By Amy Remeikis
The government will push ahead with a third trial site for its cashless welfare card, despite opposition, after a final evaluation of the policy found it had "considerable positive impact" in its original trials.
The trials, which quarantine 80 per cent of welfare payments for essential services, has received a mixed response, with critics arguing it is dehumanising and forces problems underground.
But in releasing the final evaluation of the first two trials, held in Ceduna in South Australia and East Kimberly in Western Australia, Human Resources Minister Alan Tudge said the research showed a reduction in drinking and gambling among those involved in the trial, with "some evidence that there has been a consequential reduction in violence and harm".
"As many local leaders noted, these communities were in crisis largely due to massive alcohol consumption paid for by the welfare dollar," Mr Tudge said in a statement.
Human Services Minister Alan Tudge.Credit: Andrew Meares
"I hope that we can look back in a decade's time and say that this initiative was the beginning of the turnaround."
Declaring the Ceduna and East Kimberly trials a success, the government announced the WA Goldfields as the third trial site, to be rolled out early next year.
ORIMA Research's final evaluation found alcohol consumption and gambling had reduced in both trial sites, with 41 per cent of respondents reporting they drank less frequently and 48 per cent said they gambled less.
Alcohol-related hospital visits also dropped, as did pokies revenue. Of those who admitted using illicit drugs, 48 per cent said they were using less drugs.
Mr Tudge said the final report also showed recipients had become "more accepting of the card over time" and showed "spill-over benefits" with reports of people taking better care of their children and a reduction in crime and violence.
But with three trial sites now in place, Mr Tudge may struggle to extend it further, with the government needing to win the support of with Labor or the Greens to alter its legislation.
Labor has remained uncommitted, saying it would not support any extension that did not have the backing of the local communities targetted by the changes.
Greens community services spokeswoman Rachel Siewert has remained one of the biggest critics of the policy, which she said took agency and control from welfare recipients.
"In Kununurra some key crime stats have gone up since the trial was introduced," she said. "This may be an indication that people are finding other avenues to access cash. Before anybody can do any analysis of the final evaluation report, the third site has been announced. The previous report was flawed; I lack confidence in the government's analysis.
"This government continues to take a punitive, demonising, top-down approach to our social security scheme; it is demonising and undermining peoples' ability to find work and does not address the underlying causes of disadvantage".