A Liberal senator who led mining magnate Andrew Forrest's indigenous jobs program has called for an expansion of the cashless welfare card alongside employment services reform.
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Matt O'Sullivan headed up GenerationOne, which was funded through the billionaire and his wife Nicola's charitable foundation Minderoo, before entering federal parliament at the May election.
In his first speech to the upper house on Tuesday, Senator O'Sullivan said the program's success was down to turning the training and employment services system on its head.
Under current arrangements, jobseekers often register for Newstart before being sent to jobactive for training.
"The service provider would enrol them in a course and then hope for the best that they would get a job - by and large it is still how it operates today," Senator O'Sullivan said.
"More often than not, this is just training for training's sake.
"The problem is that jobseekers' cycle in and out of courses, with no job to show for it at the end."
The WA senator said service providers needed better incentives, while training should be better tailored to employers and jobs.
He noted the jobactive contract is the second-largest procurement of government services, only behind defence and should be subject to further reform.
"Failure in this policy area is not an option. The training for training's sake issue not only wastes an enormous amount of taxpayers' dollars but it completely depletes the trainee of any sense of pride and aspiration."
Senator O'Sullivan also wants the controversial cashless welfare card extended after further investment in the technology.
"It's a critical tool to help communities dealing with the devastating effects of alcohol, gambling and drug abuse," he said.
"I'd like to see a wider rollout into other vulnerable communities across Australia."
The card puts 80 per cent of welfare payments on a debit card which can't be used for alcohol, gambling, cash withdrawals or some gift cards.
Senator O'Sullivan, who lobbied for the scheme's introduction in 2015, believes items should be blocked rather than merchants to make the card "a tool of empowerment".
The WA Liberal is a former tradesman who became a youth worker after volunteering with his church group.
Australian Associated Press
