Govt defends scrapping job incentive bonus

Employment Minister Michaelia Cash has defended scrapping an incentive payment for the long-term unemployed to find work.

The government announced in Tuesday's budget it was dumping the Job Commitment Bonus scheme, which offered cash rewards of up to $6500 for the long-term unemployed who find work and remain hired for two years.

"Job seekers were actually staying in jobs without the need to put their hand up for the payment," Senator Cash told a Senate estimates hearing in Canberra on Friday.

Employment department officials confirmed more than 3000 people had claimed the bonus.

But secretary Renee Leon said more people were remaining in work than collecting the bonus.

"I wouldn't like to go as far as to say it wasn't working, in the sense that for those 3000 claimants it may well have helped to incentivise them," she said.