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ABC News
ABC News
National
Lucy Loram, Russell Varley, and staff

Cashless Debit Card trial to end with auditor-general's report the final nail in its coffin

Kerryn Griffis is overjoyed at news the card scheme is being tossed out by government. (ABC Wide Bay: Scott Lamond)

Bundaberg's Kerryn Griffis is "rejoicing" after a "traumatic" three years as a Cashless Debit Card (CDC) user.

The mother of five is one of thousands of Australians whose welfare spending was restricted in the controversial trial.

"It has massively negatively impacted mine and my kids' lives. It has been a nightmare being on the card," Ms Griffis said.

The trial, which began in May 2019 in the Hinkler region, saw welfare recipients under the age of 35 receive 80 per cent of their payments on a card which restricted spending on alcohol, gambling, and cash withdrawals.

A damning Australian National Audit Office (ANAO) report into the performance of the trial, published last Thursday, was the final nail in the coffin as the new Labor government confirmed the card will be tossed.

The independent auditor-general found "the DSS (Department of Social Services) has not demonstrated that the CDC program is meeting its intended objectives" of supporting recipients to "better manage their finances and encourage socially responsive behaviour".

Ms Griffis and her five children, all under the age of 12, were forced to move into her mother's three bedroom house because of the stigma she said came attached to the card.

"Throw in the rental crisis and it was just the perfect storm really."

Since being put on the trial three years ago, Ms Griffis struggled to find a home for her and her five children. (ABC News: Col Hertzog)

Labor confirms trial will be terminated

Minister for Social Services Amanda Rishworth said the federal Labor government would deliver on its commitment to end the trial.

"This was a clear commitment Labor took to the election. I will be delivering on our commitment."

Minister for Social Services Amanda Rishworth confirmed the CDC scheme would be terminated across Australia. (ABC News: Matt Roberts)

She said the ANAO report showed the card was "forced onto communities".

"The Cashless Debit Card was a Liberal Party ideological obsession," Ms Rishworth said.

"I will be talking to the local communities affected to talk about what local solutions need to be in place to support them going forward."

Ms Rishworth did not say when the trial would be terminated.

Supporters wanted consultation

The Member for Hinkler, Keith Pitt, who has been a strong supporter of the card, said Prime Minister Anthony Albanese has walked away from consultation on the issue.

"He made commitments during the campaign that anything that would happen in the trial sites would be done in consultation with the local community," he said.

Despite the clear message from Labor, Mr Pitt was confident any change in the Hinkler trial could not happen immediately.

"My understanding is for it to be changed would require a change of legislation," he said.

"The House won't meet, I believe, until late July. That will take some time, but the community locally is strongly supportive.

"They know that it has had an impact in a positive way, and yet once again the proposal from the Labor Party is quite simply to get rid of it and replace it with nothing."

Card splits community

Despite the unfavourable findings of the ANAO report, some Hinkler residents despaired over the trial ending.

Faye Whiffin from the CDC reference group in Hinkler says terminating the trial will be a step backward for the region.  (ABC News)

Faye Whiffin was a member of the Department of Social Security's reference group which had been assessing the trial and said the decision to bin the card did not reflect the feeling on the ground.

"We haven't, to the best of my knowledge as a group, been asked by the auditor-general's department [to comment]."

Ms Whiffin said she was concerned Hinkler would be taking a step backwards as the trial was cut short.

"I think that kids will go back to going without food, without essentials," she said.

"That was one of my main driving forces — making sure kids got fed, they got their medication, that money wasn't going back into poker machines or to booze.

Other prominent figures in the community were unwavering in their opposition to the card.

Fraser Coast Regional Council Mayor George Seymour said he was pleased to see the card turfed.

Mayor George Seymour has been against the scheme since it was first introduced in Hervey Bay. (ABC Wide Bay: Lucy Loram)

"I've been opposed to the card since it was announced. It is a stigmatising measure which hurts the most disadvantaged in our community," Mr Seymour said.

Ms Griffis said life without the card meant her family would have their freedom back.

"I cannot wait," she said.

"I'm going to be able to have flexibility with my finances, I'm not going to be restricted by which bill I will and won't pay, and my kids are looking forward to having pocket money again."

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