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Cashless welfare card goes under spotlight

Rebecca GredleyAAP
Social Services Minister Anne Ruston hasn't yet read a report evaluating the cashless welfare card.
Camera IconSocial Services Minister Anne Ruston hasn't yet read a report evaluating the cashless welfare card.

Community groups are expected to speak up on the government's plan to make the cashless welfare card permanent, after it was revealed the responsible minister hasn't yet read a report evaluating the program.

The Morrison government revealed plans in this month's budget to make the debit card permanent in its current trial sites, and to move welfare recipients in the NT to the system.

Legislation cementing the plan is before parliament, with a Senate inquiry to put it under a microscope next Thursday.

Greens senator and deputy committee chair Rachel Siewert is dumbfounded the government is moving forward with the plans before receiving an evaluation of the debit cards by the University of Adelaide.

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Social Services Minister Anne Ruston told a Senate estimates hearing she hasn't read the report, but the department had received a draft without some key data.

Senator Siewert says it's not good enough for the department to provide a summary of the draft before the bill is debated.

"Why should we, the community, have any faith in that given their flawed summaries before?" she told AAP.

"They're pushing ahead with making these permanent, with very short notice when the community hasn't got the evaluation, when we haven't got the evaluation, when the government hasn't got the evaluation."

Taxpayers won't know how much making the cards permanent would cost as it's a commercial deal.

The plan will affect welfare recipients in the South Australian region of Ceduna, the East Kimberley and Goldfields in Western Australia, and Bundaberg and Hervey Bay in Queensland.

Almost 25,000 welfare recipients in the Northern Territory and Cape York will also be shifted on the cards from another system.

The cards freeze 80 per cent of Centrelink payments so the money can only be spent on essential items.

It prohibits people from spending money on alcohol, drugs and gambling.

Senator Siewert says it takes away people's sense of control.

She's been told about many issues with the scheme, including rent payments being delayed, resulting in it being an issue people have to manage.

The card not only attracts stigma but excludes people from making big purchases with cash.

"It's people on low incomes that are more likely to use cash, because they need cash for the second-hand economy. So you're excluded from that as well," Senator Siewert said.

An independent study of the cards from earlier this year found the cashless debit system does more harm than good.

An auditor-general report from 2018 found the Department of Social Services inadequately monitored and evaluated the scheme, making it hard to tell if there had been a reduction in harm.

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