The government is bringing the Cashless Debit Card (CDC) program to an end, replacing it with an income management program it says is better suited to addressing current issues.
The controversial CDC income management program will come to an end on 6 March, Services Australia says.
After that date, participants who wish to continue having their income managed will be moved to the ‘enhanced Income Management’ program and will need to contact Centrelink to get a new card called a SmartCard.
“On enhanced Income Management, participants will get a new card called a SmartCard,” Services Australia says.
“New SmartCards will be available through Services Australia from 6 March 2023. Participants will be able to continue using their existing card and online account until they request their new SmartCard.”
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For all intents and purposes, this card functions in the same manner as the CDC, limiting how participants can spend their money.
Participants are unable to make cash withdrawals, use the card to buy alcohol or for gambling. However, the SmartCard goes even further, introducing restrictions on tobacco and pornographic materials.
Eligible CDC participants located in the Cape York and Doomadgee region, the Northern Territory, Ceduna, East Kimberley, Goldfields, Bundaberg and Hervey Bay regions will be automatically transitioned to the new system.
Services Australia will be sending letters to affected participants in coming weeks.
For anyone on another income management program other than the CDC, nothing will change and current arrangements will continue.
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“Enhanced Income Management helps you budget your payments from us,” says Services Australia. It also helps you meet essential household needs and expenses, such as food, rent, bills and education.
First introduced in 2016, the CDC program aimed to help welfare recipients in disadvantaged areas better manage their money by restricting how recipients can spend their money.
The program has seen some success with participants but has also attracted negative media attention, with critics lambasting the CDC as condescending and dehumanising.
There have been accusations of racism, as a many of the areas eligible for the CDC have a majority indigenous population.
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Minister for Indigenous Australians Linda Burney welcomed the changes and said the decision to scrap the card had come after extensive consultation with the community.
“The cashless debit card diminishes people’s self-worth,” Ms Burney said.
“It also was a piece of infrastructure policy that has been reviewed, and reviewed and reviewed. It was a piece of technology that was used by a private organisation for profit.”
What’s your view on the Cashless Debit Card? Was it a success or should people be able to manage their own money? Let us know what you think in the comments section below.
It has it’s pro’s and con’s. The list is a long one.
It should never have been operated by a private company for profit.
It should also be voluntary.
Do you really think that the people that had huge alcohol, drug and gambling problems that were originally on the CDC card, that were the perpetrators of family abuse and worse would go out and volunteer to go on whatever card was being used, I don’t think so.
So who is manufacturing this card and how much is it costing this time?