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| Coalition hails 'success' of cashless welfare card and says Kalgoorlie will be next site | Coalition hails 'success' of cashless welfare card and says Kalgoorlie will be next site |
| (35 minutes later) | |
| The Turnbull government has announced a third trial site for its cashless welfare debit card, choosing Kalgoorlie in the Goldfields-Esperance region of Western Australia. | The Turnbull government has announced a third trial site for its cashless welfare debit card, choosing Kalgoorlie in the Goldfields-Esperance region of Western Australia. |
| It says its two existing trial sites – in Ceduna, South Australia, and in the East Kimberley region of WA – have had significant reductions in alcohol consumption and gambling since trials began in March and April last year. | It says its two existing trial sites – in Ceduna, South Australia, and in the East Kimberley region of WA – have had significant reductions in alcohol consumption and gambling since trials began in March and April last year. |
| To coincide with the announcement of a third trial site, the government has released a final evaluation report of its two existing trial sites, conducted by ORIMA Research. | |
| It found the cards have had a “considerable positive impact” in the communities where they have operated and concludes the card “has been effective in reducing alcohol consumption and gambling in both trial sites and [is] also suggestive of a reduction in the use of illegal drugs”. | It found the cards have had a “considerable positive impact” in the communities where they have operated and concludes the card “has been effective in reducing alcohol consumption and gambling in both trial sites and [is] also suggestive of a reduction in the use of illegal drugs”. |
| In relation to alcohol, it found 41% of people who drink alcohol have reported drinking less frequently and 37% of binge drinkers were doing so less frequently. It also found a decrease in alcohol-related hospital presentations, including a 37% reduction in Ceduna in the first quarter of 2017 compared with the first quarter of 2016. | |
| In the East Kimberley, it found decreases in alcohol-related pick-ups by the community patrol services in Kununurra (15% reduction) and Wyndham (12%), and a reduction in referrals to the sobering up shelter in Kununurra by 8%. | In the East Kimberley, it found decreases in alcohol-related pick-ups by the community patrol services in Kununurra (15% reduction) and Wyndham (12%), and a reduction in referrals to the sobering up shelter in Kununurra by 8%. |
| It found a decrease in the number of women in East Kimberley hospital maternity wards drinking through pregnancy. | It found a decrease in the number of women in East Kimberley hospital maternity wards drinking through pregnancy. |
| In relation to gambling, it found 48% of gamblers reported gambling less. In Ceduna and surrounding local government areas, poker machine revenue was down 12% during the trial period, which is the equivalent of almost $550,000 less spent on poker machines in the 12-month trial. | |
| The cards have been used by 2,141 people across both trial sites and a large majority of participants have identified as being Indigenous Australians. | The cards have been used by 2,141 people across both trial sites and a large majority of participants have identified as being Indigenous Australians. |
| The cards aim to reduce the levels of harm underpinned by alcohol consumption, drug use and gambling by limiting participants’ access to cash and preventing the purchase of alcohol or gambling products (other than lottery tickets). | |
| Eighty per cent of participants’ income support payments, as well as other supplementary payments, are directed to a restricted bank account, accessed by the debit card. | Eighty per cent of participants’ income support payments, as well as other supplementary payments, are directed to a restricted bank account, accessed by the debit card. |
| Participation in the trials has been mandatory for all working age recipients of income support payments in the trial sites. Wage earners, age pensioners and veterans’ affairs pensioners who live in the trial sites can volunteer for the cards. | Participation in the trials has been mandatory for all working age recipients of income support payments in the trial sites. Wage earners, age pensioners and veterans’ affairs pensioners who live in the trial sites can volunteer for the cards. |
| Alan Tudge, the minister for human services, who has led the design and implementation of the trials, said the evaluation report showed the trials had been a success in reducing alcohol, gambling and drugs. | |
| “The card is not a panacea but it is has led to a fundamental improvement in these communities. There are very few other initiatives that have had such impact,” Tudge said on Friday. “As many local leaders noted, these communities were in crisis largely due to massive alcohol consumption paid for by the welfare dollar. | |
| “I hope that we can look back in a decade’s time and say that this initiative was the beginning of the turnaround.” | “I hope that we can look back in a decade’s time and say that this initiative was the beginning of the turnaround.” |
| The Nationals leader, Barnaby Joyce, said the cashless welfare card had been a “great success” but he did not say if it should be rolled out nationally. | |
| “We are having great success in reducing alcoholism and also the things associated with it such as family violence, women getting beaten up,” Joyce said on Friday. “What we can say at this point in time is it’s got a good outcome. | |
| “We are also noting places that have had the cashless welfare card, they certainly don’t want to go back to the alternate system. They like the safer society they live in. | “We are also noting places that have had the cashless welfare card, they certainly don’t want to go back to the alternate system. They like the safer society they live in. |
| “We should be supporting that. Especially for families, especially for mothers, for kids.” | “We should be supporting that. Especially for families, especially for mothers, for kids.” |
| In the 2017-18 budget, the Turnbull government announced it would expand the cashless debit card into two new regions. | In the 2017-18 budget, the Turnbull government announced it would expand the cashless debit card into two new regions. |
| Friday’s announcement refers to one of those new regions. A fourth location will be announced in coming months. | Friday’s announcement refers to one of those new regions. A fourth location will be announced in coming months. |
| The government will still require legislative change to come into effect to expand the card. | The government will still require legislative change to come into effect to expand the card. |