The Senate has knocked back the Federal Government's plans to change compliance requirements for people on unemployment benefits.
Currently, a job seeker can have two months of benefits docked if they miss three job interviews or work-for-the-dole requirements in a year.
Under the proposed changes, a job seeker would initially lose just one day's pay for each missed appointment.
The Opposition's employment participation spokesman, Andrew Southcott, says the Government's bill watered down mutual obligation.
"What they are proposing is a compliance regime for job seekers which is both more complex and less effective. So, the Opposition was unable to support this change," he said.
Senator Nick Xenophon also voted with the Opposition and the bill was defeated in the Senate last night.
The Federal Government is confident the bill will be passed when it reintroduces it to the Senate again next year.
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