Legislation to end Cashless Debit Card goes before the Senate

A date for people to opt out of the Cashless Debit Card has been announced, provided new legislation is passed by the Senate this week. Here’s what that means for the Hinkler region:

Legislation to be passed in Federal Parliament this week will see people who were placed on the Cashless Debit Card able to opt out from October 4.

The trial, which began in May 2019 in the Hinkler region, saw welfare recipients under the age of 35 receive 80 per cent of their payments on a card which restricted spending on alcohol, gambling, and cash withdrawals.

The income management card, which had been mandatory for more than 17,000 people on the program, will become voluntary in Ceduna, East Kimberley, Goldfields and Bundaberg-Hervey Bay.

About 639o of those are in the Hinkler region.

The BasicsCard, another income management tool used by thousands of welfare recipients in the Northern Territory, remains in place.

Kathryn Wilkes has been a vocal opponent of the Cashless Debit Card.

Maryborough’s Kathryn Wilkes, who has campaigned tirelessly against the card, said for those who had struggled under the income management program, “it’s finally going to be over”.

“Those forced onto it will get their lives back, their rights back, their privacy back,” she said.

Debate on the legislation began in the Senate on Monday, September 26, but has not been passed yet.

“This was a critical election announcement because the Cashless Debit Card was a failed program that did not deliver good outcomes in communities,” Social Services Minister Amanda Rishworth said.

The legislation was set to pass the Senate last week, allowing participants to opt out from September 19, but it was delayed due to Queen Elizabeth’s death.

The Federal Government is also looking to provide $50 million for extra drug and alcohol treatment programs in Cashless Debit Card trial sites and $17 million for community employment initiatives, and the continuation of support services linked to the program, such as community buses.

The Federal Government announced the updated timeline last week, along with the details of a new “enhanced” card.

The Cashless Debit Card.

People who choose to remain in income management will switch to the enhanced card from July 2023.

Hinkler MP Keith Pitt was a strong supporter of the Cashless Debit Card and pushed to unroll the program in his electorate, which had one of the worst unemployment rates in the nation, especially among young people.

Earlier in 2022, Mr Pitt said Labor had made an election promise to stop the Cashless Debit Card program but had never offered an alternative.

“Labor have well and truly put the cart before the horse. They said they’d consult with communities before making change, but they have not said how they will address the complex issues that each of the Cashless Debit Card trial sites face,” Mr Pitt said.

“I’ve said many times that Cashless Debit Card is not a silver bullet, it’s just one tool in the toolbox to help our communities, and it has had a positive impact: children are going to school with lunch and are getting the essentials and rent rolls are being paid.”

Originally published as Legislation to end Cashless Debit Card goes before the Senate