Matt O'Sullivan (WA, Liberal Party) Share this | Hansard source

No-one is saying that it's easy to get by without a job, which is why the Morrison government is squarely focused on job creation to help working age Australians gain financial independence. We're delivering results with more than 1.3 million jobs created since we were elected, which is about 240,000 a year—compared to just 155,000 a year, on average, under Labor.

Newstart is a taxpayer funded allowance that provides a safety net for people while they look for a job, and has already increased twice a year every year in line with CPI. The government's approach to assisting people on Newstart is focused on our success in getting people off welfare payments and into a job. Around two-thirds of those granted Newstart get off the payment within 12 months. Everyone who receives Newstart is eligible for some form of additional assistance from the welfare system. Ninety-nine per cent of Newstart allowance recipients receive an additional supplementary payment such as rental assistance, parenting payments or the energy supplement, which works out to an average extra $130 a fortnight on top of the $555 base rate.

Welfare cost more than $172 billion in 2018-19, representing more than $1 in $3, or 35 per cent of all spending by the government. It is the responsibility of government to ensure our social security and welfare systems are sustainable into the future, so that it continues to provide support for those most in need.

As the PM said last year, 'If the government had the money to raise Newstart I reckon I would be doing it for pensioners first.'

The Labor Party played a cruel joke in the lead-up to the election by claiming that they would review the rate of Newstart but did not budget for any of its increase.

Australia has a strong safety net for those that need it most. Few countries provide the strong safety net that we have in Australia. The welfare system is funded by taxpayers and needs to be managed responsibly. The responsibility extends to taxpayers who are paying for our welfare bill now and to the future generations who will have to meet the cost of the system in the decades to come. This means the system must be fair and sustainable.

The Morrison government recognises that there are times when people need a safety net to help them when they're down on their luck. In Australia, we have a very comprehensive and targeted welfare system that is there to assist those who are doing it tough. At the same time, we have to be fair to taxpayers, as well as to welfare recipients, because we have to understand that every dollar that is spent on welfare is a contribution from the taxpayer. There is no magic pudding. The money has to come from somewhere. We want a fair go for taxpayers. That's why our welfare system needs to be targeted to those who need it; not those who would like to have it. It needs to be targeted, sustainable and in line with community expectations.

In order to help people who are doing it tough in the future it's the responsibility of the government to ensure that the welfare system is sustainable. With the Morrison government's economic management it is important to ensure that we have a social safety net that we can rely on, so it continues to provide the support to those that need it the most and who will rely on into the future. The government wants a welfare system that supports our most vulnerable and encourages those who are capable of work or study to do so. Most importantly, it reduces intergenerational welfare dependency. We also need to ensure that the system is sustainable into the future. The wellbeing of vulnerable Australians remains a high priority for the Morrison government. Around $29 billion is invested each year to support families through family tax benefit, childcare payments and paid parental leave. Over $827 million is invested in the 2019-20 year through the Department of Social Services' Families and Communities Program to support vulnerable families, improve children's wellbeing, reduce the cost of family breakdown, improve financial capability and literacy, and build strong and resilient communities. The Department of Social Services provides around $2 billion to more than 8,000 organisations that are specifically set up to help our most vulnerable Australians.

The Morrison government's focus on a strong economy is working. We're delivering the job opportunities Australians need. This government has seen the largest increase in jobs since the global financial crisis, with more than 1.3 million jobs since we were elected. The proportion of Australians receiving working-age income support payments has fallen to its lowest level in 30 years, at 14.3 per cent. There were 230,000 fewer working-age recipients on income support payments in June 2018, compared to June 2014. More than 100,000 young Australians between the ages of 15 and 24 found jobs—that is the highest number in Australia's history. To put that into perspective, 52,000 jobs were lost in the same category between November 2007 and August 2013. This means tax relief for 10 million taxpayers.

Those opposite played a cruel joke on Australians in the lead-up to the election, claiming that they would review the rate of Newstart but doing nothing to budget for its increase. Labor voted in the Senate against the motion to increase the rate of Newstart as recently as 4 July 2019. Prior to the election, their policy was a review, and then a review, with no 'view' of lowering the rate. Labor have not been clear in what they offer to people trying to get off welfare and into work. When it comes to welfare spending, the difference between the coalition and Labor is that only the coalition is able to maintain the sustainability of the welfare system. When Labor were in office, the rate of increase in spending on welfare far outpaced the rate of growth in tax revenue. Labor's position on this important welfare payment changes almost every day. This flip-flopping started in the lead-up to the election, when Labor claimed they would review the rate of Newstart, but, as I said, did nothing to budget for its increase.

No-one is saying that it would be easy to live on Newstart. The government understands this. It understands that Australians are doing it tough. Newstart is a safety net. It's not meant to be a replacement of salary. The focus of Newstart, combined with our government's additional supports and programs, is to help people who find themselves on hard times, to support them to get back into the workforce. Whether it's Work for the Dole or Youth Jobs PaTH—which is a fantastic program that all employers across Australia should think about getting on board with, because it's an opportunity for them to connect with young people that just want to have a crack and get entrance into the workplace. We're helping Australians to get a job so that they can earn a wage that creates a better future for them and their families. The Household Income and Labour Dynamics in Australia Survey shows little net change in income inequality between 2001 and 2017. Indeed, it has come down slightly under the coalition from 0.304 to 0.302, with a lower number indicating lower levels of inequality. The survey shows that the proportion of the population below the relative poverty line has fluctuated over time but the broad trend has been downwards.

In conclusion, as I said in my first speech last night, I've had a long experience working with some of Australia's most vulnerable people and helping them find work. I've never been unemployed for a great period of time, so it's true I haven't walked in the shoes myself, but I've walked alongside a lot of people who have. I'm really committed to improving the system that helps people get off welfare and into work. It's one of the things that I bring into this place, and I'll be looking forward to working with the government to ensure that we do what we can to get more people off welfare and into work.