Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer: Treasurer, how is it strongly arguable that pensioners are going to be better off under this budget?

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

The starting point is that the coalition has abolished the carbon tax, and pensioners keep all the compensation associated with the carbon tax. We have delivered and, what is more, it is the Labor Party who wants to reintroduce the carbon tax, which represents $550 per household each year after tax money for pensioners. The starting point is: we are supporting the pensioners of Australia and we are doing so by getting rid of the carbon tax, by ensuring they keep the compensation and by ensuring that the age pension is sustainable.

The age pension represents nearly 10 per cent of the Australian government's budget, and we want to make sure that the age pension continues to increase every six months. And it will continue to increase every six months, but you can only do that if you have a government that lives within its means. This will come as a rude shock to the Labor Party—a government that lives within its means? Shock, horror! Why would the Labor Party ever believe a government could live within its means? I know it is a great benchmark. I know it is something you will never achieve, but the bottom line is: the only way the age pension system can be affordable, sustainable and generous into the future is if you have a government that lives within its means.