Bass MHR wants assurance that cashless welfare card won't further marginalise unemployed

The federal government is attempting to expand the cashless welfare card to the Northern Territory, and is reportedly working with banks and retailers to develop a national rollout as a "mainstream financial literacy tool".

Ms Archer said there were no plans to roll out the card in Tasmania "at this stage", and she still needs to be convinced of its merit before giving the scheme her support.

She said she did "not necessarily" support its rollout to Tasmania in its current form.

"There's no doubt that there needs to be more work done in relation to a wider rollout of that system and what some of the perhaps unintended consequences might be," Ms Archer said.

MORE ON THE STRUGGLES FOR TASMANIAN WELFARE RECIPIENTS:

"Certainly there's a degree of stigma attached at the moment in places in relation to the card.

"My personal point of view, I would need to be assured that there would not be further marginalisation or stigmatisation of people before I would be satisfied of a roll out of the card in Tasmania."

Ms Archer said there had been some positive results from the card in relation to family violence and addiction behaviour, based on trials in remote parts of South Australia, Western Australia and Queensland.

Welfare groups and Aboriginal organisations have been highly critical of the card, which quarantines 80 per cent of income support payments, cannot be used to withdraw cash from ATMs and cannot buy alcohol, tobacco or be used for gambling.

The electorate of Bass has significant pockets of disadvantage, including the George Town Council area, which is among Australia's lowest socioeconomic local government areas.

Tasmanian Labor senator Helen Polley said Ms Archer could be a "strong voice in government" in rejecting the program's expansion.

"Ms Archer is somebody who understands what it's like to receive government benefits, so she knows what it's like to go through these tough times," she said.

"In Tasmania, we have lower wages, we know there is stigma already if you're unemployed, there's massive unemployment and under-employment, so this card is just going to another psychological blow.

"This is a small community. Once there's stigma, it can feel like it's attached to you."