Millions recovered to be spent instead on students and disability support programs
DOLE recipients wanted on criminal charges — including terrorists — will have their payments cut off under a tough new plan to claw back hundreds of millions of dollars.
NSW
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DOLE recipients wanted on criminal charges — including terrorists — will have their payments cut off under a tough new plan to claw back hundreds of millions of dollars.
Budget forecasts released yesterday show the measures will reap at least $507 million over the next four years, with the extra money to flow to students and disability support programs.
Latest figures reveal 37 per cent of warrants in NSW are issued against dole recipients.
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Foreign fighters still receiving payments could be snared by the new scheme too.
But only if a warrant for their arrest is issued by an Australian court.
From next March, welfare recipients owing court-imposed fines will also have that money deducted from their regular payments until that debt is repaid.
Social Services Minister Dan Tehan will negotiate with states over the plan, which is not expected to raise significant amounts of money for the government.
A separate measure to target 32,000 former recipients for $1.8 billion in outstanding debts is forecast to raise $299.3 million, including more than $120 million from people still on payments despite lying about their income.
A similar program won back $114 million between March 2016 and January this year, despite an initial forecast of only $99 million in that period.
Mr Tehan said keeping welfare “sustainable … helps the government live within its means, guarantees support is provided for those who need it the most”.
“We will ensure our targeted safety net helps people when they need it, but that people receive only what they are entitled to — nothing more and nothing less,” he said.
Money will also be raised by cancelling disability payments to prisoners after 13 weeks — rather than suspending it for up to two years — in line with other payments.
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The government expects this to save $5.2 million because the shorter cancellation time is likely to mean fewer prisoners go back onto the payment after they leave prison.
It is expected about 2000 prisoners will need to have their disability retested under the change, with the payment made according to the level of care deemed necessary.
The government remains committed to a $202.5 million saving by extending the wait time for certain welfare benefits for newly arrived migrants from three to four years.
An extra $38.1 million will go to regional students while $88.7 million over four years will ensure disability program users who can’t move to the NDIS receive support.