The Abbott government is reportedly considering a review of all welfare payments, including income-support payments for single parents.
The government believes the system is ad hoc and needs be simplified and reformed to encourage welfare recipients into work, The Australian reports.
Social Services Minister Kevin Andrews is reportedly critical of changes made by the former Labor government to the Newstart allowance for single parents, and prefers a more generous scheme.
This could include changing the income test for parents on the unemployment payment.
In January, tens of thousands of single parents were shifted off parenting payments and onto the unemployment benefit Newstart leaving many between $60 and $100 a week worse off.
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The decision was to save taxpayers $728 million over four years.
