There is little support from the states and mental health groups for a budget-saving measure to strip welfare from the criminally insane, federal parliament has been told.
The government wants to cut benefits from people in psychiatric confinement who have been charged with serious offences, including murder or rape.
While it will affect only about 350 individuals, there are concerns for their welfare because they have not been convicted or are unfit to stand trial, for example, because they cannot judge right from wrong.
The little-known measure, legislation for which passed the lower house on Thursday, will save just under $30 million.
It circumvents a recent court decision that found those in psychiatric confinement should get social security payments.
Labor says there's nothing to suggest the move would help rehabilitate people who suffer from serious mental health issues, such as schizophrenia or bipolar disorder.
Not even the social services department could justify the bill.
"It's another attempt to pass costs on to the states, and the most vulnerable," opposition disabilities spokeswoman Jenny Macklin said.
Ms Macklin said the government did not properly consult patients, carers or mental health groups, nor did it not wait until a Senate inquiry into the measure was finalised.
There was little support for the laws in submissions to the inquiry, with both the Victorian and Queensland governments voicing their opposition.
The government argues welfare is not needed because adequate care is provided in facilities, and those detained are the responsibility of the states and territories.
"This legislation is addressing those who have betrayed the trust of the community and committed a serious offence," Liberal MP Karen McNamara said.
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