More than $100 million will be spent to help those at risk of long-term welfare dependency - including children whose parents are in jail or who have mental health issues.
It includes $5.1 million on an early intervention program to improve the parenting skills of at-risk parents with vulnerable kids under a two-part, six-year trial.
As the children grow up and move out of home, the government will support them into study, housing and jobs.
It's part of a long-term plan to reduce the government's ballooning welfare bill.
Meanwhile, welfare recipients in public housing will have their rent and other tenancy costs automatically deducted from their payments.
The government says it will prevent people from facing eviction and accumulating rental debt.
There's also extra money to expand the trial of the controversial cashless welfare card to a third site.
The card, which is in operation in Ceduna in South Australia and Kununurra in Western Australia, quarantines at least 80 per cent of a person's welfare payments which cannot be used to buy booze or for gambling.
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