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Cashless welfare cards explained
Words: David Mills & Hayley Goddard Producer: Simone Kealy
Cashless welfare has exploded as a hot topic of the federal election campaign. Here’s what you should know.
Labor MPs have claimed the federal government plans to put all pensioners on a Cashless Debit Card. Social Services Minister Anne Ruston has categorically ruled out such a move.
Why is this now an issue?
But Labor has seized on comments Ms Ruston made in February 2020 when she said: “We’re seeking to put all income management onto the universal platform, which is the Cashless Debit Card.”
In 2007, as part of the Howard government’s Northern Territory intervention, a cashless welfare card was introduced, which held 50 per cent of a welfare recipient’s payments.
What is cashless welfare?
The card, given to First Nations people, could only be spent on essentials like groceries. It aimed to support communities affected by alcohol and drug use, child neglect, violence and excessive gambling.
The card was later rolled out in other communities in Cape York, the Goldfields region of Western Australia and parts of Queensland. 
Despite the expansion, the cards are still officially in trial phase until the end of 2022, after a government attempt to make them permanent was defeated in the Senate in 2020.
A 2018 Australian National Audit Office report found inadequate monitoring of the cards meant it was difficult to conclude if they reduced social harm.
Why is cashless welfare controversial?
Critics said the cards have unfairly targeted Indigenous Australians, irrespective of their financial management or use of drugs and alcohol, and are a coercive, paternalistic measure.
The age pension remains the same and the government is not planning to give pensioners a cashless welfare card.
Should pensioners be worried?
Scott Morrison said the claim of a cashless welfare card for pensioners was a “despicable lie from the Labor Party” and would not be happening.
He said he wanted people to be able to enjoy their retirement.
																											

Original URL: https://www.heraldsun.com.au/web-stories/free/herald-sun/cashless-welfare-cards-explained