Welfare EFTPOS card with limited buying power to be trialled

A CASHLESS debit card will be trialled in selected communities later this year to stop people spending taxpayers' money on alcohol, gambling and drugs.

Parliamentary Secretary to the Prime Minister Alan Tudge said the overall aim was to reduce violence, particularly against women.

Background: Welfare payments being spent on white goods

"The rates of violence against women in some of the high welfare communities is completely unacceptable," he said. "It's one in ten per annum in some communities."

Mr Tudge said the card would operate the same as an EFTPOS debit card.

"You could use it for anything, you could use it anywhere, but you simply could not purchase alcohol or gamble with it," Mr Tudge said.

Background: Caught in welfare cogs: disabled young man needs job

He said because card-users would have limited cash, they would not be able to purchase drugs either.

Mr Tudge said the Federal Government would continue consulting country-wide, but some leaders had publicly called for the card to for their communities.

Mining magnate Andrew "Twiggy" Forrest raised the idea for the card in an Indigenous employment review provided to the Federal Government last year.