news, latest-news

The Coalition will dump more than half a billion dollars in welfare reforms but expects to pocket savings by targeting a new debt recovery method at families. A drain on the budget of $581 million appeared on Monday in the mid-year economic update, which showed the government would pull back on parts of its controversial push to create savings with an overhaul of the welfare system. The reversals come after the government projected in 2015 it would save $1.7 billion with welfare reforms leading to its maligned online compliance intervention "robo-debt" program, and make more savings in an expansion of its debt recovery efforts projected in last year's mid-year update. After the Coalition canned some of its planned changes on Monday, the Department of Social Services will bear the brunt of the resulting budget hit costing the agency $661 million over four years, offset for the government by savings in other agencies. The Coalition has offloaded from the budget a proposal to change how it assesses carer payments and allowances, and a proposal to expand tax garnishee arrangements to recoup welfare debts from people already on repayment plans. It will turn instead to other, new reforms which it expects will make $176.6 million by using family tax benefit lump sum or instalment arrears payments to claw back social security, student welfare or paid parental leave debts from recipients beginning in December next year. The new measure is one of the latest in the Coalition's welfare overhaul, which hit trouble during a storm of controversy over its "robo-debt" system matching information welfare recipients gave to Centrelink with Australian Taxation Office data to recover debt overpayments. Social Services Minister Christian Porter said the government removed the changes to assessments for carers payments and allowances after deciding it needed more work with stakeholders including Carers Australia, which had been working with the government on the policy. Advocates for social services attacked the newest debt recovery measure aimed at family tax benefits, saying it could push some families deeper into financial hardship as it sped up debt repayments. Australian Council of Social Service director of policy and advocacy Edwina MacDonald said it most feared that families already living below the poverty line could lose access to repayment plans, which were critical for people on low incomes with a Centrelink debt. Do you know more? Send confidential tips to ps@canberratimes.com.au "We know that families depend on end-of-year supplements to pay for school shoes, uniforms and the car rego. All families should have access to fair and affordable repayment plans if they have a social security debt so as to mitigate the risk of severe financial hardship," she said. Ms MacDonald said the government, which appeared to keep its online compliance intervention program, should have ended the "robo-debt" system a year ago. The government should have adopted Senate inquiry's recommendations and halted the program to stop it from doing further damage to people, she said. Follow Doug Dingwall on Twitter.

https://nnimgt-a.akamaihd.net/transform/v1/crop/frm/silverstone-ct-migration/1186337c-782f-4543-9e16-6433116da12d/r0_126_2000_1256_w1200_h678_fmax.jpg