The West Australian Government wants to take traffic fine payments out of welfare cheques.

Large proportions of Indigenous inmates behind bars are there for unpaid traffic fines, and WA Attorney-General John Quigley says he is in discussions with Federal Social Services Minister Christian Porter about ways to reduce that number.

“[It would be] a modest amount, that wouldn't … deprive them of their sustenance to life and accommodation,” Mr Quigley said.

“But it would mean that they wouldn't fall behind and be in arrears to the point where they've got to be imprisoned.

“There has to be intergovernmental arrangements, we haven't arrived at a concluded position.”

The idea to take fines from welfare payments is controversial, but has already been by the Community Development Program; a work-for-the-dole scheme that financially penalises recipients who fail their obligations.

Similar schemes have been criticised for pushing Indigenous people further into poverty.

Mr Quigley said was interested in any alternative punishments to keep low-level offenders out of jail.

“We've got mass incarceration of Indigenous people and it's of huge expense to the community and it's not stopping crime,” he said.