Migrants who arrive in Australia from July next year will have to wait three years before they can access certain welfare payments, extending the current two-year waiting period.
The government estimates the measure will save $1.2 billion over the next four years.
The extended waiting time will apply to paid parental leave, the Carers Allowance and the Family Tax Benefit.
Those bringing relatives over to Australia on a family visa will also need to guarantee their financial independence for three years.
There will be some “exemptions” for “vulnerable groups”, according to MYEFO paperwork, as well as for some New Zealand citizens with children in their care.
The migrant welfare reforms and the cuts to university funding are the two biggest saving measures revealed in the MYEFO, which was released by the Turnbull Government on Monday.
The budget update shows Australia is still on track to be out of debt and into a surplus by the financial year 2020-21, when the surplus is forecast to reach just above $7 billion.
Govt moves again on uni cuts
The government will also try a new set of measures to save money on university funding after the Senate defeated a package of cuts announced at the Budget back in May.
The combined measures will save the government $2.1 billion over the forward estimates - but some of those dollars are contingent on the government passing new legislation.
If the Turnbull Government can pass the legislation, there will be a new lifetime cap on the total amount of money the government will loan to any one student for their tuition.
HECS loans will be capped at $104,440 for most students, and a little higher at $150,000 for those studying dentistry, medicine or veterinary sciences.
The government will also try to pass reforms that force students to start repaying their loans once they start earning more than $45,000 per annum, after a previous attempt to lower the threshold further was voted down in the Senate.
One further university savings measure can be done without new legislation. Uni grant funding from the Commonwealth will be frozen at 2017 levels for the course of 2018.
