Young jobseekers taking part in the federal government's controversial youth internship program won't be slugged on their dole payments after legislation cleared the Senate.
Backing legislation for the PaTH program passed the upper house on Wednesday, a year after being announced in the 2016/17 budget.
The program seeks to encourage jobseekers under 25 to do four-week to 12-week internships by paying them $200 a fortnight on top of income support payments and giving the employer a $1000 upfront payment.
Despite staunch opposition from Labor and the Greens, the program began on April 1.
But without the backing legislation, young jobseekers taking part could have lost up to $42 of the $200 fortnightly dole top-up in tax.
The legislation also ensures anyone who drops out of the program for whatever reason can have their social security payments restored without having to make a new claim.
An amendment by the Nick Xenophon Team will ensure the program is independently reviewed in two years.
Labor and the Greens insist the program will allow young people to be "screwed" by employers with no safeguards, paying them $7.60 an hour.
"$7.60 an hour, are you kidding me?" Greens senator Sarah Hanson-Young said.
"I'd like to know if the minister is prepared to work for $7.60 an hour."
Labor frontbencher Doug Cameron said companies were already seeking to use the program to rip young people off, with Subway advertising for interns to become "sandwich artists".
"You are trying to tell us you can look after internees being ripped off by people like Subway - it's a disgrace."
One Nation leader Pauline Hanson said claims of slave labour were a "load of rubbish" insisting the program was a helping hand for young Australians crying out for help.
The government says the program will give young people experience and skills required to get a job.
Employment Minister Michaelia Cash said 59 young people had volunteered for the program so far with one person already having been offered a job.
