A taxi company in Western Australia's far north has been issued a show cause notice for allegedly helping welfare recipients misuse the Federal Government's healthy welfare card.

Key points: Welfare card cannot be used to buy things like alcohol

Welfare card cannot be used to buy things like alcohol Reports that there may have been an increase in burglaries since the trial began

Reports that there may have been an increase in burglaries since the trial began Taxis accused of getting customers to buy groceries on the card

The card is being trialled in the Kimberley town of Kununurra, and cannot be used to buy alcohol.

Former prime minister Tony Abbott has spent his annual week in remote Australia.

While there, he met young students from the Clontarf Football Academy, and got some help with his AFL skills.

While in the Kimberly, he and Human Services Minister Alan Tudge spoke to stakeholders about the new welfare card trial.

Mr Abbott acknowledged the card may have created some problems, but said he believed it had enormous potential.

"It's making a difference here in Kununurra now, it's making a difference in Ceduna now," he said.

"What we need to do is take every step we can to try to ensure that the lives of people in remote areas are not blighted by the rivers of grog which have done so much to damage so many people."

AM has been told that there may have been an increase in burglaries since the trial began, with children allegedly breaking into houses to get fizzy drinks, and in some instances alcohol for their parents.

Mr Abbott said he had spoken to the police in Kununurra who told him there may have increases in burglaries.

"But they also think it's far too early to tell," Mr Abbott said.

Taxis accused of swapping groceries for cash

AM has also learnt that the card could be fuelling a thriving black market for cash.

Kununurra only has two taxi companies and Mr Tudge recently issued one of them, Bert's Taxis, a show cause notice over claims some of its employees have been getting customers to buy groceries for them on the healthy welfare card and then paying them back in cash.

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The card could be fuelling a thriving black market for cash. ( ABC News )

Mr Tudge was also told that some of the drivers were booking up big fares for short trips and then giving the customer the difference between the fare and what they were charged back in cash.

Gary Brewis, who drives a cab for Bert's Taxis, said the company occasionally had customers ask for cash out, but "that was probably more the case when it first came along."

But he said he did not believe anyone from Bert's Taxis had been involved in giving cash out.

"There was some concern ... why there was multiple deductions from some cards, and I believe it was tracked back to a white card (healthy welfare card) that had travelled across to Broome," Mr Brewis said.

Mr Brewis' boss Robert Spalding declined to be interviewed.

He said he rejected the Government's claims and was expecting an apology from them.

However Mr Spalding did concede that a previous employee, in his words had "stuffed up" and was accused of misusing the basics welfare card and selling alcohol from his cab.