Shockingly few Queenslanders sticking with cashless debit card

The Albanese Government is being slammed for spending $217m to overhaul a scheme used by only 22 people in Queensland.

The number of welfare recipients on an income management card in Bundaberg and Hervey Bay has plummeted from more than 7000 to just 22, as the government spends $217 million to overhaul the scheme.

The Albanese Government promised to scrap the Coalition’s Cashless Debit Card, but has replaced it with a voluntary SmartCard which operates in a similar way and participants kept the same account and card numbers.

Opposition Social Services spokeswoman Senator Anne Ruston accused the government of spending millions for “nothing more than a change of a card name”.

Opposition social services spokeswoman Senator Anne Ruston. Picture:

But a Labor Minister said there was more to the change than the name and defended it as keeping an election promise.

Never before released data shows just how few people have volunteered to stay on the income management card, which quarantined a portion on welfare payments to the card which can only be used at stores for products and services other than alcohol, gambling or withdrawing cash.

There were four CDC trial sites around the country, under Coalition policy, including Bundaberg and Hervey Bay.

A Senate estimates committee heard there were just 22 people who had voluntarily transitioned to the new SmartCard in that region.

Services Australia executive Jonathon Thorpe said the SmartCard had a range of differences from the former CDC, including greater wrap around services, the ability to block pornography and tobacco purchases as well as being able to make EFTPOS transactions.

An example of a cashless debit card.

Senator Ruston said the wrap around services did not relate to the functionality of the card, while the other changes were in train while the Coalition was still in government.

“Despite (Labor’s) assurances about your intention to implement all your election commitments … I still maintain my position that this has been nothing more than a change of card name,” she said.

Senator Ruston questioned the cost effectiveness of providing a services for just 22 people.

Services Australia CEO Rebecca Skinner said the small numbers in an individual location did not matter as it was run as a national system.

Trade Minister Don Farrell. Picture: Florence Lo-Pool/Getty Images

Senior Labor Minister Don Farrell said the government had promised to scrap the CDC while in Opposition.

“If we go to the election with a promise to the Australian people, then we are prepared to implement that promise in the Australian Government,” he said.

“There are significant differences between before and after.

“I know you want to characterise it as simply a name change, but that simply isn’t correct. There’s a lot more to it.”