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

The bills before the House are one of the most savage attacks on the Australian safety net in living memory and, without a doubt, the most savage attack so far by this ruthless government on the Australian safety net since they have been elected. These bills are the classic Abbott playbook of double-dealing. It is sneaky and dishonest attempt to fundamentally recast the Australian social contract. This worthless government is attempting to stampede helter-skelter harsh and unprecedented cuts to Australia's family payments, income support and pension system. This is an unparliamentary assault on millions of Australians by this worthless government intent on ripping away money from low- and middle-income earners, young job seekers and senior Australians. And wrapped in this package of cuts and broken promises is the government's ruthless and dishonest attack on pensioners which, in some sort of attempt at peak absurdity, is now before both this chamber and the Senate.

Today Labor will vote against $11 billion worth of cuts. We will vote against these cuts because these changes, like the rest of the budget, undermine people's opportunities to be part of a living community. The changes in this bill take little account of the true need of millions of Australians. These changes further diminish the chance for dignity and for Australian's to participate equally in our country. These changes reduce people to a below-standard income when they have been overtaken by unemployment, illness, disability, veterans' service or indeed age. But the real shame of these changes is the loss of hope they provide people, and it is frightening.

There are people in this country who currently have no money to fall back on, and these changes hurt them; there are many people in this country with the stress of rent, and these changes hurt them; there are parents who, as we speak, cannot afford to give their kids some dollars each week for a birthday present for a friend's party, or for a school excursion, or for the right to participate in musical lessons or sports carnivals; and, even worse, there are children who know not to ask their parents for money because their parents cannot supply it, and these changes hurt their hope. This government is adding to the despair of a great many Australians and it should hang its head in shame.

Let's look at the changes they are making. They are abolishing family tax benefit B for families with children over the age of six years. Where did they say that before the last election? They are leaving young people with no income support for six months. Where did they say that before the election? They are shifting young people from Newstart allowance to the lower youth allowance, leaving them $2½ thousand a year worse off. They have abolished the senior supplement. In question time, we saw this pathetic excuse for a Prime Minister trying to pretend that abolishing the senior supplement was no big deal. It leaves seniors nearly $900 a year worse off. They have got rid of the pensioner education supplement; they have bulleted the education entry payment; they are freezing family tax benefits for two years; they are reducing family tax benefit end-of-year supplements and ceasing indexation; they are applying an interest charge for certain student debts; and they are replacing student start-up scholarships with income contingent loans. Labor will vote against these measures and Labor will vote against the government's cuts to the pension.

Joe Hockey said there are many hard days in opposition. What he is right about is this: it is always a hard day every day we listen to this government lie about cutting pensions. It is always hard for the true believers in this country to have a proper safety net when these people opposite and their worthless ministers say they are not touching the pension and that the pension goes up every six months. What a pack of disreputable twisters they are! We know, and they know, that the rate of indexation is being cut. No wonder the Tasmanian MP is leaving. Look what they are doing to Tasmania—no hope and no chance. Run away and run out of here—the electorate will still find you.

On the day before the 2013 election, Tony Abbott promised there would be no cuts to pensions and no changes to pensions. These bills are irrefutable proof that Tony Abbott's word is not worth the paper it is written on. The verdict is in, the evidence has been found and the smoking gun is here: this government has broken its promise on pensions. After lying to pensioners in order to get elected, the Prime Minister wants to cut seniors concessions; he wants to abolish the senior supplement; he wants to cut pensions; he wants to freeze superannuation; he wants to give Australia the world's oldest retirement age; and he wants to punish senior Australians with a petrol tax, a GP tax, new costs for pathology tests and new costs for diagnostic imaging. This chap who would be Prime Minister does not even know the changes that he is making—you know you are in trouble when you know less about the health system than the health minister! His own budget papers—the document that dare not speak its name—show that $450 million is coming out of the pockets of Australia's pensioners in the first four years alone. That is $450 million that will be taken off pensioners. I bet they are high-fiving each other over in the blue-carpet land. It is a good day's work done when they can do over the pensioners! Anyway, they think pensioners are leaners, don't they?

According to the Parliamentary Budget Office, the cut to the age pension will be almost $7 billion per year 10 years from now. This Australian Council of Social Services has estimated that Tony Abbott's pension cuts will cost pensioners $80 per week within 10 years. That is more than $4,000 ripped out of the pockets and purses of our most vulnerable Australians. What has happened to the once so-called small 'l' Liberal Party? There is nothing more extinct in Australia than a small 'l' Liberal. They should hand back the name 'Liberal' and instead be called the 'Radical Conservative Party of Australia', because that is what they are. They are the extreme right wing—the Tea Party. They are going to cut the age pension; they are going to cut carer payment recipients. Disability support pensioners and the veterans get a whack on the way through by this mob.

It is bad enough that we have a Treasurer who thinks that poor people do not drive cars, but it is even worse, in fact, that the Prime Minister thinks that they should have to pay for his broken promises—his unscrupulous desire to say and do anything to win power and then forget the promises he made. Today, Labor disagrees most sincerely with this government's propositions. Labor dissents from the vision of this country—the bleak and sterile vision—that those opposite would give Australia. We have fought these pension cuts. We have had a few victories—haven't we, member for Menzies?—and we will continue to fight them.

There was some trifle moment in the parliamentary debate when there was pause given yesterday to reflect that it was Gough Whitlam who first recognised the need to link pension levels to the growing standards and costs of living within the broader Australian community. Whitlam was right then, and Labor is right now. We will stand by Australians who have worked hard their whole life, paid taxes their whole life, made a contribution, built our communities and raised their children. We will stand by these people. We will fight for their right to a secure and dignified retirement.

