The Abbott government is set to make young people wait until they are 25 to receive the dole but will avoid the Commission of Audit’s most draconian recommendation to force unemployed people off benefits.

Young Australians are currently allowed to receive the Newstart unemployment allowance when they turn 22 but they are expected to be forced to wait until they turn 25 before receiving the payment in changes expected in the budget, when Prime Minister Tony Abbott will tell young Australians they must “learn or earn”.

The Abbott government is set to make young people wait until they are 25. Credit:Alex Ellinghausen

Those who do not have a “track record” of working will find it harder to get on the dole.

In a significant change, the government is likely to force unemployed 22-year-olds to stay on the lower paying Youth Allowance. Another expected policy will be forcing school leavers to wait six months after graduating before applying for Youth Allowance.