Cashless debit card users able to opt out by October as Labor prepares to scrap program

Participants in cashless debit card trial sites may be able to opt out of the program within two months, as the Albanese government prepares to abolish the controversial welfare initiative.

Legislation to repeal the cashless debit card will be one of the first pieces of business introduced by the new government on Wednesday morning, the first full sitting day of the new parliament.

Labor promised through the election to abolish the cashless debit card, an income management tool that quarantines between 30% and 80% of welfare payments, and prevents it being withdrawn as cash or used to pay for alcohol or gambling.

Rishworth also flagged further discussion later this year on income management and how the system would operate in the future, following further community consultation.

Scrapping the card will save $286.5m over four years, according to the Parliamentary Budget Office.