Let us be clear: the age pension is not a king's ransom or a windfall going to the so-called leaners in Australian society. It is a most modest sum. I would like to see some of the people opposite live on it. Let us be clear: the pension is a post-retirement income support payment. It is not a family payment or a subsidy or a supplement that helps with other costs. For millions of Australian pensioners, it represents their entire household income. The mob opposite, with such rank disrespect for the political word and promises they made, would cut the indexation rate. Then, in the height of arrogance, they come to parliament every question time and lie about lying.

Gough Whitlam recognised this fundamental principle in the 1970s. He announced a commitment to maintain a pension rate at 25 per cent of average weekly earnings. Gough Whitlam's vision was for an Australia where all aged people can live in comfort and dignity. Whitlam recognised that the government have a responsibility to help pensioners keep up with the cost of living, but the government disagree. This recalcitrant, conservative and extreme right-wing mob only have one plan for Australia's retirees: to push pensioners below the poverty line. They think that pensioners do not drive cars. They think that pensioners should have to pay more for their medicines and to go to the GP. They think that pensioners should pay more for the diagnostic imaging which may well help prolong their lives. They think that pensioners do not deserve the modest concessions they receive. They certainly do not think that pensioners deserve the security and certainty of a fair pension.

After 12 long years of neglect under the previous conservative government, it took another Labor government in 2009 to increase this benchmark to 27.7 per cent of male total average weekly earnings and to introduce a new pensioner and beneficiary living cost index. We sit for every question time. When confronted with these facts, the Prime Minister constantly says, 'I'm doing pensioners a favour,' and he is cutting their indexation. I hope the Prime Minister keeps lying to himself and keeps misleading the parliament on what he is doing, because the Australian electorate can work him out. They knew 12 months ago that they had doubts about him. Twelve months on, those doubts have been confirmed.

We have inequality in our society and it is being compounded by the failure of the Abbott government to create opportunities for the overwhelming number of our lower income, fixed income and middle-income Australians. Now the government are undoing the good work we did and they are lying about it. This is the Prime Minister who is used to making excuses for lying. He actually said, 'Don't listen to what I say; make sure you get it in writing.' This is the letter he gave in writing to Australians. This is a letter to pensioners—

Mr Hunt interjecting—

Greg, do not say anything; you might learn something. This letter to pensioners is lying about pension cuts. It proves that what he writes is as worthless as what he says. I will repeat that: this letter to pensioners lies about the pension cuts and proves that what he writes is as worthless as what he promises in an election. One point two million dollars of taxpayer money for a letter is not worth the paper it is printed on. What an extraordinary display of contempt for Australian pensioners and Australian taxpayers from this slippery Prime Minister.

Let me say again for the people of Australia: the Abbott government are cutting the pension and now they are trying to gag debate on the future of the Australian safety net. They want to drop the guillotine on bills that threaten the decency and generosity of Australian society. We will oppose these pension cuts, where 3.7 million pensioners will be up to $80 a week worse off within 10 years. The Parliamentary Budget Office has confirmed this fact. Regarding the veterans' pension, the government make me frustrated beyond all belief when they talk about their love of the flag and their love of veterans. It only extends as far as a parade, a salute and an RSL function. When it comes to actually standing up for veterans, that is a different issue. These are patriots to the very superficial level that we see. A $65 million cut to war pensions is little service or recompense from this government.

The Department of Veterans' Affairs currently provides 140,000 service pensions and 84,000 war widow/widower pensions. All of these people will be up to $80 a week worse off within 10 years. Then look at the deeming rates. They are not content with going after the full pensioners; they have also had enough time in their busy diary to go after part-pensioners too. Part-pensioners face a double hit through reductions in their part-pensions because of the government's plan to reduce the deeming rates. As a result, if a pensioner has some shares or a small fixed term deposit in a bank, they will be punished by further reductions in their part pension.

We have the world's oldest retirement age. This, again, goes back to the out-of-touch nature of this arrogant government. Increasing the pension age—

Mr Hunt interjecting—

The member for Flinders. The worst sort of workplace injury he will ever suffer is a paper cut, yet he wants everyone else to work to 70. Increasing the pension age to 70 is an attack on the Australians who do the real heavy lifting. We on this side of the House know the real Australians who do the real work. Many of us have spent our working life representing tradespeople, labourers, cleaners, nurses and others who make a living with their skilled hands, strong minds and strong backs. Many Australians started work at 15, not playing in Liberal student politics until they had to finish.

It is disgraceful that this government wants to force Australians to work until they are 70. Look at the mob sitting opposite trying to interject pathetically. They want you to work until you are 70, but they have not thought about how to lift workers compensation beyond 65. The usual Liberal, no idea. I think Alicia Silverstone would play Greg Hunt in the movie of 'Clueless'!

At the same time, they are freezing superannuation, abolishing the low-income superannuation contribution, undermining the ability—

Mr Hunt interjecting—

I love this mob opposite. They will give a tax holiday to people who have over $2 million in their superannuation retirement, and they will introduce a new tax on 3½ million Australians who earn less than $37,000 a year. We could not have written this script. We could not have believed they would be so mean-spirited, but there they are at again.

We believe that Australia should have the world's best retirement savings system not the world's oldest retirement age. They do not know anything about pensioners' cost of living, otherwise they would not have axed the $1.3 billion in funding for seniors concessions, money which assisted seniors and pensioners for electricity and water bills.

Look at Greg Hunt over there. He says he is a great man on bills. I tell you what, you have taken away—

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