A controversial welfare card scheme aimed at cutting down access to drugs, booze and gambling among those on benefits has been hailed a success by the government as it was announced on Friday that the trial will be extended until June 2020.
Trials began in March 2016, with the Cashless Debit Card (CDC) scheme currently in place across three regions; Goldfields and East Kimberley, Western Australia, and Ceduna, South Australia.
The trial was launched to see whether limiting the amount of cash available to welfare recipients had a positive impact on the misuse of drugs and alcohol, as well as the level of violence and criminal activity.
Announcing the extension on Friday, Minister for Families and Social Services Paul Fletcher said the trial has had a positive impact in the three areas, with cards now set to be rolled out across the Bundaberg-Hervey Bay region of Queensland from next month.
“This will give further certainty to communities about the CDC program that is yielding significant positive results,” Fletcher added.
The scheme works by splitting welfare payments into two chunks, with 20 per cent paid into the recipients’ usual bank account, while the remaining 80 per cent is then loaded onto a cashless card.
The card looks and operates in the same way as a regular bank card and can be used in most locations, including any store that accepts EFTPOS, as well as approved online stores and to pay bills. However the Cashless Debit Card cannot be used to withdraw cash or to purchase alcohol or fund gambling.
In the Ceduna, East Kimberley and Goldfields regions the program applies to anyone in receipt of a working age welfare payment, excluding those on the Age Pension and Veterans’ Pension. However pensioners can volunteer to take part in the scheme.
In the Bundaberg and Hervey Bay region, the program will apply to people aged 35 and under who receive Newstart, Youth Allowance and the Parenting Payment.
The Cashless Debit Card does not change the amount of money people receive from Centrelink, it only changes the way in which people receive and spend their fortnightly payments.
New Zealand implemented a similar scheme for those receiving Youth Payment or Young Parent Payment. The card works in the same way with a percentage of the individual’s benefits being loaded onto it for use buying thinks like food, clothing, medicine, household items and covering the cost of public transport.
However the card cannot be used to buy alcohol or tobacco.