Clive Palmer has given the kiss of death to the Abbott government's apparent compromise on tough new dole rules for young unemployed people.
To try to win crossbench support for its changes, the government might accept reducing from six months to one its initial waiting period plan for Newstart payments.
But that's not good enough for the Palmer United Party.
"If we support those things, we have got to say are we in favour of increased youth suicide or are we in favour of increased crime," Mr Palmer told reporters in Canberra on Tuesday.
Nor does the government have the backing of another key crossbencher.
"I wouldn't support allowing a genuine jobseeker to have to wait for (even) one day," Family First senator Bob Day said.
The government needs six crossbench votes to have its changes clear parliament in time for their planned rollout on January 1.
Social Services Minister Kevin Andrews said he was prepared to negotiate with anyone who understood the taxpayer cannot subsidise people who didn't want to work or train.
"This is not an earn-or-starve provision, this is an earn-or-learn provision," he told AAP in a statement.
The welfare sector hopes Mr Palmer will stay true to his word in what it says is a "high stakes" game on young peoples' lives.
The Australian Council of Social Services cautioned the government against copying New Zealand, which imposes a one-month wait for welfare.
"The message we're hearing (from there) is that it's ugly," chief executive Cassandra Goldie told reporters in Canberra.
The Australian Greens say even a one-month wait is a recipe for homelessness.
