drugs or gambling products.

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The government plans to role out the cards in Hervey Bay and Bundaberg as part of a trial later this month following earlier trials in Western Australia and South Australia.

During hispre-election blitz of Queensland, Opposition Leader Shorten has revealed that a Labor government would roll it back, arguing that the scheme doesn’t stack up.

“The experts tell me there are much better ways to use tax payer money to help people engage and get back into work and deal with challenges of addiction than this particular system,” he said.

“We will work with the community to roll it back and come up with better solutions which actually help people who are down on their luck.”

Mr Shorten conceded it might not be possible to “unscramble all parts of the egg”.

Social Services Minister Paul Fletcher hit out at the Labor leader’s announcement, claiming that the card was making a “real difference” for thousands of Australians.

“Our Liberal National Government believes in improving our social services system - and helping Australians in the system to exercise personal responsibility to improve their lives and improve their communities,” he said.

“Bill Shorten is more interested in the votes of wealthy, inner city, left-leaning and Greens voters than he is in supporting vulnerable Australians.”

About 6,000 welfare recipients in the Hervey Bay and Bundaberg region will take part in the upcoming trial.

Mr Fletcher pointed to a recent evaluation of the trials in WA and South Australia, which showed 41 per cent of participants who drank alcohol reported drinking less frequently.

The same review also suggested 48 per cent of participants who used drugs reported using drugs less frequently.