Under a 2018 budget measure to be enacted, new immigrants will not be entitled to a job-seeking allowance, (Newstart) or other benefits, unless they have lived in Australia for more than four years.
If government's recent austerity measures were passed in Parliament, tens of thousands of immigrant families would have to live in Australia for four years before receiving benefits from the Centrelink, the Senate Assessment Committee said at a hearing.
As early as last December, government announced that, starting in July, new immigrants arriving in Australia would have to wait three years before receiving some benefits from Centrelink, a move that would save about 1.3 billion yuan in funds for government over the next four years. The current waiting period is only two years.
But in the 2018 budget, government extended the waiting time to four years, saving another 200 million yuan.
The reform will limit some of the key Centrelink benefits, including job search benefits, paid maternity leave, caregiver benefits and family tax benefits.
At Thursday's hearing, senators asked human services officials how many people would be affected.
They responded that about 66000 immigrant families would be forced to wait four years before receiving family tax benefits, while 47000 would be affected by a freeze in job-seeking allowances and other benefits.
Refugees fleeing persecution and getting humanitarian visas will still be exempted, without any waiting time, and so will their families.
The labor department said new arrivals suffered sudden economic losses as a result of "significant changes in circumstances," including immunity for victims of domestic violence.
Department official Shane. Bennett (Shane Bennett) downplayed concerns that the proposal would curb immigration.
"evidence from the OECD (OECD) suggests that access to social services is not necessarily a factor in consideration," Bennett said at a Senate hearing on Thursday.
"A 2016 Productivity Council report showed that non-humanitarian permanent migration effectively reduced income support for ordinary people."
Immigrants and community groups are strongly opposed to extending welfare waiting times, fearing it could force some new immigrants into poverty.
Exemptions will continue to apply to vulnerable groups and humanitarian entrants, and difficult-side provisions will continue to exist.
In another budget measure, new arrivals will have to wait six months before they can enjoy Centrelink's job-hunting program.
The reform doubled the existing three-month waiting time and is expected to save 68 million yuan over the next four years.
The budget document said the measure would improve the order of services provided to refugees, who during the first 26 weeks of their arrival in Australia focused on helping them focus on accommodation and language skills.