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

My question is to the Prime Minister. Jill O'Connor from Dobell is worried about her daughter and two grandchildren, aged eight and five. Jill says her daughter is starting to feel panicked because this government wants to stop paying family tax benefit part B to families once their youngest child turns six. Jill says her daughter relies on family tax benefits to help with the day-to-day costs of raising her kids. Will this government reverse its $3,000 a year cut to single income families?

Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

I thank the member opposite for her question. The question has got this very sharp ideological edge. Having inherited this portfolio, I do not see much ideology; I see practical layers of administrative problems. Here is where we are, as I think you know well deep down: 35 per cent of the national budget goes to welfare. The DSS budget is $154 billion a year. The income tax we bring in is $196 billion a year; 80 per cent of all income tax goes straight to the welfare budget. Of course, it has been growing very rapidly over time—as you know, because you were the steward of that rapid growth.

Ms Macklin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Jagajaga will cease interjecting.

Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

What we look at when we look at this portfolio is very rapid growth over time. A decade ago, the portfolio had $83 billion worth of expenditure. Today, it has $154 billion worth of expenditure. In 2026, that will rise to $277 billion worth of expenditure. The difficulty is that you pretend that there is no need for expenditure restraint—none. What you have said and what everyone here has to realise—

Opposition members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister will resume his seat. The member for Herbert will cease interjecting. The member for McMahon will cease interjecting. He is denying the member for Hotham the call. The member for Gippsland.

Clare O'Neil (Hotham, Australian Labor Party) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The point of order is on relevance. I accept the need for the minister to provide some context, but he has gone for a full minute and a half now without mentioning the family tax benefit, and I ask you to draw him back to it.

Honourable members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

No. The member or Hotham will resume her seat. The minister is in order. The level of interjections has been loud. I have asked the member for Jagajaga, the member for Moreton and the member for Sydney to cease interjecting on two or three occasions. I remind them of that.

Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

The member is quite right—I should get to the point of the family tax payments. The family tax benefits and the changes that we have proposed and are before the parliament that you are opposing are designed to pay for the childcare package that the Treasurer, when he was the minister, brought in. It is a childcare package that you support, and indeed when pressed on radio—

Honourable members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister will resume his seat. The member for Griffith will cease interjecting. The member for Adelaide will cease interjecting. The member for Lyons.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. Could you ask the minister to speak through the chair, and address his remarks through the chair. At the moment—

Honourable members interjecting—

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Watson will resume his seat. The member for Griffith will cease interjecting. The minister has the call. He will address members by their correct titles, as he knows. The member for Herbert will cease interjecting.

Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

The family tax benefit changes that are proposed are linked to, and will pay for, the very good childcare measures that the Treasurer introduced.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney is now warned!

Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

The member for Jagajaga was asked about this very question. A journalist said to her, 'You have to pay for the childcare changes somehow, don't you?'

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Griffith is warned!

Christian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

The member for Jagajaga said, 'It does have to be paid for somehow.' And, in fact, we would agree with her that they do have to be paid for somehow. So the suggestion that we have before the parliament is that they should be changed by modest changes to the family tax benefit system and, in fact, by changes that do indeed encourage greater workforce participation. Family tax benefits at the moment, going back to the point of that welfare bill, are $20 billion a year of taxpayers' money going to families. We think a modest change to pay for the childcare package is a very good idea but, as the member for Jagajaga said, the financial reality is that that change to child care, which is very positive and which you seem to support, has to be paid for somehow. (Time expired)