*The Federal Government has introduced legislation to abolish the cashless welfare card . IMAGE: ABC News/Isabel Moussalli via CathNews.*

Catholic Social Services Australia has applauded the Albanese Government’s decision to abolish the cashless debit card, which it says was “unjust and unfair” and had “stigmatised and divided Australia”.

Legislation to repeal the card was introduced by the new Government late last month.

“Since the introduction of the card by the Morrison government in 2016, thousands of First Nation and marginalised Australians have lost control of their freedom to manage their incomes without any discernible improvements in social or employment outcomes,” said CSSA’s executive director Monique Earsman.

“Following several reviews and reports on the card, it is now clear the scheme has failed to deliver any widespread or sustained benefits – either to individuals or to their communities.

“The time has come to scrap the scheme, go back to the communities and work with them to establish effective and supported income management schemes,” Ms Earsman said.

In June, a scathing report from the Australian National Audit Office found the previous Morrison government had not demonstrated whether the scheme was working despite operating trials across the country for more than five years.

According to Social Services Minister Amanda Rishworth, scrapping the scheme will enable approximately 17,300 participants to move off the card with the option of voluntary income management.

In a statement, Ms Rishworth said the Government would also ensure the Family Responsibilities Commission can continue to support community members in the Cape York region by re-establishing Income Management.

This article is drawn from a CSSA media release.