Three towns to trial cashless welfare card

A close-to-cashless welfare card will be trialled in three remote communities, aimed at stopping people spending welfare payments on drugs, alcohol and gambling.

Kununurra and Halls Creek in Western Australia, and Ceduna in South Australia, will test out the concept first proposed by mining magnate Andrew 'Twiggy' Forrest.

The NSW town of Moree has declined to sign up.

Parliamentary secretary Alan Tudge told ABC Radio on Friday the card would be available to both indigenous and non-indigenous people receiving welfare payments.