Welfare cuts and jobs growth will help slash Australia’s debt by $23-billion over the next four years.

Federal Treasurer Scott Morrison has released the mid-year economic and fiscal outlook (MYEFO) update, showing the budget is on track to return to surplus by 2021.

The Turnbull government plans to cut $1.2 billion in social services by broadening the criteria for waiting periods for new migrants accessing welfare payments.

From July 1, 2018, the current two-year waiting period for payments including Family Tax Benefit, Paid Parental Leave and Carers’ Allowance will be extended to three years.

The Treasurer is predicting a cash deficit of $23.6 billion in 2017-18 – up from the $5.8 billion deficit forecast in the May budget.

Economic improvements, predominately through jobs growth, will deliver an $11.2 billion boost to the budget over the next four years.

The budget position has improved $9.3 billion since May, driven largely by company tax collections.

Click PLAY below to  hear a full wrap up of the MYEFO from 2GB Political Editor Michael Pachi