Government social security and welfare payments are expected to drop in the upcoming financial year thanks to an easing of COVID-19 support measures.
The 2022/23 federal budget has forecast the amount going to welfare payments will drop by 5.9 per cent.
It's estimated $221.69 billion will be spent on support payments next financial year, compared to $227.8 billion in 2021/22.
The drop in spending has largely been attributed to the end of the COVID-19 disaster payment in December last year, as well as the pandemic leave disaster payment, which is due to expire on June 30.
However, it's expected the welfare and social security spend will rise by 3.3 per cent by 2025/26, largely driven by increases in spending on aged and disability support payments.
By 2025/26, welfare spending is expected to reach almost $250 billion.
Social security and welfare payments will make up more than one-third of government expenses in the 2022/23 budget, contributing to 35.3 per cent of the Commonwealth spend.
Financial support for seniors is expected to increase by more than nine per cent in 2022/23 to $27.7 billion, while total government assistance for veterans will rise by seven per cent in the next financial year due to a high number of military compensation claims set to be processed.
Disability support will rise by nearly five per cent next financial year and rise again by 9.6 per cent over the forward estimates.
The budget papers said this was due to an increasing number of people with a disability entering the National Disability Insurance Scheme.
Treasurer Josh Frydenberg on Tuesday night pledged the NDIS would remain fully funded.
More than $157 billion has been allocated to the NDIS over the next four years, with $33.9 billion set aside for the coming financial year.
As part of the NDIS spend, $3.5 million will go towards behavioural support training for 4000 workers who support NDIS participants.
The government has also unveiled a $52 million program called ReBoot, which will help 5000 young Australians develop employability skills and provide a pathway to a job.
