About 6000 young welfare recipients in two Queensland sites will have most of their payments put on a cashless debit card.
The coalition's controversial welfare card trials will be expanded to Bundaberg and Hervey Bay after the coalition government secured a victory in the Senate.
The cards prevent people from spending 80 per cent of their welfare money on gambling and alcohol.
Independent Tim Storer gave his crucial support for the bill, which passed the upper house 33-32 on Tuesday, in return for the government backing his amendment to put a new independent inquiry on the trials.
The Greens and Labor were opposed to expanding the trials, which started in Ceduna in South Australia and East Kimberley in Western Australia.
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The card has also started being rolled out to WA's Goldfields region.
Greens senator Rachel Siewert said she was disappointed Senator Storer had ignored expert evidence and voted to pass the bill.
"The card won't get people jobs, it won't help them with addictions, it will simply make their lives harder, pushing them further into poverty," Senator Siewert said.
The Queensland trial will apply to about 6000 people under 36 receiving Newstart, Youth Allowance or the Parenting Payment.
It will also be expanded to stop gift cards and vouchers being bought on the card.
The region has the second highest youth unemployment rate in Queensland at 28.7 per cent.
Social Services Minister Paul Fletcher said the sites were selected following calls from key stakeholders in the region to address issues like high youth unemployment.
"Intergenerational welfare dependence is ruining families - there are some young people who have never seen their parents, and even their grandparents, hold down a job," Mr Fletcher said.
An auditor-general report released last month found the Department of Social Services' monitoring and evaluation of the trial was inadequate.
Under Senator Storer's changes to the bill, the inquiry will be done by an independent welfare policy expert.
