The Coalition will launch a new round of its highly criticised “robodebt” electronic debt recovery scheme and increase the waiting time for newly arrived migrants to access welfare in an attempt to make $500m in budget savings.

The robodebt measure, announced in Tuesday’s budget, will target people already paying back debts but who have been identified as having the “capacity to pay more”, as well as focusing on former welfare recipients who have “high-value” debts. The measure is forecast to save $300m.

A further $202m is expected to be saved over five years by increasing the waiting period for migrants to access to some welfare benefits from three years to four years from July 2018. The measure is referred to as “encouraging self-sufficiency for newly arrived migrants”.

Welfare recipients also face having money taken directly out of their payments if they have unpaid court fines issued by state or territory governments. Anyone with outstanding state or territory arrest warrants would have payments cancelled.

Robodebt has been widely criticised for sending out incorrect debt notices and putting the onus on often-vulnerable welfare recipients to track down payslips from as far back as seven years to prove their income was correctly declared.

It also required anyone contesting a debt notice to do so through an online system, with some complaining they were unable to speak to anyone in person or on the phone about the debt.

Quick Guide 2018 budget at a glance Show • Tax cuts for middle low and middle income earners with most saving between $200 and $530 a year on their tax bill through a tax offset • Ambition for a flat tax rate by 2024 of 32.5% for everyone earning between $41,000 and $200,000 • $4.5bn earmarked for roads, but major public transport projects will have to wait years for the lion's share of funding announced in the budget. $24.5 billion has been directed to new commitments, but only $4bn of that is being spent in the next four years • The controversial robodebt electronic debt recovery is to continue • Newly arrived migrants will have to wait another year to receive welfare assistance, while refugees will see their wait for Newstart doubled to 26 weeks • Superannuation funds to be banned from charging exit fees and fees for accounts under $3,000 will be limited to 3% • ABC to have its funding cut by $83.7 million over three years. Meanwhile a Captain Cook statue in Scott Morrison’s electorate is to be built at a cost of $25m • ‘Black’ economy is under the spotlight with government planning to claw back revenue it is losing to illegal tobacco. Home Affairs estimates it can earn $3.6 billion from a crackdown • Pensioners will be able to earn an additional $25 a week without reducing their pension. The pension loan scheme is also being expanded, which allows pensioners to use their homes as equity to boost their retirement incomes • $1.6bn is being spent to support an additional 14,000 additional high-level home care packages. A further $82.5m is being spent on mental health services for older Australians, including a $20m “loneliness” package, to help people “remain connected to their communities”. • New measures to help crack down on multinationals avoiding tax commitments. The government is also moving to add to previously announced measures to make sure income earned in Australia, can be taxed by Australia.

The government has responded to complaints of excessive waiting times for calls to Centrelink with a one-off $50m boost. Centrelink’s ageing IT systems will also be overhauled with $316m over four years for more efficient automated claim, assessment and payment processes.

Some $1.1bn will be redirected from various departments to reform another highly criticised welfare policy.

The remote work-for-the-dole scheme, the community development program, has been accused of failures including overwhelmingly discriminating against Indigenous people with its stricter requirements and harsher penalties.

The $1.1bn will be redirected from the departments of prime minister and cabinet, social services and human services.

Under the reformed CDP, beginning 1 February 2019, participants will have their required hours of work reduced to 20 a week, and will be subject to the same compliance measures as any other jobseekers “regardless of where they live, or which government program they participate in”, said the Indigenous affairs minister, Nigel Scullion.

There will be 6,000 wage subsidy positions available to eligible employers of CDP participants, for up to $21,034 over two years.

The government will also extend its two cashless debit card trial for welfare recipients in Ceduna, South Australia, and East Kimberley, Western Australia, and will conduct another independent evaluation.