THE Cape York indigenous welfare reform trials will be funded for at least another two years, the federal government has announced.
Indigenous Minister Jenny Macklin says the government has committed a further $24.5 million to build on the success of the program.
A new part of the trial will see welfare payments withheld from parents whose children aren't enrolled in school.
Youth workers will also be hired to encourage disengaged youth to undertake education or training.
"We have seen a significant increase in school attendance through the trial," Ms Macklin said.
"However, more needs to be done to ensure all children are getting a decent education and attending school every day."
The trials have run since 2008 in four indigenous communities - Coen, Aurukun, Mossman Gorge and Hope Vale.
In March, Queensland Premier Campbell Newman backflipped on a decision to end the trial, saying the state government would spend another $5.65 million on the program.
Federal Opposition Leader Tony Abbott has said he wants the reforms expanded to communities across the country.
The Regional Organisation of Councils of Cape York and Torres Shire (ROCCY) opposes continuing welfare reform, which it said had failed.
Hope Vale Mayor Greg Mclean agreed with ROCCY's position, adding that outsiders had done nothing but create rifts in the community.
However, Coen elder Alan Creek said more children were going to school because of the welfare reform, which he would like see remain in place for another 18 months to two years.
An independent report on the reforms, released in March, said positive changes in education and social behaviour had been seen in the trial communities.
But gains in housing and economic development had been limited.
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