PROFITING from INDUE CASHLESS WELFARE CARD. LIBERALS receive $12000 from each card issued

illyria made this Freedom of Information request to Department of the Prime Minister and Cabinet

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Waiting for an internal review by Department of the Prime Minister and Cabinet of their handling of this request.

Dear Department of the Prime Minister and Cabinet,

Dear Indue Ltd – its Board, Directors and Shareholders,
I am aware that the Commonwealth Human Services Minister in the Turnbull government, Alan Tudge, is intending to transfer all welfare recipients to the ‘Healthy Welfare Card’ for income management purposes in the near future. As an Australian citizen I am aware that levels of unemployment in Australia are high and unlikely to fall soon due to the policies of the Turnbull government and that, therefore, there is a high risk that I may become unemployed in the near future and, hence, subject to the income management welfare card scheme initiated by the LNP government and, specifically, by the Human Services Minister Alan Tudge and the Social Services Minister Christian Porter.
I am also aware that Indue and its owners are to be paid between $4000 and $7000 from the Australian budget as fees for each person on the income management card system including possibly for myself in the future. I understand that how much Indue actually receives of tax payer’s money for each person in its management scheme as an administrative fee, including possibly for myself in the future, will depend upon whether the person resides in an urban or regional location. However, given that the Turnbull government intends to extend the operation of the income management welfare card scheme to all welfare recipients soon then the profit Indue can anticipate making from the scheme is in the region of $4.6 billion dollars. I note this amount is an additional amount of expenditure on top of the existing welfare budget as I understand the implementation of the welfare card system does not create any savings for the government that can be accredited against the alleged budget deficit. In my view this money would be better spent on reducing the alleged debt or on the people of Australia as a whole and not on creating profits for a private company with political connections such as Indue.
I am further aware that those amounts are to be paid to Indue as fees from the Department of Human Services budget which departmental budget is itself obtained entirely from the Australian Consolidated Revenue Fund that belongs to all the Australian people. I am aware that the fee amounts Indue is to receive, or that it has already received so far, for performing its income management duties to welfare recipients, have been, or will be, appropriated by the Department of Human Services from the Consolidated Revenue Fund for the purported purpose of providing welfare for the Australian people and not for misuse as payment of profits to a private company such as Indue.
I consider that if I am compelled to participate in the card scheme and become subject to Indue’s income management scheme in the future then Indue would become my fiduciary. In the case Hospital Products Ltd v United States Surgical Corps Justice Mason of the High Court of Australia said the following:
The accepted fiduciary relationships are sometimes referred to as relationships of trust and confidence or confidential relations …The critical feature of these relationships is that the fiduciary undertakes or agrees to act for or on behalf of or in the interests of another person in the exercise of a power or discretion which will affect the interests of that other person in a legal or practical sense. The relationship between the parties is therefore one which gives the fiduciary a special opportunity to exercise the power or discretion to the detriment of that other person who is accordingly vulnerable to abuse by the fiduciary of his position. The expressions “for”, “on behalf of” and “in the interests of” signify that the fiduciary acts in a “representative” character in the exercise of his responsibility…
Given that the Turnbull government is intending to transfer all welfare recipients to the income management welfare card scheme in the near future and given that I am likely to become unemployed in the future, it is almost certain that Indue will manage my income in the future and that it will do so purportedly in my interests and on my behalf as my fiduciary. On that basis, Indue would owe me the duties and obligations that usually accompany fiduciaries. Those duties would include, but would not be limited to, the obligation of complete disclosure to me, the prohibition against personally profiting from the performance of its duties to me, the obligation to avoid a conflict of interests and duties and a duty to protect me from any possible or actual losses from its management of my income. Losses that I would likely sustain from the income management welfare card scheme would include losses of opportunities to buy cheap goods or services at a cash price that I could not obtain by use of the card due to the restrictions on access to cash in the card system. Anticipated losses would also extend to any additional financial service fees I will incur due to me being forced to use the card in being denied access to cash. In those circumstances, in its capacity as my fiduciary, I would be entitled to hold Indue liable for those and any other possible losses I incur due to the operation of the card and Indue’s management of my income.
I also note that in the Hospital Products case his Honour Chief Justice Gibbs said:
A person who occupies a fiduciary position may not use that position to gain a profit or advantage for himself, nor may he obtain a benefit by entering into a transaction in conflict with his fiduciary duty, without the informed consent of the person to whom he owes the duty.
By this correspondence then, and on the basis that Indue will likely seek to become my fiduciary in the near future and stands to gain from that capacity, as it has already done with the huge profits it has already obtained from the income management welfare card scheme so far, I give notice that I do not consent to Indue managing my income or becoming my fiduciary at any time or of obtaining fees from anyone, including from the Government, for any income management services it purports to undertake for me or on my behalf.
I give further notice that if I am compelled to participate in the card programme I will hold Indue and its owners liable for any and all losses or liabilities I sustain due to the operation of the welfare card and of the income management system. Those losses and liabilities will extend to any legal costs I incur in challenging or remedying Indue’s management of my income without my consent.
Regards,
An Australian Citizen 2017

