THE Federal Government reportedly appears set to make young people wait until they are 25 to receive the dole.
But Fairfax Media reports it will avoid the Commission of Audit's most draconian recommendation of forcing unemployed young people to relocate.
Young Australians are allowed to receive the Newstart unemployment allowance when they turn 22 but they are expected to be forced to wait until they turn 25 before receiving the payment in changes expected in the Budget.
Those who do not have a "track record" of working will find it harder to get on the dole.
In a significant change, the Government is likely to force unemployed 22-year-olds to stay on the lower-paying Youth Allowance.
Another expected policy will be forcing school leavers to wait six months after graduating before being able to apply for Youth Allowance.
The Abbott Government would save millions of dollars every year by tightening the unemployment benefits eligibility.
Single adults without children currently receive as much as $510 a fortnight on Newstart, but, under Youth Allowance, the maximum rate for a single person living away from home is $414.