By Australian Associated Press and Guardian staff

Welfare recipients who test positive for drugs will be placed on income management under draft laws to go to federal parliament next week.

A previous bill stalled in the Senate amid concerns about unfairness, and lapsed at the end of the last parliament.

If passed, a two-year drug testing trial will be rolled out in three locations – Logan in Queensland, Canterbury-Bankstown in New South Wales and Mandurah in Western Australia.

About 5,000 new recipients of Newstart and the youth allowance will be tested for ice, ecstasy, marijuana, cocaine and heroin.

Anyone testing positive will be placed on income management for a period of 24 months or the duration of the trial.