welfare – Michmutters
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Australia

Future of income management unclear as the end of the cashless debit card draws near

Legislation to scrap the controversial cashless debit card program looks set to become one of the first bills debated by the new parliament, as the federal government pushes ahead with delivering its election commitments.

While it raises questions for thousands of people on the card, another form of income management in the Northern Territory — affecting more people — could also end shortly: the Basics Card.

So, what does all of this mean for people in communities, who have long had their welfare managed?

A cross stands on a hill above Santa Teresa as the sun rises.
Remote NT communities like Santa Teresa in Central Australia have been subjected to income management since 2007.(ABC News: Greg Nelson)

What’s happening with cashless welfare?

The cashless debit card trial quarantines up to 80 per cent of a person’s welfare payments, and cannot be used to buy alcohol, gamble or withdraw cash.

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Categories
Australia

Cashless debit cards linked to buy now, pay later services raise concerns ahead of end of scheme

The number of people using buy now, pay later services connected to their cashless debit card (CDC) has complicated the federal government’s plan to abolish the program.

During the election campaign, Labor promised to end the scheme, which quarantines 80 per cent of a person’s welfare payments onto a card that cannot be used for alcohol, gambling or cash withdrawals.

More than 17,000 welfare recipients in Western Australia’s Goldfields and East Kimberley regions, Ceduna in South Australia, as well as Bundaberg and Hervey Bay in Queensland, are on the card.

A significant number of them have linked their card to buy now, pay later services like Afterpay, which allows a person to buy products up front but pay them off in installations.

Social Services Minister Amanda Rishworth said it means transitioning people off the card could take some time.

“A number of deductions that participants have connected to their card means that you can’t just close the card overnight,” she said.

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