In short:
Debate has flared again over the cashless debit card off the back of a review into its removal.
The University of Adelaide report highlighted concerns about increased alcohol abuse and gambling after the income management scheme was scrapped.
What’s next?:
The Federal Opposition is calling for the card to be reinstated, but Labor says it’s focused on delivering social services.
There are renewed calls to reinstate a controversial income management scheme, which aimed to improve the lives of First Nations people, as an academic review fuels fresh debate about its effectiveness at reducing social harm.
The cashless debit card (CDC) was a signature policy of the former Coalition government and was rolled out in trial sites across Australia in 2016, in particular in areas with high Indigenous populations.
The card quarantined 80 per cent of a person’s welfare, so it could not be used for alcohol, gambling or cash withdrawals.
The latest academic review by the University of Adelaide looked at the first four trial areas: Ceduna and surrounds, the East Kimberley, the Goldfields in WA and the Bundaberg and Hervey Bay region.
It found, while most users were happy to be rid of the card, the majority of stakeholders, notably in the WA and SA trial sites, were disappointed the scheme ended, highlighting impacts on social issues such as alcohol abuse, gambling, child neglect, violence and community safety.
The card has long divided major political parties, community leaders and its users. It was scrapped by Labor in 2022, who argued it was ineffective.
Since its introduction, the card has fuelled a philosophical battle between those who felt it unfairly stigmatised Indigenous people and others who believed the need to protect children, families and residents from social harms outweighed human rights concerns.
The card has been plagued by criticism over a lack of consultation and rigorous and reliable evidence.
A Commonwealth audit in 2022 found the Department of Social Services had not demonstrated the program was meeting its objectives, arguing its approach to monitoring and evaluation was inadequate.
Concern social problems worsened after removal
Anonymous stakeholders from the East Kimberley region raised serious concerns in the report about increases in alcohol abuse and gambling following the card’s end.
They described children not being fed or clothed properly, missing school and being out on the streets unsupervised at night.
One anonymous stakeholder told researchers the impact was immediate.
“The gambling, the alcohol, violence on the street. It’s all back,” they said in the review.
Stakeholders interviewed for the report included Indigenous leaders, business owners, and representatives from police, child protection, education, health and Aboriginal organisations.
A card user spoke about the harm they saw to children.
“You see people have [drinks] every day, [past CDC participants] got no money for food and the kids start going hungry here,” they said in the report.
But while the review found some evidence of increased hospital admissions in the East Kimberley and Goldfields, WA Police data showed no clear trends.
The report also noted other factors could be fuelling social problems including housing shortages and cost-of-living pressures.
Indigenous user glad to see back of the card
Kununurra resident and former card user Rozanne Bilminga told the ABC she was happy to see it go and felt its removal had not made a big difference in her community.
The Miriwoong woman said there were times when it left her short of cash.
“I’ve been with the debit card in the tyre shop … [they said] ‘sorry we don’t take that,’ they told me you need cash,” she said.
“I hope it doesn’t come back to us again.”
Senior Miriwoong man David Newry said while the card helped young mothers care for their children it also reminded Indigenous people of being disempowered during the ‘station days’.
“Took us back to the heydays, where people were getting rations,” he said.
“The older generation, mainly, that’s what they thought … things were being withheld without their consent.”
He said more education around substance abuse was a better alternative to the card’s reintroduction.
Calls for immediate return
Shadow Social Services Minister Michael Sukkar said the University of Adelaide review showed the card should be reinstated immediately.
He argued the rights of children living in difficult circumstances were paramount.
“Children who are missing school, children who are being neglected, children who are wandering the streets at night,” he said.
“I don’t think the University of Adelaide has got an agenda or an angle to push here. They have just confirmed what we’ve already seen out of these communities, which is devastating.”
Federal Social Services Minister Amanda Rishworth played down concerns about the cessation of the card.
“The review conducted interviews with stakeholders and former CDC participants more than 12 months ago and opinions may have changed,” she said.
“The review itself states ‘no causal statements can be issued from the analyses’ and that at the time of the interviews there were a number of factors in play in communities.
“Since that time our government has invested millions of dollars into former Cashless Debit Card sites to support programs and services that these communities wanted and are making a real difference.”
Wrap-around programs criticised
In the East Kimberley, Commonwealth funding has poured into a range of initiatives to improve the lives of Indigenous people focusing largely on education, youth crime and domestic violence.
But the review found across the board stakeholders were mostly dissatisfied with the level of wraparound services in place to help disadvantaged people following the card’s removal.
One stakeholder in the East Kimberley told researchers there needed to be a specific regional review to see what programs associated with the card had been effective.
“So that we can actually get a good line of sight over what was previously being funded under the CDC program … and therefore, what needs to continue to be funded long term,” the stakeholder said in the report.
The academic review also described widespread dissatisfaction at the level of community consultation over the card’s end, and the short time given to people on the ground to prepare.
The report also looked at why only a small number of card users volunteered to continue with income management.
It found some stakeholders and participants were not aware of voluntary income management and others felt signing up was too complicated, especially in remote areas where people spoke English as a second language.
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