Federal Government holds back planned rollout of cashless debit card in the NT

The Federal Government has pushed back its plans to roll out the controversial cashless debit card in the Northern Territory in April.

Minister for Social Services Anne Ruston and Prime Minister Scott Morrison.

The Federal Government has pushed back its plans to roll out the cashless debit card in the Northern Territory in April. Social Services Minister Anne Ruston told the Centralian Advocate the government is now considering introducing the card in July if legislation passes through the Senate.

“We will continue to consult, visit communities and talk to people over the next five months,” she said.

The controversial card restricts welfare payments so cash cannot be used to buy alcohol or drugs. The Government plans to place nearly 22,500 unemployed people – 87 per cent of them in the NT – on to the card this year.

Central Land Council chief executive Joe Martin-Jard said the card is unnecessary because alcohol reforms in the Territory are already working to reduce alcohol-related harm.

“Compulsory income management is an unnecessary, ineffective and wasteful exercise,” he said.

“Telling people more effectively about something that has already been decided is not consultation.

“Genuine consultation about the card would give remote community residents a chance to give feedback that informs changes to the legislation prior to voting on it.”

Ms Ruston recently wrapped up a tour of the NT last week hearing from organisations and people who are on the BasicsCard across Darwin, the Tiwi Islands, Alice Springs, Ali Curung and Tennant Creek.

“We need a wide range of measures for consultation including face-to-face engagement, making sure translations are made into first languages in remote communities and doing audio visual presentations,” Ms Ruston said.

According to the Federal Government, the cashless debit card will replace the BasicsCard and still quarantine 50 per cent of payments.

Mr Martin-Jard said many people have no idea the card could soon be introduced in their remote communities.

“Our council and its executive have made it very clear that people in remote communities were not consulted about the card and many have no idea the government wants to impose it on them,” he said.

“When compulsory income management through the NT’s BasicsCard was independently evaluated, in 2014, the study found it has not changed drinking and gambling behaviours and has not resulted in people eating healthier food or managing their money better.

“Interestingly, people who had volunteered for income management had better outcomes. We believe it should be voluntary.”

The card is already operating in parts of South Australia, Queensland and Western Australia. Legislation to expand the card to the Territory is facing a roadblock from crossbenchers. A vote is expected in parliament next month.