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

My question is to the Minister for Social Services. In an interview on Sky News just now the Minister for Social Services described the government's new family cuts like this: 'In the measures we have put before the parliament there are snakes and there are ladders.' Who are the families who will suffer as a result of the snakes in your package?

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

That is very good! The family tax benefit system has been growing very substantially. The government of the members opposite made $7 billion worth of savings by pausing indexation on FTB part A and FTB part B. They made $6 billion worth of savings by removing the indexation of FTB rates to pensions. They made $2.5 billion worth of savings by not proceeding with the additional increase to FTB part A payments. So let's not pretend that members opposite have not also looked to make expenditure restraint savings from the FTB system. That was $7 billion plus $6 billion plus $2.5 billion.

We also, like members opposite, have recognised the need to make savings inside the system. We have recognised that need. There are two ways in which we are making savings inside the system. You may want to describe the first way as a snake, as I did, because I think it is a fair description. There are savings. We are phasing down and removing an antiquated supplement system through FTB savings. That supplement system was designed to pay debts which are now no longer the problem they used to be. We are phasing that down and removing it and we will put the savings back into FTB A so that families will receive $10 more a fortnight. That is a ladder. When families receive more money—

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

a week for their child care, that is a ladder. That is a ladder into employment. That is a ladder into workforce participation and—

Ms Macklin interjecting—

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

The member for Jagajaga is warned.

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

a ladder to building prosperity for their families.

Also we have unequivocally said that we are making savings by removing family tax benefit B when a child turns 13. When a child turns 13, we consider there is an opportunity, particularly if people have had the opportunity to avail themselves of child care up to that point, for a single parent or a couple to re-engage in the workplace. Yes, that is where we are making savings.

Ms Macklin interjecting—

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

I remind the member for Jagajaga that she has been warned.

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

The money from the two areas where savings are being made is being reinvested into child care. People will get extra per week to get better subsidies for child care. It is being reinvested into family tax benefit A, where people will be getting an extra $10 a fortnight. Young DSP recipients will be getting more than $10 a fortnight more. Youth allowance recipients will be getting more than $10 a fortnight more. We are reconsidering an existing profile of spend in a way that we think engenders workforce participation.

I do not think I can make it much clearer than that. But I will say to those opposite that when you cut money from the system you did nothing else. You took out $6 billion, $2.5 billion and $7 billion and did nothing else. (Time expired)

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

The level of interjections is far too high. The members for Isaacs, Bendigo and Griffith have been continually interjecting. I am sure the member for Wakefield was in there somewhere.

Mr Champion interjecting—

He is interjecting now. The member for Wakefield will cease interjecting. I remind the member for Jagajaga that she has been warned.