Navigating the complexities of Centrelink can be a challenge for many Australians, especially our senior community members who rely on welfare for their livelihood.

It's crucial to stay informed about any changes that could impact your benefits. Recently, Peter Dutton, the leader of the opposition, has made headlines with his pledge to reintroduce a controversial measure that could significantly alter the way welfare is managed for recipients in Indigenous communities.

This proposal has sparked widespread debate, with supporters arguing it promotes responsible spending, while critics raise concerns about its potential to condemn vulnerable groups. As discussions continue, understanding the implications of such policies becomes increasingly crucial for all affected individuals.

The cashless welfare card, a system initially rolled out in 2016, is designed to restrict how welfare payments can be spent.

The card aims to prevent money from being used on alcohol, gambling, and tobacco by quarantining up to 80 per cent of welfare payments.

Peter Dutton's proposal reintroduced the cashless debit card for welfare recipients in Indigenous communities. Credit: Depositphotos

Only the remaining 20 per cent is deposited into recipients' bank accounts, ensuring the bulk of the funds are spent on essentials like groceries.

During its trial between 2019 and 2021 in the Bundaberg and Hervey Bay region, the card reportedly blocked over $400,000 from spending on prohibited items.

Proponents of the card argue that it helps to reduce substance abuse and associated social issues within vulnerable communities.

However, the card has been a subject of intense debate. Critics, including the current Labor government, argue that it infringes on personal autonomy and has failed to achieve its goals.

Social Services Minister Amanda Rishworth pointed out that the card's restrictions adversely affected many people's lives.

‘So many people's lives were adversely affected because they couldn't access enough cash...to be able to live their life,’ she claimed.

The Labor government, led by Prime Minister Anthony Albanese, scrapped the welfare card shortly after coming into power in 2022.

The move was supported by findings from the Parliamentary Budget Office, which projected a saving of almost $290 million over four years by discontinuing the card.

Despite the opposition from the government, Peter Dutton is steadfast in his commitment to reintroduce the cashless debit card, particularly in Indigenous communities.

He believed that, with proper consultation, the card can ensure that children receive the support they deserve from their parents.

Dutton has also promised to hold a Royal Commission into sexual abuse in Indigenous communities and to conduct a full audit of spending on Indigenous programs to address inefficiencies.

‘There are communities where safety, housing, health, education and employment are critical issues,’ he said.

‘That's where our efforts must be targeted.’

As the federal election looms, with a date yet to be set but required by 17 May at the latest, Dutton and Albanese are hitting the campaign trail with their respective promises and policy proposals.

For our members who are Centrelink recipients, it's essential to understand how these potential changes could affect you.

While the cashless welfare card is unavailable, its reintroduction could significantly shift how you receive and spend your benefits.

It's a reminder of the importance of staying engaged with political developments and advocating for policies that respect the dignity and autonomy of all individuals, regardless of their financial situation.

Key Takeaways

• Peter Dutton has proposed the reintroduction of the cashless debit card for welfare recipients in Indigenous communities to prevent spending on alcohol and gambling.
• The card quarantines 80 per cent of a recipient's income and blocked over $400,000 on prohibited items during a Bundaberg and Hervey Bay trial from 2019 to 2021.
• The current government led by Anthony Albanese scrapped the welfare card shortly after coming to power in 2022, with Social Services Minister Amanda Rishworth stating it was 'time to give people their autonomy back'.
• Dutton's plans are part of his campaign promises as he and Prime Minister Anthony Albanese are on the election trail, with an election to be held no later than 17 May.

Have you or someone you know been affected by the cashless welfare system? What are your concerns or opinions on the proposed reintroduction of the card? Your insights are valuable. Feel free to share them in the comments below.

 

[addingko]

The government should give all the recipients the FREEDOM to how the welfare money be spent. To those who are not in age pension, there should be a limit of years in receiving benefits. Help them find work to sustain themselves.

 

[PammW]

Not that nightmare again! My husband, as my Carer, was forced on to it! You know what? Our last mayor insisted on supporting the freaking thing and now he's .. well, he was voted out

I'm thankful my father-in-law was here for us, otherwise I don't know what we'd have done. Thefts in our town rose. On "payday" you'd see groups of men waiting for the woman in the group to withdraw her payment. They then went to the bottle shop *sigh* I don't ever want to see people have to go through that again!

 

[siameezer]

1984 is approaching faster than we think. He better not get bright ideas about extending that to ALL cardholders. I am sure he has that in the back of his mind. Mongrel....

He definitely has pensioners in mind too. The last LNP government were extending it to pensioners as well but luckily it was defeated in the Senate and then the election took place and they didn't have the chance to put it before them again as they were voted out.

 

[siameezer]

Good idea for certain communities/people. At least the children could be fed and clothed, and the money notspent on drugs and alcohol. May stop alot of the crime and bashings in these areas.

No it doesn't ... it INCREASES crime in the area. I have friends who live in the Bundaberg area and because access to their payment in cash was stopped there were a LOT more muggings, house robberies and general theft.

