Welfare reform trials in four indigenous communities in northern Queensland will continue until at least the end of 2015.
The state government had previously committed to funding the Cape York scheme, which includes withholding dole payments from parents whose children don't go to school, until the end of this year.
However, Tuesday's budget included $8 million to extend the reforms which were rolled out in Coen, Aurukun, Mossman Gorge and Hope Vale in 2008.
The federal government has already committed to funding the trials until the end of next year.
Last year Queensland Premier Campbell Newman backflipped on a decision to axe the program at the end of 2013.
The reforms aim to restore social norms, boost development, improve education and health, and reduce alcohol and welfare dependency in communities.
More than $100m has been spent on the scheme which, according to a report released last year, has led to some positive changes in education and social behaviour.
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