The Australian Government is undertaking a Cashless Debit Card Trial (CDCT) to deliver and manage income support payments (ISPs), with the aim of reducing levels of community harm related to alcohol consumption, drug use and gambling. 

In the CDCT, a proportion of an individual’s ISP is directed to a restricted bank account, accessed by a debit card (not allowing cash withdrawals). Participation in the CDCT is mandatory for all working age ISP recipients who live in the selected trial sites. In addition, wage earners, Age Pensioners and Veterans Affairs Pensioners who live in the trial sites can opt-in to the CDCT. 

To date, the CDCT is being implemented in Ceduna and Surrounds in South Australia and Kununurra / Wyndham (East Kimberley) in Western Australia. 

This report is focused on identifying initial conditions prevailing in the trial sites before the implementation of the CDCT and it is primarily based on the findings of qualitative research (interviews and focus groups) with key stakeholders in each of the trial sites. It also includes some coverage of administrative data that was available at the time of report writing. 

Findings

• The initial conditions qualitative research with stakeholders in Ceduna, Wyndham and Kununurra found widespread local concern about high levels of alcohol consumption and, to a lesser extent, illicit drug use and gambling activity.
• Stakeholders indicated that these issues had become progressively worse over the past 5-10 years and that the local communities were experiencing significant adverse impacts. In particular, most stakeholders felt that excessive alcohol consumption was at a “crisis point”, and was having wide-ranging negative impacts on individuals, their families and the community.
• Most stakeholders who participated in the research felt strongly that there was a need for something to be done to address these issues and were broadly supportive of the CDCT.