Welfare recipients to handle their own money

A bill has passed through government to abolish the Cashless Debit Card.

A tiny town in WA is preparing for a spike in grog violence when the cashless debit card lifts next month.

The Cashless Debit Card (CDC) was scrapped on Wednesday, with the federal government officially deciding to remove the welfare management measure from use.

Social Services Minister Amanda Rishworth said the debate in the Senate was spirited and led to numerous amendments she commended to the House. The amendments include strengthening the Family Responsibilities Commission, which referred people to the CDC and aims to help those on welfare, and to transition communities that wanted to stay on income management to an “enhanced technological card” from March 6.

Finally, a services plan must be tabled by the government to ensure those communities transitioning off the CDC had the access to services that they needed.

“These are sensible amendments they do improve the bill,” Rishworth said. “I commend them to the House.”

While the Coalition supported the strengthening of the Family Responsibilities Commission last night in the senate, when taken together with the other amendments the Opposition voted against the updated bill.

Now that the CDC has been abolished, about 17,800 Australians will no longer have their welfare income managed for them. 

However, a different welfare management card - the BasicsCard - will remain, meaning 23,000 people will still have their income managed.

The BasicsCard is similar to the CDC, but only allows users to spend their money at government-approved locations. The CDC, on the other hand, can be used anywhere as long as it's not to withdraw cash, or buy alcohol.

BasicsCard holders have complained their cards do not work at common retailers, like Aldi and Bunnings.

What is the cashless debit card?

The CDC is compulsory for anyone who receives welfare payments and resides in specific remote areas (including the whole of the NT and parts of SA, WA and Queensland). The majority (51%) of those using the card are Indigenous Australians.

Prime Minister Anthony Albanese said the card was "patronising" to First Nations people, and their income should no longer be managed by the government. 

But Opposition Leader Peter Dutton "strongly supports the cashless debit card for welfare payments to working age recipients where alcohol and drugs are a problem."

And Jacinta Price, a Walpiri woman and Country Liberal MP, said Labor should be ashamed of the harm they will cause Indigenous people by abolishing the scheme.

She called the government "racist" for abolishing the CDC but keeping the Basics Card for people in the Northern Territory. 

But Social Services Minister Amanda Rishworth commended the Bill, deeming it "sensible".