Cashless welfare card costs

The federal government is spending up to $18.9 million to trial the cashless welfare card for 1850 people.

Data published by the Department of Social Services show the government is paying the debit card provider, Indue, at least $7.9 million, while the Social Service Department's administrative costs are $2.6 million. The government is also spending $2.6 million on additional supports, such as drug and alcohol services.

The government has vowed to continue the program, despite the lack of evidence of its effectiveness. Almost half of the participants felt the card had made their lives worse.

The card costs about $10,000 a year to administer for each participant, while the person only receives $14,000 a year in Newstart payments.

Like the article? Subscribe to Green Left now! You can also like us on Facebook and follow us on Twitter.

 

If you like our work, become a supporter

Green Left is a vital social-change project and aims to make all content available online, without paywalls. With no corporate sponsors or advertising, we rely on support and donations from readers like you.

For just $5 per month get the Green Left digital edition in your inbox each week. For $10 per month get the above and the print edition delivered to your door. You can also add a donation to your support by choosing the solidarity option of $20 per month.

Freecall now on 1800 634 206 or follow the support link below to make a secure supporter payment or donation online.