The Liberal National Party Queensland convention in Brisbane has narrowly passed a resolution calling for the Federal Government to scrap Abstudy payments.

The program provides financial assistance to Indigenous students enrolled in university, TAFE or apprenticeships.

Young LNP State Secretary Luke Barnes moved the resolution.

"We believe that there should be one single welfare system for all Australians," he said.

"That will add to Indigenous reconciliation, it will add to the appreciation and recognition that Indigenous people have within Australia.

"I believe we are one country and as such we should have one welfare system."

But Federal MP Paul Neville argued against the move, saying that education is the key to breaking down Indigenous disadvantage.

"Please, I beg you do not do this," he said.

"If you want to put up a motion [for] some future states to rejig Abstudy, to make it more effective I'd support that.

"But to remove it I think it would brand us as a mob of bigots."