The Australian Council of Social Service attempts to head off NXT support, saying changes will reduce payments for up to 80,000 people

This article is more than 2 years old

This article is more than 2 years old

The Australian Council of Social Service is mounting a last-ditch lobbying campaign to convince Senate crossbenchers to oppose the Coalition’s welfare overhaul, warning the changes will reduce payments for up to 80,000 people.

Last week, the Australian reported the Nick Xenophon Team senators were close to offering a lifeline to the Coalition on its welfare bill.

The legislation introduces tougher penalties for jobseekers who fail to comply with their obligations, and removes protections for those who find themselves unable to apply for social security on time.

The future of the legislation looked uncertain late last year, due to widespread opposition to the controversial plan to drug-test welfare recipients.

Labor says Nick Xenophon Team's welfare deal targets Australia's 'poorest people' Read more

The drug-testing measure is now likely to be removed from the bill, and the NXT say they have secured concessions from the Coalition, including $40m in extra funding for drug and alcohol rehabilitation services.

But Acoss is still attempting to prevent NXT support, at least for what it deems the worst parts of the bill. The president of Acoss, Tony Reidy, said that included the introduction of a demerits point-style compliance scheme for jobseekers on Newstart and other unemployment payments.

The scheme will introduce stronger penalties for jobseekers who fail to meet their mutual obligation requirements – such as missing interviews or appointments, or knocking back suitable employment.

Those who fail to comply with their obligations will face a graduated loss of income support, which culminates in the cancellation of welfare payments for four weeks for “the most noncompliant jobseekers”, the bill’s explanatory memorandum says.



The legislation aims to save $204.7m over five years, largely achieved through the reduction of payments, according to evidence given at a Senate estimates hearing last year.

Reidy said the compliance regime would contribute to “homelessness and destitution” by taking away payments for tens of thousands of welfare recipients.



“Up to 80,000 people are expected to lose between one and four weeks’ payment,” Reidy told Guardian Australia.



“This will likely increase homelessness and financial hardship. We urge the government to commit to an independent review of the jobseeker compliance framework before any reform is embarked upon.”



The changes will also remove “intent to claim” provisions, which protect people who are unable to lodge an application for income support due to extenuating circumstances.

Reidy said the changes could hurt people who were admitted to hospital, who were attempting to escape domestic violence or who were victims of a natural disaster, among other examples.



Under another measure in the bill, some categories of people who are unemployed would no longer be paid Newstart or a form of youth allowance from the day of their claim. Instead, they would be paid from the date of their first interview with a job service provider.

The measure is designed to encourage welfare recipients to engage with job service providers more quickly.

Reidy said that potentially imposed a “multiple-week wait for payment”, depending on how long it took the Department of Human Services to process the claim.

“This measure is unnecessarily cruel,” he said. “If this bill goes through, tens of thousands of people will be left worse off. The Senate crossbench must oppose this bill to guard against increasing poverty, homelessness and financial hardship for people already hurting in Australia.”

NXT have been contacted for comment.