The Centrelink revolution: Welfare recipients will automatically reveal their income online in move that will save the taxpayer $2.1BILLION
- Welfare recipients will soon automatically report their employment incomes
- Federal budget’s single biggest savings measure which will save billions
- Those who get Centrelink payments and also work automatically input income
- Measure will ‘greatly reduce’ the likelihood of welfare recipients being overpaid
Welfare recipients will soon automatically report their employment incomes, in a measure expected to save billions of dollars.
In the federal budget’s single biggest savings measure, the government expects to bank $2.1 billion over five years by ‘simplifying and automating’ the social security reporting system.
From July 1, people who receive Centrelink payments and are also employed will automatically input their fortnightly income, rather than calculating and reporting their earnings.
Government officials expect the measure will ‘greatly reduce’ the likelihood of welfare recipients being overpaid, and subsequently being chased for the money.
Treasurer Josh Frydenberg (pictured) delivered his first federal budget on Tuesday night
Eligibility measures and maximum payment rates will not be affected.
Another major savings measure is expected to reap $78 million over four years by ‘better targeting’ employment support for refugees.
Newly-arrived refugees will only be required to enter into employment services once they have been receiving income support for 12 months, rather than the current requirement of six months.
This measure is supposed to allow refugees to focus on settlement and language services during their first year in Australia.
The federal government hopes expect the budget’s biggest savings measure will ‘greatly reduce’ the likelihood of Centrelink welfare recipients being overpaid (stock image)
Cashless welfare card trials are also being extended for another year to June 2021, at a cost of almost $129 million.
The budget locks in one-off energy assistance payments for pension and welfare recipients of $75 for singles and $125 for couples, to help pay for power bills.
However, economists and welfare advocates will be disappointed to learn the fiscal document is silent on raising the rate of Newstart.
Critics are furious the ‘unnecessarily cruel’ unemployment allowance has not lifted in real terms for more than 25 years.
Liberal senator Arthur Sinodinos is the latest person to break with government ranks to join their calls for an increase.
Newstart recipients are given $538.80 per fortnight, while aged pensioners take home $834.40.
The new measures were unveiled in the 2019-10 federal budget (pictured)