Another key change would see supermarkets apply technology to vet restricted purchases such as alcohol and gift cards at the point of sale.

The report said circumvention issues needed to be resolved before the card program could be extended to a larger number of communities.

Reducing gambling and substance abuse

Independent analysis shows the card has had some success in reducing gambling and substance abuse in Ceduna in South Australia and the East Kimberley in Western Australia where about 80 per cent of card users are Indigenous.

In the next two sites earmarked for the trial – the Goldfields in WA and the Bundaberg-Hervey Bay region in Queensland – most of card recipients will be non-Indigenous.

A Department of Social Security spokesman said it was anticipated that 86 per cent of those issued with a card in Bundaberg-Hervey Bay would be non-Indigenous, as would about 56 per cent in the Goldfields.

It is understood the report grew out of a conversation between Commonwealth Bank boss Ian Narev and Mr Forrest, who provided the catalyst for the card trial. They saw potential for co-operation between financial institutions, fintechs and retailers to improve the card.

Ubiquitous product offering


Minderoo Foundation special adviser Bruce Mansfield said that as the card was rolled out to more sites it was important to have a ubiquitous product offering available from all financial institutions.

"The government of course would like to make it easier for anyone who wishes to use the cashless debit card, or is required to use it under whatever welfare arrangement is put in place," he said.

"We think it is important they can go to multiple financial institutions, or the bank or building society they already use."

Other recommendations target improvements in data recording and analytics that would allow the government to track spending patterns.

Mr Mansfield, a former senior executive with Visa and EFTPOS, said the report had received a warm response from the government.

"The type of technology that we support implementing is exactly the same as what the vast majority of Australians have embraced over the past five to 10 years, contactless technology, contact chip technology, mobile technology," he said.

"The only thing different about the cashless debit card is the limiting and prohibition of certain products."