In the remote South Australian town of Ceduna, numbers of admissions to the alcohol sobering-up centre in one year are higher than the local population.
Community leaders are hoping a trial that restricts welfare payment spending will curb the harm caused by alcohol, drug and gambling addiction.
Ceduna is the site of the first trial of the welfare debit card, which will hold 80 per cent of fortnightly payments and can't be used on alcohol or gambling.
The debit card would otherwise act like any other eftpos card but without the ability to withdraw cash.
A bill to set up the trial at three sites, including Ceduna, was passed by parliament on Wednesday with bipartisan support.
Ceduna leaders have been in Canberra this week to convince the opposition and crossbenchers to support the trial, which was co-crafted by the community.
Some are particularly concerned about children going without food and essential clothing while also being subjected to all-night parties at their homes.
Government frontbencher Mitch Fifield said when community leaders called for reform, politicians should listen and respond.
He assured the Senate the card would not excessively restrict what people can purchase.
"The card can buy anything, except for alcohol and gambling," he said.
In 2013/14 there were 4667 admissions to Ceduna's sobering up centre for a regional population of around 4400.
Another site being considered - Kununurra in Western Australia's Kimberley region - has a hospitalisation rate from assaults 68 times the national average.
The card resulted from a recommendation in a review of indigenous employment and training undertaken by mining magnate Andrew "Twiggy" Forrest.
Independent senator Jacqui Lambie has called for the program to be rolled out across her entire state of Tasmania.
But Labor senator Alex Gallacher fears restricting welfare payments could lead addicts to trade other goods and services - including sex - for alcohol and drugs.
Despite backing the legislation, the opposition is concerned it was rushed.
The Australian Greens staunchly oppose the trial and say income management programs don't work.
A 2014 study of Northern Territory income management, which holds 50 per cent of welfare deposits on the Basics Card, found there was no evidence of changes in spending patterns.
Greens senator Rachel Siewert is also concerned the debit card could incur merchant fees on transactions, which wouldn't be charged on cash purchases.
"There are so many unanswered questions here," she told the Senate.
Some crossbenchers fear people on welfare won't be able to buy items at op shops and local markets, which don't carry eftpos facilities.
Aboriginal and Torres Strait Islander Social Justice Commissioner Mick Gooda has called for a hold on the trial until communities have fully assessed the proposal.
