Coalition fails to strike welfare deal with Nick Xenophon Team

A critical deal between the Nick Xenophon Team and the Turnbull government over welfare reform has not been sealed.

Crossbench MP Rebekha Sharkie in the House of Representatives.

A critical deal between the Nick Xenophon Team and the Turnbull government over welfare reform has not been sealed, with the minor party concerned about a number of changes.

The Australian revealed last month the NXT would vote for most of the bill’s measures in exchange for a $40 million funding package to deliver rehabilitation services and provide specialist drug and alcohol addiction training to regional doctors.

NXT social services spokeswoman Rebekha Sharkie said her party was “not yet satisfied that our concerns in relation to a ­couple of the (measures) have been addressed”.

She would not specify which measures were problematic but is due to meet Social Services Minister Dan Tehan this week to continue negotiations.

The overhaul, which no longer includes random drug testing of welfare recipients, would save $370m over the forward estimates and introduce a tougher compliance “demerit points” system.

Seven welfare payments would also be scrapped or consolidated and replaced with one “jobseeker” payment from 2020 onwards.

The government wants to push its welfare reforms through the Senate within the fortnight but will need the three NXT ­votes because it does not have the   ­support of Labor or the Greens.

Liberal Democrat senator David Leyonhjelm was the only crossbencher to indicate he would support the bill, while One Nation, Derryn Hinch, Cory Bernardi and Fraser Anning said they were undecided, still negotiating or would not reveal their positions.

Former crossbench senator Jacqui Lambie, who was disqualified for being a British dual citizen, has not been paired as the High Court determines who is eligible to replace her.

The Australian was told Ms Lambie could not be paired because there was no other representative of her party in the Senate to indicate the Jacqui Lambie Network’s position on relevant bills.

With just 75 senators and 10 Senate crossbenchers, the government needs eight of their votes to legislate the reforms.

Mr Tehan said the government would continue to negotiate with the crossbench to secure passage of the bill without significant amendment.

“Negotiations are ongoing and I appreciate the constructive way that all the crossbenchers are ­entering into discussions over the reforms,” Mr Tehan said.

The bill has been stuck in the Senate since September but a number of amendments have ­already been agreed to.

Senator Leyonhjelm said he ­expected the reforms would pass the Senate if there were no big changes.