The debate over the Cashless Debit Card—a measure started as a means to curb spending on alcohol in remote communities—has resurfaced in Australia following a review into its removal.
Originally proposed by Labor, it was later adopted by the Coalition in the form of trials in certain parts of Australia.
Under these trials, people in receipt of Newstart had around 80 percent of their income quarantined to the cashless card, meaning they could not use that money for purposes such as gambling or buying alcohol.
Opponents were frustrated as it restricted beneficiaries to having only 20 percent of their income as cash. Additionally, there were reports of difficulties in paying certain bills and occasional card failures, which left them out of pocket or compelled to drive long distances to shop.
Labor scrapped the card in 2022, deeming it was not an effective measure in curbing alcohol use or gambling.
A recent government-commissioned University of Adelaide study into the card’s removal looked at four card trial sites—Ceduna, East Kimberley, the Goldfields, and Hinkler.
The university’s review reported that some communities had noticed a return to antisocial behaviours in the wake of the removal of the cashless card.
Concerns centred around parents spending money on alcohol rather than food, resulting in hunger among children.
Concerns Raised Over Privacy and Dignity
The No Cashless Debit Card Australia group, which fought to help remove the cashless card trials, said attempts to bring the card back were deeply concerning.No Cashless Debit Card Australia founder Kathryn Wilkes said the cashless card hurt everyday people and all discussions around its reimplementation needed to be shelved.
As an advocate against the card, she said she had received cases of some people going to extreme lengths, including being forced to make 160km round trips in order to shop if card readers malfunctioned.
Ms. Wilkes said many people on the card were denied dignity by having to divulge their spending to the government and private companies running the cashless cards.
“You’re not going to cure drug or alcohol addiction by putting someone on a card,” Ms. Wilkes said in a video posted to the campaign’s social media page.
A separate study by the University of Adelaide conducted last month found that, in general, people shopping with cards as opposed to cash tended to spend more on purchases.
The removal of the cashless card was heavily criticised by Hinkler MP Keith Pitt, who had been a major advocate for the card in his electorate.
The MP said that while the card did not fix all ills in society, it had created some positive changes in curbing illicit spending.
“It was a change for the positive and should be supported,” he said in a statement.
