The Federal Government will follow a precedent from New Zealand in a bid to break what it deems the cycle of welfare dependency in Australia.
The Social Services Minister has announced a package of almost $100 million to allow groups to apply for and use the funds to develop programs for getting people off welfare.
A new report by "Pricewaterhouse Coopers" has found young carers, young parents and some students are most at risk of getting caught in a lifetime of welfare.
Social Services Minister Christian Porter has announced a program called the Australian Priority Investment Approach.
He says it is all about intervening early and getting at-risk groups into training or jobs.
Based on the New Zealand model, the states and other involved groups would bid for funds from a pool of $96 million to devise programs to break the cycle of welfare dependency.
Those programs will be monitored, evaluated and discontinued if they fail.
New Zealand has reduced the country's welfare bill by billions of dollars in using a similar model.
New Zealand's State Services Minister Paula Bennett has told the ABC that, in New Zealand, unless obligations like health checks and school attendance for children are met, benefits are cut by up to half.
