The ACT government is prepared to face off with the Commonwealth over changes to the welfare system if a proposed federal overhaul is too ''dramatic''.
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Social Services Minister Kevin Andrews indicated on Tuesday an overhaul of welfare, saying that too many Australians depended on the government for their incomes.
Drawing on the new ''10-year review'' given to the Abbott government by the Department of Human Services, Mr Andrews said Australia needed to avoid becoming a welfare state.
But ACT Chief Minister Katy Gallagher said staff in the capital would scrutinise proposed changes and take it up with the federal government if cuts were too ''dramatic''.
''We have to remember that Australia … was built up on this belief that those who need an extra hand, get an extra hand and that we don't form too many judgments on whether that's right or not,'' she said.
''I'm all for looking at ways to make sure taxpayers' money is spent wisely, but I don't think we need to always focus on the most vulnerable and most in need as the most obvious place for starting that discussion. Let's face it, living on Newstart isn't a life that many of us would like to lead.''
