The federal government has been told its work-for-the-dole scheme and "healthy welfare" card won't help indigenous people.
Aboriginal and Torres Strait Islander Social Justice Commissioner Mick Gooda criticised the two programs - which came out of a review by Fortescue Metals chairman Andrew Forrest - in his annual report released on Friday.
In August the government announced Ceduna in South Australia would trial new debit card accounts that restrict spending on gambling and alcohol.
Work-for-the-dole involves 18 to 49-year-olds who are not engaged in work or study being required to undertake worklike activities for up to 25 hours a week.
"These reforms will significantly impact on Aboriginal and Torres Strait Islander peoples because of our over-representation in the welfare system," the commissioner wrote.
Mr Gooda said a "human rights approach" should apply to welfare programs, so rights can be properly incorporated into the schemes.
"In the coming months, the Australian government must meaningfully engage with our people about the design and implementation of the healthy welfare card and the work-for-the-dole program in remote communities."
The card in particular did not address the underlying causes of alcoholism, drug use and problem gambling.
"Limiting people's ability to access their welfare payments in cash does not address the reasons for this harmful behaviour, including poverty, trauma, and lack of education."