 

[gamiry]

I think it would be political suicide to either party should they decide to bring this in for aged pensioners.
There's too many of us and I really don't think any average person, pensioner or not, would back that happening.
Mainly this card is to help ensure that young children receive every day necessities, to which they are entitled, and not wasted on their parent's vices.
This does not affect aged pensioners whose children are well passed the age of needing to be cared for by their parents.

Who will be in every home to ensure that kids get fed and cared for properly? Doesn't anyone realise that people can buy things they don't want or need and sell it to people who do want it so that they get the cash to buy their drugs, booze, etc.

 

[siameezer]

This policy is costly. A financial institution supplies those cards and the administration costs are huge. The cards also hindered people who were not alcoholic gamblers. People had problems accessing enough cash for things like school. A lot of people get unnecessarily forced into using the cards. They should be optional.

Plus what a lot of people may not be aware of is that funds were not even held in an Australian bank! They were held by the Bank of America!!! Indue (the company administering the card) banked overseas.
If you wanted Indue to allow you access to your funds that were not part of the 20% paid into your bank you had to jump through so many hoops and people supporting the card probably don't even think about how it may affect them.
I have mobility issues and need to do my grocery shopping online as walking around a supermarket is getting too difficult for me. In the areas where this card was in place Coles Online and Woolworths Online were BANNED merchants because they sold alcohol. It didn't matter that you weren't buying alcohol ... the fact they sold it meant you couldn't shop there. I am not sure how people in my position are supposed to get basics like food. People's rents were not being paid on time and there were many evictions as well as refusal to rent to people on the card. There was one case I know of too where a woman had a radical mastectomy and needed a special bra so applied for her funds to be released for her to purchase it. Indue refused unless she sent a photo of her scarred chest ... totally unacceptable. There are many more horror stories like this too.
I have a friend in Bundaberg who, although she wasn't on the card herself, saw first-hand the damage it did to people and we really cannot afford to have it introduced nationwide. Age pensioners, and others, deserve so much better!

 

[siameezer]

Many of these communities have asked that it be re-introduced - they saw the value and want it back. As for pensioners being on it - we were not before and won't be unless some want it - if recipients of payments are having problems with gambling/alcohol they can ask to be included - their choice!
I am for it being brought back - these people are not responsible for their families - so someone has to do it.

Wrong. It will be COMPULSORY for ALL Centrelink recipients. That has already been stated. They tried that last time but luckily the motion to extend the card to pensioners was defeated in the Senate because of some of the Independent senators voting against it. Otherwise, you would be on it right now.

 

[siameezer]

Who said it is going to be across the board - you are reading more into the Cash Management Card than is reality - I find this story over the top and a dose of misinformation!

You keep lying in multiple comments on a topic you know NOTHING about.

 

[mylittletibbies]

The government should give all the recipients the FREEDOM to how the welfare money be spent. To those who are not in age pension, there should be a limit of years in receiving benefits. Help them find work to sustain themselves.

So you think the Government should supply people with tax payers money to spend willy nilly on drugs., alcohol, gambling etc. while depriving their families of food for a certain amount of time and then cut them off with nothing.
Good thinking Noddy.
These people black. white or brindle, aren't interested in finding work.
They need to target these cards at the right people as people doing the right thing should not be affected.

 

[siameezer]

You need to read up on this properly, it doesn't effect pensioners, unless you request it.
If you are going to vote for something you need to know the full details of what you are actually voting for.

It WILL affect pensioners ... the rollout will be national and to all Centrelink recipients. That was their intention last time but the Senate defeated the bill. I sat up late into the night watching that Senate hearing so I do know what happened and what the proposition was. The LNP have stated already that it will be one of the things they will introduce.

 

[siameezer]

It didn't before!

It didn't before!

That is an unmitigateed lie. People in Bundaberg/Hervey Bay saw a massive increase in crime and unless you live there are talking out of your backside. All you are sounding like is an apologist for the LNP and the disgusting way they want to treat pensioners.

 

[siameezer]

bullshit get some brains

What a rude and vile comment from someone who knows NOTHING about the CDC and how the LNP plans to administer it.

 

[Tactful]

The purpose of the cards is to prevent vulnerable Centrelink payment recipients from using taxpayer funds to buy illicit drugs, booze, smokes, gambling and not buy food, pay rent, utilities etc.
When introduced into high welfare recipient areas, including indigenous communities, the trouble with drug abuse, alcohol abuse and gambling all reduced. When removed by Albo, without consultation with those receiving them, put all the communities back into trouble again.
Just remember 20% still goes to the bank. Knockers usually have no idea about why the cards were introduced. How about you do some fact checking before knocking.

 

[siameezer]

They are not talking about you. Also people who receive this card their rent does get paid

NO ... the rent does NOT get paid!!!!!!!! That is a HUGE part of the issue. Talk to people in the Hervey Bay and Bundaberg areas where the biggest trials took place. Ask them how much homelessness was caused by this card, how Indue were NOT paying rents on time, how people were being evicted and how real estate agents were refusing to allow people on the card to rent properties.

