Alan Tudge, speaking at a $300 a head lunch, says welfare system has become a ‘destination, not a safety net’ for many

This article is more than 3 years old

This article is more than 3 years old

The human services minister has described welfare dependency as the most pressing problem facing Australia’s social security system, likening it to “poison” for the unemployed.

Alan Tudge outlined the Coalition’s vision for the welfare system in a speech to the committee for economic development of Australia on Friday, held at a $300 a head luncheon at the the Hilton Hotel in Sydney.

Tudge spoke mainly of tackling long-term dependency on Centrelink benefits, improving jobseeker compliance, and reducing government expenditure on welfare.

The fundamental principle guiding the Coalition’s policies was “the best form of welfare is a job, and everything should be geared towards supporting capable people into work wherever possible”.

Tudge argued the welfare system had become a “destination, not a safety net” for many in Australia.



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“The most pressing problem is that our welfare system is failing too many of the individuals it was set up to serve,” he said.

“Too many people are led into lives of dependence and passivity, with insufficient incentive to make the most of their innate potential.

“While welfare, for a short period, can be a blessing for a capable person temporarily out of work, long-term welfare dependence can become a poison. Over time, welfare dependence sucks the life out of people and can diminish their capability.”

Tudge outlined the reforms announced in this month’s budget, including a demerit points-style compliance regime for jobseekers who fail to meet their mutual obligation requirements, the simplification of Centrelink payment categories, a further expansion of the cashless welfare card, and drug tests for welfare recipients.

The political activist group GetUp! paid for welfare recipients and victims of the government’s automated debt recovery system to attend the event.

GetUp!’s national director, Paul Oosting, said each ticket cost as much as a single Newstart recipient received each week.

Oosting said GetUp! had wanted to ensure those affected by reforms to the welfare system were visible as Tudge outlined the reforms.

“We want to make sure that everyday Australians, that people who rely on our social safety net, have a seat at the table,” he said before the speech. “That’s why we’re here.

“Minister Tudge needs to start listening to these people to understand what it’s like to live on our social safety net and locked out of the jobs market. So we’re here to make sure he’s confronted by those people.”



Tudge spoke of the dignity of work, and said dependency was wrecking many Indigenous communities, citing the views of Noel Pearson, Warren Mundine and Galarrwuy Yunupingu.

“Our view is that the best form of welfare is a job, and everything should be geared towards supporting capable people into work wherever possible,” he said. “This is the fundamental principle that our policies are built upon.”

He also defended the government’s plans to trial drug testing of welfare recipients, saying a quarter of all welfare recipients took drugs last year.

The drug testing – condemned by drug support workers and welfare advocates – will see those who test positive placed on a cashless welfare system. If they fail a second test within 25 days, they will be referred to drug treatment.

“The facts are that if you use drugs, you diminish your chances of working and increase your chances of dependency,” Tudge said.

“Consider which jobs you would likely be ineligible for: construction jobs, transport jobs, defence jobs, emergency services, and mining. In all of those industries, drug testing is common.”