Grants to help ease off Cashless Debit Cards
Labor has unveiled one of the first steps in its plan to transition people off the Cashless Debit Card with a $17m investment to prop up employment support and infrastructure projects.
Labor has unveiled one of the first steps in its plan to transition people off the Cashless Debit Card with a $17m investment to prop up employment support and infrastructure projects in communities where the CDC was formerly used.
Social Services Minister Amanda Rishworth has announced the funding would be delivered under a grant program – Community-led Solutions, Economic Development Grant Opportunity – which organisations from Ceduna, Goldfields, East Kimberley and Cape York could apply for.
“We have been listening to former Cashless Debit Card communities and we are hearing them loud and clear,” Ms Rishworth said.
“This funding will meet the call for additional investment in shovel-ready infrastructure projects that provide ongoing and sustainable opportunities for training and employment.”
Under the CDC, participants had up to 80 per cent of their welfare payments quarantined, disallowing them from buying alcohol or gambling with the funds.
The October budget revealed $217m was set aside to axe the CDC and help people transition off the card, with advocates at the time calling for more detail on how the funding would be distributed to communities.
Figures from the Department of Social Services earlier this month revealed that more than 73 per cent of people in the card’s four trial sites chose to opt out since the government announced it would end the mandatory program in October.
It is expected the $17m in funding announced on Wednesday will be used for capital projects – such as tourism and cultural centres – along with on-the-job training and other employment opportunities.
“Breaking the cycle of welfare dependency is critical and we need to provide pathways to employment for people in their communities,” Ms Rishworth said.
The Coalition has raised concern with the axing of the card, which some MPs warn could lead to higher rates of domestic violence and crime. However, legislation to scrap the CDC passed parliament at the end of September, with support from the Greens and crossbenchers.
Funding from the grant is expected to be rolled out in early 2023.
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