In worldwide trials, Wullen said similar security measures have proven to be surprisingly successful.
But inmates will always look at ways to circumvent the technology.
"We've had prisoners in the [United] States dislocating their thumb, removing the RFID unit and putting it around a warm cup of coffee thinking [the device] is measuring body temperature. But it will still raise the alarm," Wullen said.
Wullen said the tags will not be compulsory, as that would be a violation of ACT law.
"Under the Human Rights Act in the ACT you're not allowed to make people [wear RFID tags]," Wullen said.
"What we can do is encourage inmates by utilizing a privilege-based system.
"For example, if you don't wear the RFID unit you have no chance of moving from a cell-block to a cottage."
Despite all of the positives, privacy and human rights groups have expressed alarm at the program.
Australian Privacy Foundation chair, Roger Clarke, said the organization has a number of serious issues with the trial.
"This is worse than occasionally walking past security cameras. It has direct identification and is permanent day or night throughout the prison facility," he said.
"Stop and think about what that means to a person. That's a horrible form of surveillance. To me it looks like a form of degradation, which surely isn't what we want."
Clarke also criticised the department responsible for the prison and the government for neglecting to adequately publicise these plans.
"Im concerned about the lack of details surrounding the ACT Prison Project. The government hasn't indicated how long tracking logs will be kept," he added.
But despite the issues raised by the privacy foundation, Wullen said the prison will comply with relevant regulations.
"We would by default use general ACT public service guidelines regarding prisons and corrections," he said.
"Storage under the ACT public service Records Management Act may be either seven years or indefinite depending on the information."
Dale Clapperton, chair of Electronic Frontiers Australia, said while the program itself isn't a breach of privacy, the technology behind the program represents cause for concern.
"There aren't major privacy implications of what they're actually doing because these people are in jail. They don't really have much of a right to privacy," he said.
"But the bigger concern is that this demonstrates the potential of RFID technology to actually be used for tracking people as they move about."