Most participants in the Federal Government's remote work-for-the-dole program were fined last financial year for breaching the conditions of the scheme, new figures reveal.

Key points: Out of 35,000 participants, 20,000 were fined last financial year, 90 per cent of them Indigenous

Out of 35,000 participants, 20,000 were fined last financial year, 90 per cent of them Indigenous Labor says the system is broken and Indigenous people have no access to a better way of life

Labor says the system is broken and Indigenous people have no access to a better way of life Indigenous Affairs Minister Nigel Scullion says participants are finding jobs

The Community Development Programme covers about 35,000 people — the vast majority of whom are Aboriginal.

Under the scheme, people must work 25 hours a week to receive their unemployment benefits.

But figures released to a Senate committee showed:

More than 20,000 participants were fined last financial year

More than 20,000 participants were fined last financial year About 90 per cent of those found to have breached the program were Indigenous

About 90 per cent of those found to have breached the program were Indigenous People were fined on 146,654 separate occasions

People were fined on 146,654 separate occasions The Northern Territory recorded more penalties than every other jurisdiction combined

Northern Territory Labor Senator Malarndirri McCarthy said the figures prove the program is broken.

"It's clearly not working, it's a system that's in a mess and there needs to be an urgent change to the way certainly Indigenous people are being impacted on the ground in terms of this program," Senator McCarthy said.

"So many families in the Northern Territory are going hungry, we have no access to a better way of life, they are being impacted in terms of being able to care for their children."

An Australian National University report said the scheme was having a devastating impact.

Scheme supported 'by the communities themselves'

Indigenous Affairs Minister Nigel Scullion makes no apologies for people being breached for not meeting their obligations, a spokesman for the minister told the ABC.

"It is important to recognise that the CDP is focused on providing jobseekers with an incentive to turn up to their activities — to give them a sense of purpose and to develop skills that can help them gain jobs," the spokesman said.

"The CDP is co-designed with communities to provide support for disengaged community members to get work experience and transition into jobs.

"The programme has placed participants into more than 11,000 jobs since July 2015 — a key indicator it is working."

Waiver provisions are also in place to ensure that financial penalties do not cause undue financial hardship, the spokesman said, adding that more than 90 per cent of eight-week non-payment penalties are waived.

Earlier this week, Senator Scullion told the ABC that: "I absolutely reject some of the allegations that have been made in the report."

He said the scheme was "supported by not only the cultural authority in these communities but by the communities themselves".

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