House debates

Thursday, 12 November 2015

Questions without Notice

Family Payments

2:59 pm

Photo of Jenny MacklinJenny Macklin (Jagajaga, Australian Labor Party, Shadow Minister for Families and Payments) Share this | | Hansard source

My question is to the Minister for Social Services. Bronte works part time and is a single mother of three children in Mount Barker in South Australia. She says: 'I'm really concerned about how my family will cope financially if the proposed family tax benefits cuts come into effect. We are only just floating now.' How could the government possibly compensate Bronte for a 15 per cent GST if it has just cut her family payments by $4,700?

Ms Henderson interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Corangamite will cease interjecting! It is very difficult to hear the question if the member for Corangamite interjects continuously while the member for Jagajaga is asking it.

Photo of Christian PorterChristian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | | Hansard source

I thank the member opposite for her question. On a day when members opposite are very keen on having the government rule something in or rule something out, one thing that is very notable is that members opposite at no point in time have ever ruled out changes to the welfare system, nor are they trying to find their own savings in the welfare system—and nor should they do that. They certainly did not rule out, when they were in government, making savings inside the welfare system. It is interesting, with respect to the question that you asked, as to whether or not that was one of the 77,000 single mothers that you yourself moved from the parenting payment onto Newstart.

What it illustrates is that all governments who are serious about trying to plot a path back to surplus must investigate spending inside the welfare budget, which is one-third of the Commonwealth government's budget—in fact, over one-third. It is presently $154 billion a year, which compares very unfavourably to $196 billion worth of income tax which is collected. When you were in government you failed to rule out—and neither should you have ruled out—changes to this system.

Without knowing whether or not this was one of those 77,000 mothers you moved from the parenting support payment onto Newstart, it is a little bit difficult to answer your question. Perhaps I can summarise it this way: it is always very difficult, when you are looking at a group, to judge fairness—

Mr Dreyfus interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Isaacs has been warned!

Photo of Christian PorterChristian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | | Hansard source

which this debate clearly is largely about—on an individual-by-individual basis. No doubt, when you moved those 77,000 mothers from one payment to the next, you did that on the basis that you considered that to be fair as a workforce participation method. But, of course, inside that group of 77,000 there will always be individuals who have either weaker or stronger capacities for greater workforce engagement.

What we have said is that we are willing to look at savings reasonably and rationally inside the family tax benefit system. We found $4.7 billion worth of those savings, and a very large part of those savings will be reinvested into sweeping reforms to child care. We find ourselves in a situation where 165,000 Australian families—including families where there is a sole income earner and including single-parent families—are crying out for simplified, better, more accessible and affordable child care. Noting, of course, that under your watch—

Ms Chesters interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Bendigo has been warned twice. She will leave under 94(a)!

The member for Bendigo then left the chamber.

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | | Hansard source

But they're teenagers!

Photo of Christian PorterChristian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | | Hansard source

But what happens before a child is a teenager? We are offering a whole generation of mothers and coupled parents the possibility of better access to simpler, fairer child care—to change for a whole generation of Australians their ability to be enabled and engaged into the workforce. You are standing in the way of that process, because when you look at savings all you can do is help us pay for 14 per cent of necessary child care.