Shadow Human Services Minister, Kelvin Thomson, said the government is attempting to ask taxpayers to foot a billion dollar bill without producing any evidence showing the extent of fraud, or exactly how the Access Card will solve the problem.

Thomson said the Labor party is supportive of any measures to reduce health and welfare fraud, but only if they are cost effective.

"This is the real issue for the Access Card and the government: whether the process, timetable and design proposed by the government is the best answer to fraud," Thomson said.

"Until the government explains how the registration process will counter existing problems with document authentication and proof of identity processes, Labor remains skeptical of the government's claims."