The federal government wants to trial a new cashless welfare card in disadvantaged communities. (AAP)

The federal government wants to trial a new cashless welfare card in disadvantaged communities. (AAP) Source: AAP

A community in the Kimberley region has refused the federal government's plan to trial its Healthy Welfare Card.

TRANSCRIPT

Natalie Ahmat: The government is trying to sell the Healthy Welfare Card as a possible solution to harmful alcohol use and gambling.

RECOMMENDED STORY Govt votes continuing Income Management as some say it discriminates Indigenous Income management will continue in all its current locations across Australia. Some argue it unfairly targets First Nations peoples.

The idea, from mining magnate Andrew Forrest, is that about 80 percent of someone's welfare payment will be put into the debit card and can't be spent on alcohol and gambling.

Critics say it's income management in disguise and will unfairly affect Indigenous people.

Myles Morgan: The Halls Creek Shire Council in Western Australia, home to about 1,000 Aboriginal people, has rejected the card at a special meeting.

On advice from its Aboriginal Advisory group, the council says it supports what the government is trying to do, but the card isn't the way to do it.

This doesn't mean the government can't trial the card in Halls Creek.

Technically it doesn't need permission, but it would be a bad look if it didn't listen to the locals.

The government will soon resume talks with the Halls Creek community or possibly select another trial location in the Kimberley.

Ceduna in South Australia is still going ahead with its trial of the card early next year.

Myles Morgan, NITV NEWS