Cashless welfare cards will be rolled out to thousands of welfare recipients in the Queensland cities of Bundaberg and Hervey Bay from early next year.
About 6700 people living the electorate of Hinkler in the state's Wide Bay region will be forced onto the federal government scheme, which is designed to stop welfare-dependent people from gambling, and/or buying drugs and alcohol.
The regional Queensland area was announced on Thursday as the fourth location for the rollout, after WA's Goldfields and East Kimberley regions, and Ceduna in SA.
People aged 35 and under and who are on unemployment or parenting benefits will have 80 per cent of their payments placed onto the debit card.
Human Services Minister Alan Tudge says Hinkler was chosen because of its high youth unemployment, intergenerational welfare dependence and the prevalence of alcohol, drugs and gambling among young parents.
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More than 20 per cent of its young people are unemployed, while 90 per cent of those under 30 on welfare also had a parent who received payments in the past 15 years.
Mr Tudge and federal MP for Hinkler Keith Pitt say without intervention, about 57 per cent of those people under 30 will still be receiving benefits in 10 years' time.
"The consultations also revealed significant problems with alcohol, drugs and gambling, particularly among young families," they said in a statement on Thursday.
"Many community sector leaders were concerned that money meant for children was not being spent on them."
The federal government will invest an additional $1m into community services to complement the rollout of the scheme.
Mr Tudge and Mr Pitt say it will help with any "unmet need as a result of the card".
