Official figures show Australia's unemployment rate fell to 6.1 per cent in August.
Overhaul of welfare system ... Federal government wants to get more people in work Source: News Limited
OLDER unemployed Australians could be forced to wait one month before accessing the dole, under an overhaul of the country's welfare system.
Social Services Minister Kevin Andrews has revealed the government's review panel will look at extending tough new waiting periods to jobseekers over 30.
The Abbott government has already proposed making young unemployed Aussies wait up to six months before accessing Newstart or Youth Allowance.
MORE: Abbott Government ready to negotiate on dole reforms
MORE: Welfare expert Patrick McClure wants dole spending restricted
But that controversial budget measure, designed to save $1.2 billion, is still struggling to win support from the Senate crossbench.
In an exclusive interview with News Corp Australia, Mr Andrews said an alternative would be to follow the approach of New Zealand, where all dole applicants — regardless of their age — wait a month before they can receive income support.
Make all dole applicants wait a month ... Kevin Andrews, Minister for Social Services. Picture: Darren England Source: News Corp Australia
He said his independent reference group, lead by Patrick McClure, was considering this approach in its review of Australia's welfare system.
"In New Zealand they take a different approach, and that is, they say everyone who applies for their equivalent of Newstart has a month's waiting period," he said.
"And in New Zealand about 40 per cent of people never come back," Mr Andrews said.
"That is across the board there," he said. "McClure is looking at that".
Currently there are almost 540,000 Australians aged 30 years and older who are on the Newstart allowance.
Major saving if month delay in payment ... Almost 540,000 aged 30 plus on Newstart allowance Source: Supplied
Mr Andrews also said the government was likely to respond to the final McClure report in phases, with the initial focus being to simplify the number of welfare payments and target working age jobseekers.
The draft report of the McClure review panel recommended streamlining the number of welfare payments to as few as four, but Mr Andrews told News Corp Australia that number could be too few.
"McClure said four, in your base payments I think you could have even one or two more, for example carers have been raised, whether or not that should remain a specific payment," he said.
"(Currently) when you add it up it is something like 75-77 different supplements and payments and allowances, now I am sure we can have a more simple system than that," he said.
"I think if we ended up with 20-25 when you have your base payments, supplements and allowances, that would still be a much more simple and efficient system than we have now."
The government will have to wait for the final report of the McClure review panel, and consider that alongside mining manganate Andrew Forrest's review of the welfare system.
Tasked with reviewing welfare payments ... Patrick McClure. Picture: Dave Hunt Source: Supplied
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