There is a lot of concern around the Federal Government’s new jobs program for remote welfare recipients.

Authorities say Aboriginal people in the Northern Territory could end up working for just $5 an hour under changes to the Remote Jobs and Community Program (RJCP).

The Federal Government says it will place stricter requirements on welfare recipients already working for the dole.

Currently, Aboriginal workers under the RJCP in NT communities work 16 hours a week for Newstart wages ($515 to $557 per fortnight).

The new changes will see welfare recipients in remote areas working the equivalent of 25 hours a week for 52 weeks of the year in order to receive their welfare payments.

When added to existing intervention policies, it means some Aboriginal workers' $10 an hour will be split in two; $5 an hour directly and the other $5 put on a limited-use Basics Card. 

During this time, remote welfare recipients will also be expected to look for a job.

As part of the same reforms, recipients in regional areas and cities will only have to work under that rate for six months.

The changes are in response to a report prepared by mining magnate Twiggy Forrest. 

Leaked copies of the coming changes suggest that if welfare recipients under the RJCP do not turn up to work, their payments are docked, and job providers will be contractually obliged to report non-compliance.

“The changes proposed will ensure RCJP job seekers do attend their appointment or feel the consequence of their passive welfare behaviour more immediately,” a briefing document obtained by Guardian Australia says.

“Job seekers will learn the behaviours expected of workers, for example by there being immediate consequences for passive welfare behaviour.”

Parliamentary secretary on Indigenous Affairs Alan Trudge said in a News Limited publication this week; “The new remote work-for-the-dole scheme will have a no-show, no-pay policy”.

“Fail to turn up one day, then the person’s payment for that week will be 20 per cent lower. Strict rules are constantly requested by community leaders. We will deliver,” he said.

Jumbunna Indigenous House of Learning researcher Paddy Gibson refers to the new deal as “essentially free labour” in an interview with independent outlet New Matilda.

He said Aboriginal Australia had been slugged with a worse deal than they had under the previous scheme, the Aboriginal-controlled Community Development Employment Projects (CDEP)

“Most of the work under RJCP is free labour for these big shire councils. I know people grading roads, fencing, people doing all sorts of construction projects, people in child care and aged care.

“In theory this is already happening with people having to work 16 hours. The difference between this and CDEP is that CDEP was Aboriginal controlled, and it was an actual job with a wage covered by the industrial system.

“A lot of the time it was supporting black enterprise and you could do more work and get paid for it.

“Under the RJCP there’s no provision for top up pay.”

He said there were many ways that the RJCP system would discourage job seekers from finding other work, as it would mean Newstart wages were cut.

If doing more work yields less reward, very few will bother, he said.

“If you do any work that brings in an income, it will actually make the amount of money you are getting on the dole go down. So you could get a 10-hour casual contract at the local store, but why would you when you still have to work 25 hours for RJCP for a reduced dole?”