welfare payments to drop?

Welfare payments could be cut to encourage workers to move to labour-starved, booming mining States like WA as part of a radical rethink of how Australia overcomes its increasingly high-cost economy, ANZ's Mike Smith said yesterday.

Mr Smith believes that the pressure on the economy will only grow, given he expected the Australian dollar to head to at least $US1.10 for the foreseeable future.

Bill Shorten said a Federal Government submission to the Senate inquiry on increasing unemployment benefits argued lifting the dole would have the "distinct disadvantage of reducing employment incentives".

I've heard this mentioned in two places now, as a means to get recalcitrant unemployed to move to places where there is plenty of work. I think I know what the reaction will be in the lucky country. Welfare increase would seem to be a very hot potato.