Greens leader Richard Di Natale has accused the federal government of demonising the most vulnerable in its welfare reform through a driver's licence-style demerit points system that will raise little money.
Treasurer Scott Morrison says the welfare overhaul, which will include tough jobseeker compliance measures, random drug tests and verifying of single parents relationship status, will catch those deliberately cheating the system and raise $632 million over five years.
Senator Di Natale said individuals who through no fault of their own were forced into unemployment for short periods could be forced to take humiliating drug tests.
"We're one budget away from taking people who are receiving income support and giving them a public flogging," he told reporters.
"Scott Morrison wants to go in to your bathroom to see whether you're taking drugs, he now wants to go in to your bedroom to see who you're sleeping with.
"Nobody seriously believes this is about the government cracking down on some huge rort that exists in this society, this is red meat for its conservative base."
Billions of dollars could be raised by cutting "corporate welfare" such as diesel fuel rebates used by the mining industry and property handouts, and not ending the two per cent levy on high income earners, he said.
"There is no question that based on almost every indicator wealth inequalities in Australia are getting worse. We are becoming a less fair society and we have to do something about that," he said.