Welfare payments are being consolidated and some new welfare recipients will be subject to random drug testing.

People deemed to be at risk of substance abuse will be required to undertake random saliva, urine or hair follicle tests for drugs in three locations from next year.

Jobseekers who test positive to drugs will have their payments quarantined. About 450 people each year will be blocked from claiming the Disability Support Pension on the basis of drug and alcohol abuse alone.

Newstart and Sickness Allowance recipients will be moved to the new JobSeeker Payment, which pays the same. Jobseekers aged up to 49 will now have to undertake 50 hours of approved activity a fortnight. There will also be longer waiting periods for those with liquid assets.

The Cashless debit card will be introduced in two new locations.

Economists say this may make welfare recipients' lives more difficult, but ultimately very few will be forced off welfare.