The card is also set to be trialled in the east Kimberley region of Western Australia.
The card works like a normal bank debit card, except the owner will not be able to withdraw money.
Residents opposed to the card have already had one large protest, saying it penalises the poor and will have a significant impact on the large Aboriginal community in the area where unemployment is high.
"The people, black and white, are all banding together and we have already had one march and we will have another one, another protest," Susan Thiselton, one of the organisers of the protest, told BuzzFeed News.
"A lot of people had no idea they were going to be on it and they're getting very upset. Getting letters in the mail and suddenly realising they would be on it".
"You simply can't control people like this".
Thiselton says the community also had fears that the introduction of the card will see the crime rate skyrocket and put elders, who are are exempt from welfare quarantining and largely carry cash, may be victims of opportunistic robberies.
"We're worried about the crime, the old people and the tourists. The police seem to be anti it as well," Thiselton says.
"We reckon you can expect more breaking into cars and the stealing of handbags. The ATM will be a dangerous place to go, especially at night time".
Everyone on Centrelink benefits, aside from those receiving an age pension and those on veteran payments, will be issued a card and will have 80% of their payments quarantined to the card while 20% will be available as cash.