The federal government reported the success of the cash-free benefits cards piloted in (South Australia) Seduna (Ceduna), South Australia, and (Western Australia) Kununara (Kununurra), Western Australia, which will continue to be used in both towns.
It is understood that the government commissioned market research firm Orima Research to investigate the pilot policy and made the decision on the basis of reports received.
It is reported that the pilot non-cash welfare card is mainly to limit the recipients of benefits to receive cash.
Eighty percent of those receiving benefits in two towns use a cash-free welfare card that cannot be used to buy alcohol or gamble. The remaining 20% receive benefits through regular bank accounts, so they can withdraw the money.
In Seduna and Kununara, cash-free debit cards have been used in daily life and are reviewed every six months, said Human Services Secretary Tage (Alan Tudge). The implementation of the card makes alcohol disputes, gambling and drug abuse problems have been improved.
But researchers also found that some people are looking for new ways to break the limit on cash-free benefits cards. For example, some merchants charge high fees for products or services and return cash, etc.
In addition, the review found that the crime rate among children in Kununarra was even higher because some children wanted cash. Douna, on the other hand, has seen more cases of domestic violence. But the report said it was unclear whether the increase in domestic violence was linked to changes in local reporting requirements and increased community awareness.
As to whether the government would introduce the cash-free benefits card across Australia, Tucker said no decision had been reached on the matter.
