The Australian Greens have criticised the Coalition’s decision to make the cashless welfare card available to everyone on income management in the country’s Northern Territory.
Today, Paul Fletcher, the family and social services minister revealed that 22,500 people who are currently on income management will start using the cashless debit card instead of the BasicsCard from January 2020. The BasicsCard, which is currently available, allows the recipients to use 50% of the received welfare at certain stores only. In comparison, the new cashless debit card will allow 80% of the welfare money to be used at some stores only.
As Casino Guardian has reported earlier, the new cashless welfare card comes as part of the Government’s efforts to limit welfare recipients’ access to gambling, drugs and alcohol. It will put an end to a collaborative programme of income management under which welfare recipients were able to decide what portion of their Centrelink payments should be used for their bills and what part to be set aside.
The Government has revealed that existing participants are set to stay with 50% of their welfare suspended for spending in certain stores unless the community makes a request for the percentage to be increased through consultations. The Greens, however, have shared fears that the measure would result in stricter limits to be imposed on the entire community.
Government Willing to Help Disadvantaged Areas in the Country
The Government, however, justifies its decision with the explanation that the measure would end up with a reduction in crime, violence and harm associated with illegal drug use, alcohol consumption and compulsive gambling. It disagrees with the new welfare cashless debit card critics who are saying that the new rules would affect people with lower incomes who mainly depend on purchasing second-hand goods and services.
The authorities have been seeking an efficient solution that would put an end to people spending their welfare money on gambling products, drugs and alcohol. The Federal Government has been willing to help certain areas of the country which, according to the Department of Social Services, are home to communities with an increasing number of problem gamblers, high rates of unemployment, as well as people at risk of domestic violence, drug or alcohol abuse, etc.
The decision to change the existing welfare system with the new cashless debit card came after the Australian National Audit Office released a report in July 2018, according to which the evaluation and monitoring of the Department of Social Service were not adequate. At the same time, rising crime rates, and the constantly increasing number of problem gamblers have been found worrying, especially at more disadvantaged areas, where there were more people depending on welfare payments.
According to reports, one in five people in such areas receive some form of financial support from the Federal Government, but they are also more susceptible to gambling-related harm or buying tobacco, alcohol or other substances which could make their health and financial state even worse.
- Author
Olivia Cole
