The Federal Government has been accused of rushing through new laws that pave the way for a trial of welfare quarantining.

The plan will allow up to 80 per cent of a person's payment placed on a bank card that cannot be spent on alcohol or gaming.

The bill passed the Senate last night, with the first trial to start next year in the South Australian town of Ceduna.

But Greens community services spokeswoman Rachel Siewert said there were several unanswered questions about the Healthy Welfare Card.

"I don't think it should have been rushed through the Senate at this stage when they don't have the answers to these questions around the practicalities of how this card will operate," she said.

"It's going to be more expensive for someone on income support to use this card if the merchant fees apply.

"When you're on income support, every dollar counts. So that's an extra cost that somebody on income support is going to have to bear."

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Mayor of Ceduna Allan Suter said the trial of the card was a landmark move that should save lives.

Most people affected by the card trial around Ceduna would be Aboriginal.

Mr Suter said it was a significant step forward in his region's battle against alcohol problems.

"It probably wasn't an easy decision for some MPs because of the fact that it does restrict some people's rights, so it's a very courageous and landmark decision and one which will help a lot of people I believe — which may well be rolled out in further towns," he said.

"We've seen too many people die young — we don't want to see that again — so hopefully this will be successful and guarantee that we don't face those sorts of issues on a regular basis."

The bill passed with the support of the Labor Party and seven of the eight crossbenchers.

The Federal Government hopes to soon announce a second trial site in Western Australia's Kimberley region.

Assistant Social Services Minister Alan Tudge said anyone put on the trial in Ceduna who moves away from the area will still be part of the trial.

"The nature of this card is that it will work at every single location in the country, but there's not a single bottle shop in the country where it will work, not a single gambling house in the county where it will work, and not a single ATM where you'll be able to withdraw cash from," he said.

A Senate committee recommended vulnerable welfare recipients should be allowed to exit the trial.

The bill was passed without amendment.