Centrelink change proposed by Peter Dutton

Peter Dutton has promised to reintroduce a cashless debit card for benefit recipients in Indigenous communities, to stop them wasting money on alcohol and gambling.

The Opposition Leader made the pledge during a speech in the Labor-held seat of Chisholm, Melbourne, on Sunday, as the election campaign got underway before the date was announced.

“In Indigenous communities where drugs and alcohol are prevalent, we will, in consultation with communities, reintroduce the Cashless Debit Card for working-age benefit recipients to ensure children receive the parental support they deserve,” Dutton said .

The cashless card was introduced in 2016 to prevent benefit recipients from spending money on alcohol, withdrawing cash or gambling, limiting their spending mainly on groceries.

Up to 80 percent of welfare recipients’ income was quarantined, while only 20 percent of their benefits arrived in their bank accounts.

A trial of the card from 2019 to 2021 in the Bundaberg and Hervey Bay region found it had stopped more than $400,000 of welfare money being spent on alcohol, cigarettes and gambling.

However, Labor abolished the card shortly after coming into government in 2022.

Social Services Minister Amanda Rishworth said at the time that the card had not worked and that it was “time to give people their autonomy back.”

The Anthony Albanian government scrapped welfare cards shortly after coming to power in 2022

“So many people’s lives were negatively impacted because they didn’t have enough cash… to live their lives,” Rishworth said.

The Parliamentary Budget Office said getting rid of the map would save the government almost $290 million over four years.

The opposition voted against scrapping the card, arguing it would lead to an increase in alcohol and drug abuse, with associated violence in vulnerable communities.

The date of the federal election has yet to be announced, although it should take place on or before May 17.

Both Dutton and Prime Minister Anthony Albanese are already campaigning and making election promises.

On Sunday, the Liberal Party leader said he would also establish a royal commission into sexual abuse in Indigenous communities and launch a full audit into spending on Indigenous programs to rein in waste.

“There are communities where safety, housing, health, education and employment are critical issues,” he said.

‘That is where our efforts should be focused.’