People who fail to meet job-seeking obligations could have their dole payments docked for up to a month under sweeping changes to Australia's welfare system.
The new demerit-point regime is one of a raft of changes to welfare payments targeting people who are gaming the system.
The government's welfare omnibus bill effectively cleared the Senate on Wednesday.
Under a new compliance framework, people could lose welfare payments if they fail to apply for jobs or don't meet other requirements like study and training.
Liberal frontbencher Alan Tudge said the demerit-point system would enable early identification of people who need help, but create serious consequences for those "taking the taxpayer for a ride".
People will no longer be able to use drug and alcohol dependence as a reasonable excuse for not meeting their obligations, while wait times for unemployment payments will also be increased.
From 2020, a new Jobseeker payment will replace Newstart and six other payments.
A payment for low-income earners who lose a spouse was saved after the government backed a One Nation amendment to retain the bereavement allowance.
That prompted outrage from Labor who attacked Senator Pauline Hanson for being "shamed" into a backflip one day after voting to scrap the payment.
The changes will also remove "intent to claim provisions", which protect people who are entitled to welfare, but cannot lodge a claim due to personal circumstances.
A controversial move to drug test welfare recipients was dumped from the bill after it became a crucial sticking point in negotiations.
The government remains committed to drug test trials, despite acknowledging they would not pass the Senate.
Greens Senator Rachel Siewert said even without the drug testing trials, the reforms would hurt people with disability, bereaved people, people struggling with addiction, and older and unemployed Australians.
"This bill further erodes our social safety net, making it increasingly less accessible, more paternalistic and reducing payments," she said.
Australian Council of Social Service chief executive Cassandra Goldie said the measures would worsen the lives of people experiencing disadvantage.
"This bill will increase already shockingly high homelessness numbers. More than 80,000 people stand to be cut off from payments after just 12 months of this new legislation," Dr Goldie said.
The government clinched the bill's passage through the upper house with support from Senator Hanson and her two One Nation colleagues, the two Nick Xenophon Team senators, and independents David Leynohjelm, Derryn Hinch and Fraser Anning.
The amended legislation must go back to the lower house for approval, and then return to the Senate for a final sign-off before clearing parliament.
Australian Associated Press
