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The major $2.1 billion crackdown coming to Centrelink

<p>A major Centrelink overhaul would be able to save the government $2.1 billion by adapting the way welfare recipients report their employment income.</p> <p>Over 1.2 million people receiving welfare payments could soon be made to specifically report the actual fortnightly income to Centrelink, rather than giving a calculation based on their wage and hours worked.</p> <p>Minister for Families and Social Services Anne Ruston says she hoped the proposal will make the process simpler. </p> <p>“We want to make sure that Australians who need financial support are able to get the support that they are eligible for – no less and no more,'” Minister Ruston said.</p> <p>“The current system of calculating earnings can be confusing and lead to misreporting especially when accounting for overtime or penalty rates.</p> <p>“These changes will make accurate reporting much easier for people getting a social security payment.”</p> <p>Under the system currently in place, welfare recipients are required to report their or their partner’s earnings based on the number of shifts they have worked and their hourly rate.</p> <p>The coalition hopes that by simplifying the reporting system, it will become more accurate and prevent those receiving payments being left owing money or having to repay the government for being overpaid.</p> <p>The new change would additionally allow employment and income data to be pre-filled online, as it is also occurs with online tax returns.</p> <p>Draft legislation detailing the changes will be released for consultation this week.</p> <p>The coalition has hopes to bring the proposed laws to parliament when it resumes next week.</p> <p>The new system, which has already been dubbed “<a rel="noopener noreferrer" href="https://twitter.com/D_Melissa2/status/1221911564933926912?s=20" target="_blank">robodebt 2 on steroids</a>”, comes months after robodebt was deemed unlawful after a legal challenge in the Federal Court.</p> <p>The government has wound back on the original scheme, which is also facing a potential class action lawsuit.    </p>

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Calls for an increase to the dole

<p><span>ACT chief minister Andrew Barr is calling for the federal government to increase the dole from $273 a week, arguing that is creates a cycle of disadvantage.</span></p> <p><span>Mr Barr said a review of the current dole rate was a “glaring omission” from last month’s federal budget.</span></p> <p><span>“At just $273 a week — some $400 less than the national minimum wage — the current rate of Newstart is too low to help people get back on their feet when they end up out of work,” the chief minister told the Legislative Assembly.</span></p> <p><span>“Instead, it simply traps them in disadvantage.”</span></p> <p><span>Mr Barr’s plea follows other politicians criticising the Newstart oversight in the federal budget. </span></p> <p><span>Independent Senator Derryn Hinch said he was disappointed there was no review of Newstart payments.</span></p> <p><span>"I think that will be the big issue this year," he said. "It will get a lot of crossbench and Labor and Greens' support."</span></p> <p><span>He said the majority of welfare recipients were not "20-year-old pimply kids who just don't want to work".</span></p> <p><span>"These are 45, 55-year-old men and women who have been made redundant," he said. "It's just wrong."</span></p> <p><span>Last month, former prime minister John Howard said there needs to be a debate about increasing the level of payment from $40 a day.</span></p> <p><span>"I actually think there is an argument about that, I do," he said at the PricewaterhouseCoopers post-budget breakfast in Melbourne.</span></p> <p><span>"I was in favour of freezing that when it happened, but I think the freeze has probably gone on too long."</span></p> <p><span>In March, the Australian Bureau of Statistics revealed that the unemployment rate was 5.5 per cent, with 730,200 Aussies without a job. </span></p> <p><span>What do you think about the federal government increasing the dole from $273 a week? Tell us in the comments below. </span></p>

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