The first stage of a major federal government overhaul of welfare payments has suggested that only people with a permanent disability receive the Disability Support Pension and has flagged greater government control over how people spend their benefits.

The report, which was released on Sunday morning, has also suggested that the system will be cut down from 75 payments and supplements to just four payment categories, covering a tiered working age payment, family payment, disability payment and the aged pension.

Earlier this year, Mr Andrews tasked former Mission Australia head Patrick McClure with reviewing Australia’s welfare system, which paid out more than $110 billion in 2012-13.

The discussion paper does not include any recommendations, with the McClure team planning to conduct six weeks of public consultations and round tables in capital cities before reporting back to the government later around October this year.