Social Services Minister Christian Porter has unveiled a $96 million plan to outsource "new, novel and brave" ways to break the cycle of welfare dependence in Australia, conceding the Government does not have the answers.

Key points: Plan to outsource based on New Zealand model

Plan to outsource based on New Zealand model New approach to focus on early intervention, getting at-risk groups into training or jobs

New approach to focus on early intervention, getting at-risk groups into training or jobs Young carers, young parents and students most at risk of welfare dependency

Mr Porter has prised open government coffers in an attempt to entice stakeholders, academics, state and territory governments and non-government groups to pitch their ideas to help groups at risk of falling into the welfare trap, get jobs.

It is part of the Government's fresh pitch to break lifetime welfare dependency and address the potential trillion-dollar bill the Government faces into the future.

Mr Porter has labelled the consultation plan a 'BYO' style of engagement, based on a similar model in New Zealand.

He said the current system was akin to "assembling IKEA furniture in the dark" because policy is being created on instinct and a new style of consultation was necessary.

"Chosen plans will be subject to a simple basic metric of performance," Mr Porter said.

"Does the plan improve lives by increasing self-reliance over time?"

It is a move away from the failed Coalition attempts to institute a hardline welfare approach, including a six-month wait for school leavers to access the dole.

The measures were blocked in the Senate.

New Zealand the inspiration for BYO model

The decision to outsource potential solutions is based on a New Zealand model, designed to intervene and address at-risk groups quickly.

It was a key recommendation of former Mission Australia chief Patrick McClure's 2015 review into the welfare system.

"I think it's a very constructive approach because not only is it saying to a person 'look, we believe in you, we believe you've got potential to access education, training or jobs', but we're actually investing services in them to find that pathway," Mr McClure told the ABC.

Programs will be monitored and evaluated and if they do not work, discontinued.

Mr McClure said Australia had "learnt from the weaknesses in New Zealand" and would place a far greater emphasis on measuring the "positive life outcomes" for each individual.

The chief executive of the Australian Council of Social Service, Cassandra Goldie, said the new policy should not be used to justify welfare cuts.

She said the sector had been calling for a more flexible approach.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 8 minutes 51 seconds 8 m How NZ revolutionised its welfare system

Government facing trillion-dollar bill

At-risk groups currently on welfare Category: Young carers Number in Australia: 11,000 Average amount of time spent on welfare: 43 years Total cost to taxpayer: $5.2 billion Category: Young parents (under 18) Number in Australia: 4,370 Average amount of time spent on welfare: 45 years Total cost to taxpayer: $2.4 billion Category: Students* Number in Australia: 6,600 Average amount of time spent on welfare: 37 years Total cost to taxpayer: $2 billion *who move from student onto working age payments

Ahead of Tuesday's announcement, the Government commissioned a report by accounting firm PricewaterhouseCoopers (PwC) which crunched 15 years' worth of welfare data.

The modelling showed the national welfare bill could top $4.8 trillion over coming decades.

And identified young carers, young parents under 18, and some students as three groups most at risk of getting caught in the welfare trap.

PwC found, under the current system, a young carer would likely spend 43 years on welfare, at a cost to the taxpayer of half a million dollars each.

In total, this relatively small group of 11,000 Australians was estimated to cost $5.2 billion over their lifetimes.

The outlook for young single parents was similarly bleak; this group of 4,370 Australians is expected to spend 45 years on income support, at a total cost to the taxpayer of $2.4 billion.

Releasing the report, Mr Porter said the data showed that for some, the current approach to welfare was not working and something must be done.

"We already spend $160 billion on direct welfare payments and what this new data is telling us, is that for too many people inside the system the money flows but nothing changes and lives are not improving," he said.

"There is absolutely nothing morally superior or progressive about just applying more money to more of the same approaches where they don't seem to be working, without trying something different."