The federal government is spending more money penalising job seekers who fail to look for work than it would save from not paying them.
From July 1 2016, welfare recipients who miss appointments and activities such as work for the dole will have their payments suspended, saving the government $6.9 million over three years.
But the stronger compliance measures will cost $24.9 million over four years according to budget papers, prompting criticism from the Australian Greens, who argue the wasted money should be reinvested back into programs for those who most need support.
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