Yours faithfully,illyria

Dear Department of the Prime Minister and Cabinet,

Yours faithfully,

[email address]

FOI, Department of the Prime Minister and Cabinet

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    RE Freedom of Information request PROFITING from INDUE CASHLESS WELFARE CARD.LIBERALS receive 12000 from each card issued SEC UNCLASSIFIED.html

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UNCLASSIFIED

Dear Illyria,

 

Thank you for your below email to the Department of the Prime Minister and
Cabinet. As advised to you on 9 April 2019 (email attached again for your
reference), your original email was not a valid Freedom of Information
request, which means you cannot validly request an internal review (since
there is no access decision to review).

 

As also advised, the INDUE card is managed by the Department of Social
Services. If you wish to make an FOI request to that Department about the
INDUE card, you can do so here:

[1]https://www.dss.gov.au/about-the-departm...

 

Regards,

 

Adviser | FOI & Privacy Section

Department of the Prime Minister and Cabinet

p. (02) 6271 5849 | e. [2][DPMC request email] | w. [3]www.pmc.gov.au

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[8]Title: Reconcilation branding and acknowledgment: The Department
acknowledges the Traditional Custodians of Country throughout Australia
and their continuing connections to the land, waters and community. We pay
respect to their Cultures, Country and Elders both past and present. -
Description: Reconcilation branding and acknowledgment: The Department
acknowledges the Traditional Custodians of Country throughout Australia
and their continuing connections to the land, waters and community. We pay
respect to their Cultures, Country and Elders both past and present.

 

show quoted sections

Jason Notary left an annotation ()

Indue Limited is an unlisted Public Company - you can find the Shareholder Register for Indue Limited by going to ASIC and doing a search - you can get the info you need for $9.

https://connectonline.asic.gov.au/

Indue is mostly owned by Credit Unions (Member Owned Banks) - in theory Indue profits go back to small community focused banks.

As a Public Company, Indue Limited is required to publish annual reports their latest report can be found here:

Although you cannot see the exact figure the Australian Government has paid Indue Limited - their Financial details give you some idea of the income from AusGov.

It is worth noting Indue's entire revenue from "Customers" is $88 million. If AusGov is their ONLY customer - In the context of welfare that costs $158,000 Million per year - it is a rounding error. Divided by all people on a payment it is $580 per customer.

https://www2.indue.com.au/wp-content/upl...

Marto left an annotation ()

"It is worth noting Indue's entire revenue from "Customers" is $88 million. If AusGov is their ONLY customer - In the context of welfare that costs $158,000 Million per year - it is a rounding error. Divided by all people on a payment it is $580 per customer. "

"Where is the Cashless Debit Card program currently operating?

The program is currently operating in the Ceduna region, South Australia, the Goldfields and East Kimberley regions, Western Australia and the Bundaberg and Hervey Bay region, Queensland.

Visit the link below for more information about the Cashless Debit Card in each of these areas:

Ceduna region, South Australia
East Kimberley region, Western Australia
Goldfields region, Western Australia
Bundaberg and Hervey Bay region, Queensland"

https://www.dss.gov.au/families-and-chil...

Would you like to revise your per capita calculations of welfare recipients per distributions, Jason?

"Indue is mostly owned by Credit Unions (Member Owned Banks)"

Which are these credit unions/banks? Would you like to name them, Jason?