Mark Furner (Queensland, Australian Labor Party) Share this | Hansard source

We now know as a result of the general election of September last year that this government was elected on a litany of lies. The Prime Minister went to the election based on commitments of no cuts to education, no cuts to health, no cuts to the family budget, no cuts to higher education and no cuts to pensioners. We also know that all those promises that were made are based on a complete litany of lies.

Today the Treasurer has been exposed for what he is—a fraud; a Treasurer that has blown his credibility—on the basis of a report having come out by the Household, Income and Labour Dynamics in Australia Survey indicating that the analysis directly contradicts Joe Hockey's claims that Australia's welfare spending is out of control. The report indicates that welfare expenditure in Australia accounted for just 8.6 per cent of GDP in 2013 compared to the OECD average of 13 per cent. We also know that Australians have dramatically reduced their dependence on welfare. In 2001, 23 per cent of working-age people in Australia received a payment each week and in 2011 that dropped to 18.5 per cent.

As we go on and on after this budget, we find more and more exposure of these types of things that are occurring out there as people become wiser and wiser and wonder why they elected this government. I can speak with some experience of late, having had numerous communications with constituents in many areas in not only my duty seats but also the duty seat of Ryan. I have been talking to a lot of pensioners about how they have been impacted by this horrendous budget. Not only do they reflect on the Abbott government, but they also reflect on the Campbell Newman government, on its budget cuts and the impacts it has had on pensioners and everyone else.

In addition to that, I get copious numbers of emails. Some of the areas these come from surprise me. For example, I received an email recently from a cow cocky—or people may refer to them as a person from the bush or a person from out in western Queensland—complaining about the National Party siding with the Liberals with respect to cutting fuel excise. They complained about the fact that they can no longer take their horse float and their Toyota four-wheel drive on long journeys. I appreciate the fact that many of our people in the bush travel long distances, hundreds and hundreds of kilometres, to attend events. For some of those farmers, those cow cockies, those folk from the bush, that is the only chance they get to have a bit of enjoyment. And here are the National Party leaking their commitment to the Liberals to cut the fuel excise and make it more expensive for that type of journey—for people to have their little bit of luxury, take their horse to the local show and play polo. That is where they stand when it comes to fuel excise.

Returning to the pension: as I indicated, I have been speaking to copious numbers of pensioners in the seat of Ryan, particularly in Keperra. What they have been telling me is that they are extremely concerned in general about the indexation of pensions and how they are increased. We heard today from Senator Fifield in this chamber about how he relates to this particular issue. He said in question time that he is optimistic and that he is going to keep his fingers crossed that they will not be disadvantaged. Well, what do you say to pensioners out there? Do you say, 'On the hope of a win, keep your fingers crossed, be optimistic; we'll look after you'? We know that is not the case.

This government was elected on a litany of lies. It has changed the indexation from MTAWE to CPI. This area of CPI figures is one where I have had some experience in the past. The increase, and in some cases the decrease, of the CPI—because sometimes the CPI does go backwards or remains neutral—is an unfair advantage with respect to how increases occur. See you later, Bill; nice of you to come in! There is one example I use. I remember quite well in my term as a union official for the Transport Workers Union that one of the sites I was responsible for looking after was the old Telegraph. That was the newspaper in Brisbane, but it is long gone now. The owner-drivers there were reliant on the CPI for their increases. I recall that on one occasion the CPI figure was stagnant, so, in that particular period, there was no increase for those drivers as a result of the indexation that was linked to their particular agreement.

I did some research prior to today's debate on this and came across a graph that dates back to 1946. It shows that, in September 1951, the CPI was extremely high, on average about 25 per cent. Then over time, it has come down. In September 1976, it was around 15 per cent. In September 2001—that was just after the GST that the Liberal-National parties said they would never, ever introduce—it was about five per cent. The graph that I researched demonstrates that the CPI is trending down. Based on that history, we know what will happen to pensions.

Once again, I go back to Senator Fifield. He is on the record now as saying that this is no mistake; this is no matter of coincidence. It is a purposeful measure that they have put in place to make sure pensions are decreased. He actually said it has been put in place in an effort to slow the rate of pension increases. As is clearly demonstrated, MTAWE as opposed to CPI has always been a better indexation rate for increases and will always remain that way. We now know why the LNP have moved from that indexation rate to the CPI. Five hundred and thirty thousand additional pensioners will have their pensions cut because of the changes and reducing the threshold. On average, there is a $65 million cut to war pensions as well. That has been ventilated in this chamber today during the debates with respect to previous legislation.

In addition to those sorts of measures, I return to the Queensland budget, where the Premier decided to cut concessions with respect to transport and those sorts of things that pensioners in general enjoy. Pressure was put on the LNP government in Queensland by the Labor opposition, and they backflipped on that sort of approach. Sure enough, people were accepting of that and approved of that sort of measure. But we know that, as a result of what the federal government have done, those sorts of measures will still continue with respect to the change in the indexation.

Of course, the other factor is the increase of the age pension eligibility age from 67 to 70 from 2023 to 2035. We in government, naturally, increased it from 65 to 67. There was not generally a huge concern out there in the public. But there has been a major uproar about lifting that age to 70. People are saying, 'How can we manage to work in labour-intense areas, doing any kind of manual work?' How can they continue their employment up to 70 years of age?

There have been surveys and there have been stats produced which show that out of all the extreme measures in this budget that is number one in being of concern for people out there who have to work until the age of 70. Also, there has been the resetting of the deeming thresholds from $46,000 to $30,000 and from $77,400 to $50,000 from September 2017. In addition, there is the abolition of the national partnership through which the federal government provides money for the states and territories to deliver concessions to pensioners, state seniors and card holders. There is an ongoing range of issues that will affect pensioners as a result of this budget. Obviously, there are additional cuts which I do not have time to cover in today's debate but we know, as a result these severe cuts, that pensioners will be affected. (Time expired)