Recent political discussions have introduced the possibility of a significant change in giving out benefits through Centrelink that could affect welfare recipients, particularly in Indigenous communities.
Opposition leader Peter Dutton spoke in the Labor-held seat of Chisholm, Melbourne on Sunday and announced his intention to reintroduce a Centrelink change that originally rolled out years ago.
In his speech, he shared his plans to reintroduce the controversial cashless debit card, a move that could impact those who rely on social assistance.
‘In Indigenous communities where drugs and alcohol are prevalent, we will reintroduce the cashless debit card for working-aged welfare recipients in consultation with communities, to make sure children are getting the support from their parents that they deserve,’ he explained.
The cashless card, originally introduced in 2016, aimed to ensure that funds were spent on essentials. At the time, it reportedly helped welfare recipients keep up to 80 per cent of their income. Only 20 per cent of their payments reportedly went into their bank accounts.
Meanwhile, during its trial between 2019 and 2021 in regions like Bundaberg and Hervey Bay, the card reportedly prevented over $400,000 of welfare money from being spent on items such as alcohol, cigarettes, and gambling.
Despite these figures, the Labor Party, led by Anthony Albanese, abolished the card shortly after taking office in 2022. Social Services Minister Amanda Rishworth cited the card’s failure to deliver its intended outcomes and added that it was ‘time to give people their autonomy back.’
‘So many people’s lives were adversely affected because they could not access enough cash … to be able to live their life,’ Risworth explained.
The decision to scrap the card was met with opposition from the Liberal Party, which argued that its absence could lead to increased substance abuse and violence in communities already facing such challenges.
Meanwhile, the Parliamentary Budget Office estimated that discontinuing the card would bring the government around $290 million in savings over four years.
As the country approaches a federal election, with a date yet to be set but required by May 17 at the latest, both Dutton and Prime Minister Albanese are campaigning with a series of promises.
Dutton’s pledge to bring back the cashless debit card is reportedly part of a broader commitment to address issues in Indigenous communities, including a proposed Royal Commission into sexual abuse and a full audit of spending on Indigenous programs.
For our YourLifeChoices readers who are Centrelink recipients or have family members who are, this proposed change could impact the way you manage your finances and access your benefits.
We invite you to share your thoughts on this proposed change. Do you believe it’s a helpful tool for managing welfare payments, or does it infringe on personal freedom?
Your insights are valuable, and we look forward to reading your comments below.
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