Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Hansard source

I thank the senator for the question and for her interest in 'nudge' economics. It is a new branch of economics which seeks to influence behaviour by changing, for example, the way a question is asked or by the choices you give people. Rather than have people opt into something, you give them a chance to opt out—for example, on a workplace pension scheme.

What the good senator is referring to is that some years ago I attacked a Labor initiative to do with nudge economics because of my concern that, under a government that was increasing the amount of regulation in the economy, nudge economics would be used in order to increase social engineering of a Labor variety. But on coming to government, and in the context of an agenda to reduce regulation, with appropriate terms of reference, the government has decided to put together a behavioural economics unit, because, rather than be black and white about these matters, we are prepared to have an open mind and test these concepts in a way that is consistent with our broader deregulationist philosophy.