Ben Squires
Money & Banking

Government announces crackdown on welfare “cheats”

The government is set to come down hard on Centrelink welfare “cheats”, announcing a crackdown on people gaming the system ahead of next week’s Federal Budget.

Figures reported in The Australian found 7,006 jobseekers missed appointments last year, only to reengage at the end of the fortnight to retain their $570 Newstart payment.

An additional 16,492 jobseekers were flagged for “unusual” behaviour and 3,415 more reengaged with the department every 56 days to avoid having payments cut off.

It should be noted however that the group identified as those “gaming the system” only comprises about 3 per cent of the 759,000 people receiving the Newstart allowance.

Employment minister Michaela Cash told The Australian, “Australia’s welfare system is there to provide a safety net for those in need — not to fund a lifestyle choice. The Coalition continues to look at ways in which to strengthen the system so that community expectations are met and to ensure­ that those that can work, do work.”

This was reiterated by her colleague, Human Services Minister Alan Tudge, who warned of “immediate and proportionate” punishment for repeat offenders.

Mr Tudge said, “It is in their interests as much as the community’s for them to get back to work as quickly as possible, because the longer a ­person is on welfare, the steeper the road back to employment.

“We need a system that recognises that some have serious issues in their life and need assistance. But for those who are gaming the system, we need to introduce stronger, more immediate ­consequences.”

What’s your take? Do you think the government is being a little too harsh, or are they justified in this move?

 

Tags:
Finance, Money & Banking, Centrelink, Federal Budget