West Australian Premier Mark McGowan says while he is "broadly supportive" of a cashless welfare system he wants to ensure it works before the trial is more widely rolled out.
Mr McGowan says safeguards are needed to ensure people don't leave a community to avoid it, or make trades for drugs and alcohol.
The premier says indigenous communities also need to be supportive of the program.
"I know we have to do something dramatic, I know there's big problems out there, I just want to make sure any difficulties with this are ironed out," he told reporters on Wednesday.
Mining billionaire Andrew Forrest has led a delegation to Canberra that was due to show a video to Prime Minister Malcolm Turnbull, compiled by outgoing WA Police Commissioner Karl O'Callaghan, depicting poverty in Aboriginal communities.
The delegation is urging an expansion of the cashless welfare card.
Last week, Mr O'Callaghan pushed for the welfare card program and said pedophiles in the Pilbara region were currently using welfare payments to bribe children for sex.
He said welfare cash was also being used for drugs, alcohol and gambling at Roebourne and surrounding Aboriginal communities.
The commissioner said in an area of about 1500 people, there were 184 known child sex abuse victims. Police have charged 36 people with more than 300 offences since the operation began late last year. There are another 124 suspects.
Mr McGowan said he mentioned the problems in Roebourne to Mr Turnbull during his visit to the state last week.
"I indicated to him that I want to have a more sensible delivery of public and non-government services into that community," he said.
"The plethora of services going in there trample over one other - the time has come for that to end.
"We need a much more rational delivery of services into Roebourne. He was very, very supportive of that."