Under A New Program, Youths on Welfare Can Lose Majority of Their Cash If They Test Positive to Drugs

While the program will still need to pass through the Senate in order to begin its trial, it's already facing a slew of criticism.

The Government is attempting to introduce a two-year trial program to those on Youth Allowance and Newstart that will see them subject to drug tests that look for traces of cannabis, ecstasy and methamphetamines.

If a recipient tests positive to one test, they will be placed on a compulsory income management plan which will see 80 per cent of their welfare payments moved onto a Basics Card, which can only be used to purchase essentials. The remaining 20 per cent will be available for cash purchases. If a second test is failed in the 24-month period, the recipient will then be referred to a medical professional and also charged for the test.

The proposed trial will be launched in Sydney's western suburbs of Canterbury-Bankstown and will affect 5,000 welfare recipients. The second site for trial will be in Logan, Brisbane.

Social Services Minister Christian Porter defended the proposal in a press conference.

"We want to help people in this situation," Mr Porter said. "Failure to do so simply leaves people at risk of a cycle of welfare dependency."

However, Logan's mayor, Luke Smith, called the program a "disgrace" after finding out that his city was the second proposed site through a call from the ABC asking for comments.

"I think to announce this from the top down is a disgrace and the lack of consultation is something I am quite amazed by," Mayor Smith told the ABC.

Meanwhile, a study was released revealing that Australians over the age of 50 had higher rates of illicit substance abuse and binge drinking than their under-50 counterparts.

Researchers from South London Maudsley NHS Foundation Trust and Adelaide's Flinders University told the ABC that they found the myth that the youths of Australia have a more severe drug problem than any other age group to be untrue.

"In Australia, the largest percentage increase in drug misuse between 2013 and 2016 was among people aged 60 and over, with this age group mainly misusing prescription drugs," the researchers told the ABC. "People over 50 have higher rates than younger age groups for both past year and lifetime illicit drug misuse, notably cannabis."

Yet, the Government's proposed drug-testing program is only targeted at youths.