Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Hansard source

I thank the honourable member for the question. He knows and I know that it is hugely important that we provide a well-resourced, sustainable safety net for those most vulnerable in the community. It is hugely important. Of course, welfare represents 35 per cent of the total Commonwealth budget, so we spend more on welfare than we do on health care for our citizens. We spend more on welfare than we spend on the education of our children. We spend more on welfare than we spend on the defence of the nation. Of course, whilst it is important to have a well-resourced, sustainable safety net, what matters most is that we can afford it. That is what matters most.

The fact is we do have changing demographics, and I, on this very rare occasion, will quote the former—no, the current—member for Lilley. I am sorry I made that mistake. He said in a press release with the honourable member here: 'Increasing the pension age is a responsible reform to meet the challenge of an ageing population and the economic impact it will have for all Australians. Australia must move towards a higher pension age over the next decade.'

It is quite interesting because the trajectory of our increase in the pension age eligibility to 70 follows the Labor Party's. But, obviously, given that it is going to 70 in the year 2035, I would say to you it is responsible to give people good notice that these are the issues that need to be addressed. It is easy just to put it aside. It is easy to be a critic. All of the criticism from Labor thus far has been political. None of it is about the policy.

Ms Butler interjecting—

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