Senate debates

Wednesday, 16 October 2019

Questions without Notice

Economy

2:22 pm

Photo of Dean SmithDean Smith (WA, Liberal Party) Share this | | Hansard source

My question is to the Minister for Families and Social Services, Senator Ruston. Can the minister update the Senate on the importance of the government's economic plan to support a targeted, comprehensive and sustainable welfare system?

Photo of Anne RustonAnne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | | Hansard source

I thank Senator Smith for his question. We all know that social services touch most Australians at some time in their lives, and invariably it's when they are at their most vulnerable, which is why it is absolutely critical that our social security system remains sustainable so we can continue to provide the support Australians need when they are most in need. We make a promise to Australians that, if they find themselves in particularly difficult circumstances, we will provide them with the support they need, as long as they achieve the eligibility requirements, and they will be supported for as long as they need it. If we make that promise, we will keep that promise. On this side of the chamber we never want to run the risk of running out of money so we aren't in a position to continue to pay the benefits we have promised the Australian public we will.

In case those opposite want some information, at present the bottom 20 per cent of households receive the largest social assistance benefit of anyone. It is the responsibility of this government to ensure that our social security and welfare system is sustainable into the future so we can continue to provide support for those who need it. We believe the social security system is way more detailed than just dealing with the safety net payments. It's about creating jobs—1.4 million jobs since we came into government. It's about creating pathways for those jobs and breaking down the barriers Australians face when they're trying to get a job. We have myriad different programs we are successfully dealing with in the marketplace at the moment to make sure we get people into work. The sustainability of our social security system relies on a strong economy, and that's what we have.

Photo of Sue LinesSue Lines (WA, Deputy-President) Share this | | Hansard source

Senator Smith, your first supplementary?

2:24 pm

Photo of Dean SmithDean Smith (WA, Liberal Party) Share this | | Hansard source

Can the minister advise the Senate of Australia's welfare trends?

Photo of Anne RustonAnne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | | Hansard source

The proportion of Australians on working-age income support payments has actually fallen to the lowest level in 30 years, at 14.3 per cent. Under this government, there were 230,000 fewer working-age recipients of income support between June 2014 and June 2018. There have been significant decreases in all types of payments over that period, but one that I think is particularly important and worth mentioning in this chamber is a 26.8 per cent reduction in the number of youth allowance payments. That is a massive increase in the number of young Australians who find themselves now in work or studying. Since becoming the minister, I've had the privilege of seeing a number of programs in the workplace actually working in getting young people into work. They're assisting young people to deal with their situation, and it's through strong economic management and the strong economy that we continue to be able to deliver these programs.

Photo of Sue LinesSue Lines (WA, Deputy-President) Share this | | Hansard source

Senator Smith, your second supplementary question?

2:25 pm

Photo of Dean SmithDean Smith (WA, Liberal Party) Share this | | Hansard source

Can the minister update the Senate on the long-term sustainability of the welfare system?

Photo of Anne RustonAnne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | | Hansard source

While the population in Australia has grown over the last year, the total number of people who rely on welfare has decreased. The data from the soon-to-be-released Priority Investment Approach will actually reveal that there has been a significant reduction in the long-term or lifetime cost of Australia's welfare system—$5.7 trillion over the lifetime as opposed to $6.3 trillion. That's a 10.1 per cent decrease in the amount of taxpayer money that is going to be required to fund our social services system into the future, and that is a saving that will underpin the sustainability of our welfare system not just now but for future generations. We cannot borrow from future generations to pay for the welfare of today. Our strong economy allows us to keep our promise to Australians that, when they fall on hard times, we will be there to support them. It's a promise a strong economy allows. (Time expired)