Budget 2016: Disability support crackdown to help fund National Disability Insurance Scheme

The Federal Government will again crack down on the Disability Support Pension and cut off carbon tax compensation for all new welfare recipients to help fund the $22-billion National Disability Insurance Scheme.

Key points:

No carbon tax compensation for new welfare recipients

30,000 people to have Disability Support Pension reassessed

Savings will help to foot bill for NDIS

The Government has found $2.1 billion in savings from the welfare budget which it will move into the new NDIS savings fund.

Nearly $1.4 billion will be saved by stopping all new recipients of Government welfare payments from receiving carbon tax compensation which, for a pensioner, was worth up to $14 a fortnight.

Federal Treasurer Scott Morrison said in his budget announcement, those who were receiving the compensation would continue to do so but it was "nonsensical" for the Government to extend that to new welfare recipients.

"What we will be doing, going forward, is anyone coming onto benefits into the future, well we're not going to have carbon tax compensation for a carbon tax that doesn't exist," he said.

The Government also expects to save $62 million by assessing 30,000 Disability Support Pension recipients' capacity to work.

Work for the Dole re-worked

In a surprise move, the Government has also remodelled its Work for the Dole scheme, spending $804 million on a new program to get young people into jobs.

The Youth Jobs Path program will offer unemployed people under the age of 25 intensive pre-employment training as well as four to 12-week internships, and will provide wage subsidies for employers who choose to hire them.

Jobseekers who take part will be eligible to receive $200 a week on top of the Newstart Allowance.

Mr Morrison suggested the existing Work for the Dole scheme was not working and said the new program would give people "real jobs and real experience".

"It's being funded completely by moving resources from areas that haven't been working as well, areas that won't, we believe, get the same results for people to get into real jobs like Work for the Dole," he said.

"I've listened to business people who said they want to give young people a go but they don't want to have to shoulder all of the risk and all the cost of giving them a go.

"We are de-risking that investment."

Source: ABC News

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