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.

 

[IAN3005]

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....

 

[alistev]

I can see the benefits of this system to a degree but probably not as savage as 80%. Living in an area of drugs and alcohol, thefts and 'feral kids' to limit accessible money at least keeps the kids with some food/clothing, but ,,,still on the streets. Crime won't change as cost of drugs is so high so that aspect needs consideration withoujt making purchasing normal everyday groceries as todays prices even harder and less nutritious from aging food and fattier meats. The other I heard was that the savings we have managed to scrimp from Aged Care package to go towards purchasing household needs to make caring easier will also be taken back - and that is with this current govt so the problem is on both sides not just one. Package will also have less benefits so people are now spending up before they lose. So watch that one as well. AND very few want to volunteer with groups to help these less fortunate. Me me me and that won't change with changing card payments that has to come from within a community to help community

 

[eatmeatandlift]

The idea of stopping people spending all their money on gambling, alcohol, cigarettes and substance abuse is a good thing, however, I am concerned that this will be expanded to stop people eating meat, eggs and dairy, with the climate change, zero net lunacy many governments are pushing a plant based diet, this is catastrophic for all but especially frail eldery who need more protein.

 

[MaccaMan]

"Critics, including the current Labor government, argue that it infringes on personal autonomy..." You are just too funny Labor! Where was your support for personal autonomy during the pandemic...

I concur with IAN3005, be very mindful of what one supports as it WILL ultimately be rolled out to everyone.

 

[eatmeatandlift]

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....

You are correct.

 

[shazzz]

VEHEMENTLY AGAINST

 

[Bezz]

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.

 

[Rose-Marie]

It should be up to the individual whether they want it or not. Us personally, no we don't want it!

 

[maurice wildish]

This sort of rubbish talk annoys me no end, Govt is elected to assist people live a life style that is conducive to good health as part of their function. In theory by blocking the use of the card for grog etc it does not stop the banned substances from coming into the communities, these substances are bought into the communities by various means one is the carrier leaves outside the boundary area and the people go and get the products in various ways, the big advantage is that the ban does give opportunity for the family to get food and essential items otherwise they cannot obtain; the tax payer supports to the tune of $40 billion each year giving the recipients many opportunities that others i dont get.
I believe it is the correct time for Albo to stand up and say we are going to have a royal commission into the dispersant of the $40 billion to weed out where the hell it goes

 

[Free.lander]

Despite the opposition from the government, Peter Dutton is steadfast in his commitment to reintroduce the cashless debit card, particularly in Indigenous communities.
Dutton is determined to divide the nation to get votes
1st do away with their flag-- the emotion runs hot on both sides and Dutton wins votes
next this card crap-- by not paying the full benefit, he is actually stealing their money to balance his failing economic policies- IT is their entitlement and again divide to get votes
Yes they are not the best at money management but then again you have to ask, why are so many others seeking help when they have good jobs and are in a position to do better-- why are so many getting help from charities
The problem is across society but Dutton is focusing it on one section
This country cannot afford another term of Dutton and the LNP , American politics of corruption, lies and mismanagement
The card is out , saved hundreds of millions by doing so, and Dutton was to waste money again-- the man is a loser

 

[Koda]

It doesn’t work it just creates more distress and anxiety especially for parents and elderly find another way to control habits please

 

[Iggydi]

We drove through Alice Springs about 15 years ago and they had something similar in place. The indigenous could go to the service station and they could spend a certain amount every week in that service station. I am not sure where else they could spend their money but I was told they couldn't spend it on alcohol. There was no crime like there is now in Alice Springs and we didn't feel unsafe there. After reading about how it is now I don't want to go back there. So it could be a good thing if implemented properly.

 

[Suzanne rose]

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

 

[Zorro56]

Despite the opposition from the government, Peter Dutton is steadfast in his commitment to reintroduce the cashless debit card, particularly in Indigenous communities.
Dutton is determined to divide the nation to get votes
1st do away with their flag-- the emotion runs hot on both sides and Dutton wins votes
next this card crap-- by not paying the full benefit, he is actually stealing their money to balance his failing economic policies- IT is their entitlement and again divide to get votes
Yes they are not the best at money management but then again you have to ask, why are so many others seeking help when they have good jobs and are in a position to do better-- why are so many getting help from charities
The problem is across society but Dutton is focusing it on one section
This country cannot afford another term of Dutton and the LNP , American politics of corruption, lies and mismanagement
The card is out , saved hundreds of millions by doing so, and Dutton was to waste money again-- the man is a loser

Totally agree with all you say. Dutton has spent tha last 3 years blocking legislation and dividing the ccountry and creating fear amongst the Australian people. He said hd willl not fly the Indiginous flag at prress conferences. Because it divides the country. What a joke. Everything he does is aimed at dividing the country. The man is pure scum.

 

[Petra]

I stand with Peter Dutton ..... Make Australia Great Again.

 

[mylittletibbies]

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.

 

[Timibell]

The reintoduction of these cards would be discriminatory and racist in indigenous communities. There is a majority of responsible first nations peoples who were bearing the brunt of this despicable action. As for all pensioners How dare he try to tell us how and where to spend our money. I find the notion of welfare cards simply disgusting.

 

[Col@45]

Most important thing to fix is youth crime before changing Centrelink benefits. Australia is getting as violent as America and its frightening the way these kids are attacking others, especially the elderly !
Maybe a cashless benefits card will stop these people in violent areas from purchasing so much alcohol so could be a good thing in stopping domestic violence for a start.

 

[beowulf61]

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.