Tony Zappia (Makin, Australian Labor Party, Shadow Parliamentary Secretary for Manufacturing) Share this | Link to this | Hansard source

Madam Speaker, my question is to the Prime Minister. I refer to ACOSS analysis which shows that the Prime Minister's changes to pension indexation will leave single pensioners $160 per fortnight worse off after 10 years. Prime Minister, how is a reduction of $160 per fortnight not a cut to pensions and not a broken promise?

Government Members:

Government members interjecting—

Opposition Members:

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There will be silence on my left!

Mr Butler interjecting—

A government member interjecting—

The member for Port Adelaide will desist, and whoever he is interjecting with will also desist.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The government has, as the member suggests, changed indexation rates at various times from male total average weekly earnings to the consumer price index. We have done it because we want pensions and other benefits to be sustainable for the long term. I do not necessarily accept the analysis that the member cites, and obviously we will be looking at that piece of analysis and we will be coming up with a response at the right time.

There is nothing wrong with changing the indexation from male total average weekly earnings to the consumer price index. And why do I know there is nothing wrong with changing the indexation from MTAWE to CPI? Because Labor did it. Labor did it in the budget couple of years ago. In budget measures 2009-10, they changed the family tax benefit family payment indexation from MTAWE to CPI. That is what they did. So not only is the member for Jagajaga the mother of the Medicare co-payment, she is the mother of CPI indexation.

Ms Macklin interjecting—

Madam Speaker, I am not going to mislead; I am going to quote what the member for Jagajaga said at the time in 2009. She said, 'These reforms'—that is, changing indexation to CPI—'are designed to ensure the current system is sustainable and provides continuing support for families who need it most and encourage participation and productivity'.

Government members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There will be silence on my right!

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

She was honest then. She was telling the truth, and now I think she is just having—

Mark Dreyfus (Isaacs, Australian Labor Party, Shadow Attorney General) Share this | Link to this | Hansard source

You need to tell the truth!

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Isaacs is warned!

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Well I just think she is playing politics now.