The Federal Government estimates it will save $2 billion over four years after it implements changes to the way Newstart recipients report their income.

Currently, recipients estimate their income for the upcoming fortnight and are paid accordingly, but many incorrectly predict how much money they will earn and have their payments suspended.

The new system will instead see people use their actual payslips to report income.

Australian Council of Social Service CEO Cassandra Goldie told Oliver Peterson it’s important cost-cutting isn’t the driving force behind the changes.

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