Children of beneficiaries who are home schooled may be forced into a registered school under the Government's welfare reforms.
Under the Social Security Amendment Bill, only beneficiary parents in limited circumstances will be able to home educate their kids, where transport is unavailable, or because of severe physical or learning disabilities.
Home Education Foundation National Director Barbara Smith says it's harsh and discriminatory.
She says beneficiaries who want to home school are actually saving the Government money.
Ms Smith says it's time the Government stopped treating beneficiaries and home educators like second class citizens.