Sophie Harmann has been on the cashless debit card for two years and has faced homelessness and financial stress while on it.
"I'm a sole parent, and we lost our rental because we couldn’t pay cash rent," she told SBS News.
"[I've] suffered homelessness and constant issues paying rent, buying cheap items, or even accessing a coin-operated laundromat.”
The Bundjalung and Wathaurong woman moved to the Queensland city of Bundaberg, a trial site of the scheme, to study a Certificate III in disability care while pregnant, and was put on the card when she started receiving Centrelink payments.
She said it has been a nightmare.
"It really put us out financially... My closest food source [I] couldn't use the card at. I pay a surcharge on fruit and vegetables because there is no other option."
Sophie Harmann says living under the cashless debit card scheme has been a nightmare. Credit: Sophie Harmann
The report stated the Department of Social Services, which runs the program, had "not demonstrated that the CDC program is meeting its intended objectives" and had not outlined performance targets.
Social Services Minister Amanda Rishworth said the government’s actions are "disappointing".
"There is no evidence that suggests this was effective, efficient use of taxpayers money. The government didn’t even put in targets [to track the program outcomes]," she told SBS News.
Labor has promised to scrap the scheme but is considering allowing people to participate in the scheme voluntarily.
"Some people may want to continue with some income management support, and we will look at that. I want to look through all the options."
The government has not announced a timeframe for when the compulsory scheme would end, but Ms Rishworth said will consult widely with community groups.
Large impact on Indigenous populations, advocates say
It has already been welcomed by some organisations, including Northern Territory Council of Social Service (NTCOSS).
The group's CEO Deborah Di Natale said the program has been extremely damaging.
"There was never a solid evidence base to support rolling out this income management across the Northern Territory or any parts of the country," she said.
"I am extremely pleased to see that in the recently elected government... it is implementing this policy, and it has listened to communities across the country - particularly those in the Northern Territory.”
The scheme has been widely condemned for targeting areas with high Indigenous populations.
"Almost 80 per cent of people on CDC are Aboriginal and Torres Strait Islander. When you have a policy position with impacts like that, what you've done is implement a really discriminatory policy," Ms Di Natale told SBS News.
Scheme could be used on an opt-in basis
The organisation is in favour of an opt-in option for communities.
"In remote communities it is actually a cash economy," she said.
"Often they have a number of op shops there which is where people are buying their children’s clothes - that is all a cash economy."
Sophie currently lives in a caravan park with her two-year-old daughter. Alternative accommodation has been hard to find as the providers prefer cash payments.
She said with the cashless debit card program scrapped, the future is looking brighter.
"My plan is to find some secure rental and childcare and return to work."
