Katy Gallagher (ACT, Australian Labor Party) Share this | Hansard source

I rise to speak in support of the Budget Savings (Omnibus) Bill 2016. Labor has reached agreement with the government on a package of fairer alternative savings measures relating to the omnibus bill and other savings measures that total $6.3 billion over the forward estimates. Importantly, this is more than what the government originally put forward in the omnibus bill, all the while protecting the most vulnerable in society as well as ensuring ongoing important investments in early-stage renewable projects.

However, before I turn to the specific measures in the bill before us, I would like to remind all of us here today how critical it is to ensure that we repair the budget but do it in a fair and sustainable manner. Despite all the rhetoric and all the bluster about belt-tightening and living within our means, the facts speak for themselves. Under this government, we have seen a tripling of the deficit, net debt increasing by $100 million and the Treasurer having to admit last year that nearly all of their savings measures put forward have been spent.

Despite all of this, we saw the breathtaking $50 billion promise to deliver tax cuts to big business, including $7 billion to the big banks, all of which will only see a growth dividend of one per cent in 20 years time. This is a $50 billion tax cut that Labor simply will not support. Labor understand how critical it is that Australia maintains its AAA credit rating—the same rating that the government has put in jeopardy. It is why we put forward $130 billion worth of budget improvements in the election, including structural reforms that would see the budget improve over the medium term. It is why the opposition leader outlined a package of reforms that would improve the budget by $80 billion and that, if adopted by the government, would have our immediate support. It is also why Labor have developed a fair alternative to the government's superannuation package, which would deliver $1.5 billion more to the budget without resorting to retrospective legislation. The offer is still there on superannuation. Come and talk and be prepared to be constructive, as we have already shown ourselves to be in our negotiations over these budget measures.

In respect to the detail of Labor's position in regard to the detail of these bills, firstly, we agree to support 20 of the 24 measures in the original bill, as proposed by the government. Some of those measures—in particular, the minimum repayment income for HELP debts, the indexation of higher education support amounts, the removal of HECS-HELP benefit and the rates of R&D tax offset—we specifically said we would support during the election campaign. We also see that the government has now amended the bill to protect the most vulnerable such as those on Newstart, as well as securing the future of the Australian Renewable Energy Agency, also known as ARENA.

Prior to the election, Labor made it clear that we had not been given the opportunity to properly scrutinise the government's proposal to change the energy supplement measure for new recipients or seek advice from the Department of Social Services on its effects. The clean energy supplement was introduced by the Gillard government in 2012 as part of the clean energy package. Prime Minister Tony Abbott took to the 2013 election a promise to retain the payment. The Turnbull government took the decision to break this promise in the 2016 budget by proposing to stop payment of the energy supplement to new social security recipients from 20 September 2016.

Labor's analysis of the impact of these proposed changes indicate that a single mum on Newstart would be $4.40 a week or $220 a year worse off. A pensioner couple would be around $8 a week or $550 a year worse off. Labor would not support removing $220 a year from someone who is unemployed or taking $550 a year from an old age pensioner. Let us not forget that the most vulnerable Australians are those living on Newstart. Labor have made it clear that we believe Newstart payments are already too low. Many Newstart recipients are living in poverty. As at June 2015, there were about 748,000 Australians receiving the Newstart allowance. Some 550,000 are on the full rate, meaning they have no other source of income.

It is clear that the government was proposing a cut in real terms to Newstart. Cutting the energy supplement from Newstart would have made an already unreasonable level of support even more unconscionable. Labor will now support the negotiated changes to the energy supplement measure so that all existing categories of recipients, including those on Newstart and pensions, will continue to receive this modest supplement— (Time expired)

Debate interrupted.