Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Brandis. I refer to the government's failure to address the budget revenue issues by ending unfair tax breaks that benefit the very wealthy, such as negative gearing, superannuation tax concessions and the capital gains tax exemption. I also refer to recent reports that indicate that 10 to 20 per cent of young people sometimes report going to bed hungry and that 17.7 per cent of children live below the poverty line. Given its failure on the revenue side, how does the government plan to cut expenditure? Is it planning to further cut the social safety net and, if so, how?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Senator Siewert, that is a very important and comprehensive question. I can tell you that the Prime Minister has from day one stressed the importance of Australia continuing to have a fair and strongly supportive social safety net. That is a core principle of this government, a core value of this government.

But that comes at a cost, and difficult budgetary decisions do have to be made. As you well know, Senator Siewert, there needs to be sufficient revenue to maintain that generous social safety net. At the same time, we are a government that believes in ensuring that the Australian taxpayer gets the best value for money that they can possibly receive. So we are a low-tax government.

Reconciling those two objectives—being a low-tax government so as to give taxpayers as much freedom and disposition over their incomes as is possible while nevertheless maintaining appropriate levels of social services—is always one of the great challenges of public policy making.

We think that in Australia, over the years, we have got that balance largely right. We have not fallen into the trap of the Europeans; nor have we fallen into the trap of the Americans, whose social welfare provision is much less generous than Australia's. There will be at the margins occasions when we want to adjust the critical balance between ensuring that we do not pay too much tax and ensuring that we have enough revenue to have a decent social policy. But this government is determined to get that balance right.

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I note that I did not get a clear answer as to whether they are cutting it and how. I refer to the government's previous expenditure cuts such as cuts to single parents and family payments, pushing people off the disability support pension and attempts to push young people off income support for six months. Will the government rule out making cuts to our social safety net?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Senator Siewert, I answered your primary question in the way that I did because I wanted to explain to you the values that inform this government's decision making. But now you are asking me to, as it were, pre-announce what may or may not be in the budget. Decisions about particular program design, decisions about the architecture of particular social programs, as you well know, Senator Siewert, are decisions that are announced in the budget. Out of respect for my colleague the Treasurer and out of respect for the orderly processes of this parliament I will decline to pre-announce such decisions, which, were they made, would be budget decisions.

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The government will rule out making changes to revenue—negative gearing, capital gains and other measures. Why will they not now rule out making cuts to our social safety net?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

The proper design of a generous social safety net will always be subject to adjustment. For as long as I can remember, I doubt that there has been a budget, Labor or coalition, in which there were not some changes made to the arrangements for the social safety net. But any such decisions, if there are any, are decisions for the Treasurer to announce with the budget.