 

[siameezer]

People read the whole article , it's not saying its going to be brought in for everyone.
It's certain areas where alcohol and gambling are high and mainly for The Indigenous people

It WILL be brought in for everyone ... Dutton has already said this. The media trigger all the racists by mentioning Indigenous people in an attempt to blindside you into thinking it won't affect you. It will.

 

[Sue's]

Sounds like a very autocratic plan to me and impacts on the 'have nots' and the general population. Those who are lucky enough to have self funded super or savings like our politicians would have in abundance will be ok not so those who live off their pension. For those in certain communities maybe ok for a short time so they can prioritise but with good community support of which Jacinta Price offers this may be turned around. The majority in Australia should not suffer for a minority. Duttons plan sounds like class distinction bordering on socialism which Albanese very clearly will be kicked out for. I will be voting PH who speaks truth on behalf of the Australian people & love of Australia & who can block destructive bills going through

 

[Squizzy1]

While Govt. spending on all projects should be up for scrutiny and the added cost for the card is ridiculous singling out one particular group to be treated differently is what I thought they opposed. I would much prefer he focused on the perks and lurks of politicians and the money they waste.

This was tested in areas where high gambling was.

They are not saying its for everyone, they are saying certain areas. And I'm all for it, why should a person receive a government payment only to go and waste most of it on alcohol and gambling.

A friend of mine lives in an area with a high population of indigenous people and told me how come pension day the pubs would be full and so are the parks. Their money is then spent quickly on alcohol leaving no money for food or bills.

The crime rate is very high. Its a common thing to catch a trying to break in or trying to steal sonethibg from your property
I spent a few days visiting her and saw for myself. She grew up in Bowraville NSW next to Macksville, and moved back to look after her parents and after they passed away decided to stay.

This problem isn't just with those receiving a pension but also those receiving any government payment.

Then when they have wasted their payment on alcohol and gambling there is nothing left to feed their kids.

I'm not saying its only a problem with indigenous people ,it's a problem across the board . But with indigenous its a community problem not just an individual

Pensions and payments are there to help you survive and pay rent abd purchase food not to be used on gambling abd alcohol

Pensioners are not responsible for their kids.

 

[siameezer]

The purpose of the cards is to prevent vulnerable Centrelink payment recipients from using taxpayer funds to buy illicit drugs, booze, smokes, gambling and not buy food, pay rent, utilities etc.
When introduced into high welfare recipient areas, including indigenous communities, the trouble with drug abuse, alcohol abuse and gambling all reduced. When removed by Albo, without consultation with those receiving them, put all the communities back into trouble again.
Just remember 20% still goes to the bank. Knockers usually have no idea about why the cards were introduced. How about you do some fact checking before knocking.

What a load of unmitigated codswallop!

 

[Daibhin]

I have quite a few indigenous friends. many of whom believed in this card.
Many elders in indigenous communities were against it being cancelled as they said problems had decreased considerably.
Consultation with the elders in troubled communities should be considered and their views taken into consideration.
However. This is not just a problem of indigenous communities. There are many. many white families that are affected by these problems where children go without as parents spend their welfare money on cigarettes, alcohol and drugs. Welfare is provided to support people in need, not to support people's vices.
How do we solve this problem, I have no idea, and it appears neither does anyone else.
Many, many years ago I was an Army wife and we received an allotment each pay day. deducted from our husband's pay and paid direct into our own account for household expenses. Maybe something like this could work, but in those days there were not many women with drug or alcohol problems, sadly there is today. And then you have the problem of abusive partners who take the money anyway.
What a vicious circle. What is the answer?
Attacking everyone's political views, Labor versus Liberal, doesn't solve anything.
I thought we were supposed to be considering the pros and cons of this problem, not having a political bun fight.

Many years ago I was a navy wife and we also had money allotted from the husband's pay, the problem was that the husband stated the amount for their wives. Mine, I found out after several years, was the lowest amount he could allot, while he could happily afford as much alcohol as he pleased, yet he would steal money from my purse, which caused embarrassment when I was about to pay for groceries and found money was missing, money that I needed to feed and clothe our children. There's so much more I could tell but you don't need to know my past worries.

I don't see why, if there is an alcohol and drug problem with anyone on welfare payments, that deductions for rent and power bills could not be deducted before the rest is paid into the person's or their spouse's account if she is a stable partner, or another responsible person if both are addicted to whatever. It's a dreadful problem, but I don't think punishing all indigenous people for the problem of some is helpful.

 

[siameezer]

Sounds like a very autocratic plan to me and impacts on the 'have nots' and the general population. Those who are lucky enough to have self funded super or savings like our politicians would have in abundance will be ok not so those who live off their pension. For those in certain communities maybe ok for a short time so they can prioritise but with good community support of which Jacinta Price offers this may be turned around. The majority in Australia should not suffer for a minority. Duttons plan sounds like class distinction bordering on socialism which Albanese very clearly will be kicked out for. I will be voting PH who speaks truth on behalf of the Australian people & love of Australia & who can block destructive bills going through

PH voted IN FAVOUR of this card at the Senate hearings held about it when the LNP were in government. She is the one who said anyone on Centrelink payments, including pensioners, has NO RIGHTS. She wants this card so she won't save you from it.