Thousands of people with outstanding welfare debts have begun paying back the money they owe after the Turnbull government said it would start charging them interest.
Human Services Minister Michael Keenan said around half of the 28,000 former Centrelink clients repaid their entire debt in one lump sum, including several individuals who owed more than $20,000 each.
The Department of Human Services announced in April that it was sending letters to about 170,000 former clients who collectively owe taxpayers a staggering $905 million.
Mr Keenan is pleased so many people have agreed to start meeting their obligations.
"But I strongly encourage those who have refused to engage with us to move swiftly in order to avoid seeing their debt grow even further," he said in a statement on Sunday.
"Given that these people are no longer receiving welfare benefits and are predominantly back in the workforce, the government believes they have the capacity to pay up."
Separately, Social Services Minister Dan Tehan says the government is aiming to improve the work readiness or education prospects of young parents to reduce welfare dependency.
He says 79 per cent of young parents aged 18 or under who are receiving a parenting payment are expected to be receiving income support payments in a decade's time.
The government is providing $4 million to the Brave Foundation to run an innovative trial to reduce such welfare dependency.
Up to 350 teenage mums and dads would be offered one-on-one support to help them navigate early parenthood and be better prepared to return to education or find a job, such as driving lessons or training.
"The Turnbull government is focused on helping people off welfare and into work," Mr Than said in a statement.
