Last year, the government announced its plans to prevent welfare recipients from spending money on non-essential items, such as gambling and alcohol. Now, a new welfare card has been introduced that eliminates the use of cash and stop welfare payments from being used at pubs, clubs, casinos and bottle shops. The new cards will allow users to pay for items just like they would with a regular debit card.
Welfare recipients can use them to purchase all types of items, like food, clothing, fuel and healthcare products. “It would operate just like an ordinary visa or EFTPOS debit card where you could use it for anything, you could use it anywhere but you simply could not purchase alcohol or gamble with it,” says Alan Tudge, Parliamentary Secretary to the Prime Minister.
At the moment, 20 000 Australia welfare recipients already use welfare management services to help prevent them from spending money on unnecessary purchases. However, this is widely regarded as an expensive and severe method. The welfare card will provide individuals with more freedom over their own spending. In addition to benefitting individual welfare recipients and their families, it will also benefit the economy at large.
It will generate savings for the government, and allow welfare recipients to get back to work more quickly. “Individuals will move to employment more quickly as they are able to concentrate on their return to work,” reads a statement from the Department of Prime Minister and Cabinet.
“Fraud would be minimised, and over time, emergency relief payments and crisis services would be reduced through a longer-term reduction in welfare reliance”. The trial of the card will take place in Queensland. If it helps to reduce problem gambling spending and alcohol-related violence, then it may be rolled out in other states across Australia.