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The cashless welfare card system has been rolled out at various locations in Australia, including the Queensland region's Bundaberg and Hervey Bay, and the liberals have called it a success

Call to roll out Centrelink's cashless welfare card throughout Australia after local test success – despite loopholes allowing recipients to spend tax money on drugs, alcohol and gambling

  • The liberal MPs from Queensland have called the cashless welfare path a success
  • They say that up to 10 percent of local recipients have stopped using welfare funds
  • But this may be due to getting a job or being canceled for intentional abuse
  • The map has been criticized for countless loopholes to circumvent restrictions
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There are calls to roll out Centrelink's cashless welfare card system throughout Australia after youth unemployment declined during local trials.

The program has been tested at various locations in Australia, including the Queensland region's Bundaberg and Hervey Bay.

The state version of the system, known as Indue, removes the user's ability to buy drugs, alcohol or gamble on the card, which has 80 percent of their welfare payments in store.

The remainder of the biweekly payments is deposited into the normal bank accounts of the recipient.

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The cashless welfare card system has been rolled out at various locations in Australia, including the Queensland region's Bundaberg and Hervey Bay, and the liberals have called it a success

The cashless welfare card system has been rolled out at various locations in Australia, including the Queensland region's Bundaberg and Hervey Bay, and the liberals have called it a success

After being rolled out in January, Social Security Minister Anne Ruston said there was a decline of around 8.7 percent of welfare recipients in Bundaberg and 10 percent in Hervey Bay, according to The courier post.

The decline reflects a trend in Australia where the youth allowance and Newstart recipients fell by five percent nationwide.

& # 39; We believe the cashless debit card helps people demonstrate their personal responsibility for their finances, encourages financial independence and tackles intergenerational well-being, & # 39; said Mrs. Ruston.

Fellow Liberal party member Keith Pitt agreed and said that if the card was successful, the card should be used throughout Australia.

After being rolled out in January, social security minister Anne Ruston said there was a decline of around 8.7 percent of welfare recipients in Bundaberg and 10 percent in Hervey Bay

After being rolled out in January, social security minister Anne Ruston said there was a decline of around 8.7 percent of welfare recipients in Bundaberg and 10 percent in Hervey Bay

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After being rolled out in January, social security minister Anne Ruston said there was a decline of around 8.7 percent of welfare recipients in Bundaberg and 10 percent in Hervey Bay

& # 39; Any number of (welfare) service providers said we had a problem with children who were not being fed and money wasted on gambling or alcohol, & # 39; said Pitt.

& # 39; It is worth taking the effort and staring down the critics. I have heard that the majority have a positive experience and it makes a difference where their money is spent. & # 39;

Although about 700 people in the trial areas have not used the card since January, this is not necessary because they have been given a job.

Recipients can also be suspended from the system if it is determined that they are abusing it.

With the vanilla Visa card type, welfare recipients were able to buy alcohol, gamble, or trade for cash to buy drugs (stock image)
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With the vanilla Visa card type, welfare recipients were able to buy alcohol, gamble, or trade for cash to buy drugs (stock image)

With the vanilla Visa card type, welfare recipients were able to buy alcohol, gamble, or trade for cash to buy drugs (stock image)

Examples of people abusing the system include buying vanilla-type Visa cards with their cashless cards.

Using the special Visa – which do not have the same restrictions – recipients can buy alcohol, gamble or exchange for cash to buy drugs, according to 9 news.

Another tactic used is to overpay a taxi fare and then ask the driver for money in return.

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The card has been criticized for the many loopholes that limit people's lives – and some say it has prevented them from getting work.

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