Budget’s war on drugs as Treasurer Scott Morrison warns welfare recipients: ‘It’s a two-way street’ – NEWS.com.au

Budget 2017: the big news in welfare

TREASURER Scott Morrison has declared war on drug addicts, dole bludgers and cheats.

In a Budget that promises to claw back more than $632 million from the welfare system, Mr Morrison has unveiled tough new rules that will penalise Australians on Centrelink payments who battle with substance abuse.

We want to support job seekers affected by drug and alcohol abuse, but to protect taxpayers, it has to be a two-way street, Mr Morrison said in his speech.

We will no longer accept, as an excuse from repeat offenders, that the reason they could not meet their mutual obligation requirements was because they were drunk or drug affected.

The crackdown will include penalties for those who fail to turn up to appointments or work-for-the-dole placements due to intoxication, with payments to be reduced or cancelled.

Under the reforms, drug addicts and alcoholics will be ineligible for disability pensions for medical conditions caused solely by their own substance abuse.

The Government will also launch a drug testing trial among 5000 new welfare recipients. Those who test positive to illicit drugs will have their welfare payments placed onto a cashless debit card, which can only be used to pay for legitimate living expenses.

THREE STRIKES RULE

Any unemployed person receiving a benefit who does not show up for an appointment without a reasonable excuse will have their payment suspended until they re-engage with their job services provider, with demerit points to be accrued for each incident.

If four demerit points are accrued within six months, the job seeker will be placed on a three strikes and youre out intensive compliance program.

Then, if they breach their obligations again, theyll lose 50 per cent of their fortnightly payment for the first strike, 100 per cent for their second, and have their payment suspended for four weeks for their third strike.

Centrelinks new compliance framework will further penalise claimants who miss appointments and fail to update their information by removing backdating provisions.

We will continue to stop people trying to take an easy ride on our welfare system to protect it for those who need it most, Mr Morrison said.

The best way to get your welfare budget under control is to get Australians off welfare and into work.

Mr Morrison said drug-affected welfare recipients may be subjected to further tests and possible referral for treatment, promising that the Centrelink reforms would simplify the compliance system and provide vulnerable people with support by ensuring appropriate, individualised assessments which would take into account individual circumstances to ensure that people with genuine issues are not unfairly penalised.

Existing cashless card trials in Ceduna, South Australia and the East Kimberley, Western Australia will be extended until June 2018, with two extra locations to be added in September.

SINGLE PARENTS AND IMMIGRANTS

Centrelink will tighten regulation of Australians collecting single parent payments, cracking down on those who fraudulently collect multiple payments.

This could mean single-parent households will be subjected to closer scrutiny to verify their relationship status.

New migrants will be subjected to stricter residency rules before they can access and aged pension or disability pension, saving the budget $119 million over five years.

From July 2018, claimants must be able to prove 15 years of continuous Australian residence before they will be eligible, unless they have 10 years residence with five years of those years spent working or otherwise supporting themselves without government assistance.

On the plus side, dealing with Centrelink may become simpler for some, with the budget including $5.5 million worth of measures to cut red tape and improve information sharing between departments.

The agencys call centre will get an extra 250 workers in a pilot aimed at slashing call waiting times.

Claimants will now have to provide their tax file numbers when they first lodge claims, enabling the department to cross-reference information with the Australian Taxation Office.

dana.mccauley@news.com.au

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Budget's war on drugs as Treasurer Scott Morrison warns welfare recipients: 'It's a two-way street' - NEWS.com.au