Hollie Hughes (NSW, Liberal Party) Share this | Hansard source

Let's be very clear: the use of this current crisis, with its unprecedented health and economic challenges, should not be an opportunity for the Greens to propose irresponsible acts of economic vandalism. The federal government takes its responsibility to the taxpayer seriously. They expect us to use their funds sensibly and we're working hard to provide new ways to stimulate the economy, not through higher taxes or via a living wage but by getting people back to work. Our approach remains that we will invest in our economy in ways that will stimulate jobs for Australians. Whilst we have also funded a short-term lifeline to those workers that have been stood down, we will not be bankrupting our country with a welfare-for-all approach. We already have reports of workers rejecting opportunities to work casual shifts, because, in some cases, jobseeker payments are more lucrative.

So, in response to the reckless calls for a living wage, I would say this: our country has weathered the COVID-19 storm better than any other affected nation. We have achieved that by applying careful, deliberate and sensible measures to the health crisis, and we are approaching the re-ignition of our economy with the same principles. We will ensure that we experience a similarly measured and steady economic recovery. And we're not forgetting those in need. About one-third of the Commonwealth budget is spent on welfare. Accordingly, government has a responsibility to taxpayers to ensure that welfare is targeted and sustainable. Our approach to social welfare in Australia has been far from cavalier. Few countries have provided the strong safety net that we enjoy and Australia has one of the most targeted welfare systems in the world. It has been caring and focused on those who need it most. Jobseeker and youth allowance payments are taxpayer funded and they provide a safety net for people while they search for a job. Unlike in other countries, they're not linked to the recipient's contributions. They're increased twice a year every year, in line with CPI.

The jobseeker payment is a temporary, transitional support, with close to two-thirds of recipients expected to exit the payment system within a year. Almost every Australian who receives the jobseeker payment also receives supplementary payments on top of the base rate. Supplementary payments ensure that our system is targeted to those most in need. So, if you have specific circumstances that require extra support, then that's available. For example, if you have children, you'll likely receive family tax benefits, both A and B. The government also provides rent assistance, which is paid at up to $185 a fortnight, to help cover the costs of housing. Additionally, there's also the energy supplement, utility allowance, telephone allowance, carer allowance—and the list goes on. So, it's important to note that the jobseeker payment is not the only payment or support that job seekers receive. It's part of a broader, flexible social security system, comprising payments, services, concessions, child care, housing and employment services and associated programs.

The Morrison-led government is also supercharging our safety net to provide additional support to Australians throughout this extraordinary period—for those Australians doing it tough. We have instituted temporary measures to support individuals, families and businesses affected by the coronavirus. Those measures will also serve to boost confidence and domestic demand within our economy. Further help includes a coronavirus supplement of $550 per fortnight, two $750 economic support payments to existing payment recipients and concession card holders, expanding eligibility for and qualification for payments, making crisis payments available for people who need to self-isolate at home, and a reduction in the partner income test taper rate. These temporary measures will be in place until September this year. The safety net provided for the most vulnerable among us is particularly important and it is why the system must remain robust.

Clearly, social security and welfare expenditure are a large and important component of Commonwealth spending. Changes to the policy settings will only be carefully considered with regard to budget sustainability. The Morrison government is focused on growing the economy; getting more people into work; and delivering well-targeted social security, funded through a strong budget. That's why we've acted to support households and businesses and to address the significant economic consequences of the coronavirus. Our economic response totals $320 billion over the next four years to 2023-24 and will protect the economy by maintaining confidence, supporting investment and keeping people in jobs.

There has been no change in the government's view about the broader role of Australia's social security safety net. It should be remembered that, prior to the coronavirus crisis, we saw the proportion of working-age Australians reliant on welfare payments down to their lowest levels in more than 30 years, at just 13.5 per cent. Unemployment was down to 5.1 per cent, with more than 1.5 million jobs created. This is clear evidence that our welfare strategy net, coupled with our economic strategy, works. Evidence brought forward by the Productivity Commission has clearly shown that jobless households are among those most at risk of poverty. It should be noted that helping people out of poverty is a complex challenge, which is why the government has to be willing to try new initiatives and remove the barriers to work, and tackle disadvantage and intergenerational welfare dependence. This includes initiatives such as the $96 million Try, Test and Learn Fund, which embraces new ways to assist groups of people at risk of long-term welfare dependence. Those groups include young parents, students, at-risk youth, carers, working-age migrants and the older unemployed. It's a complex strategy to address groups at risk of long-term welfare dependence.

That's why the best thing the government can do for all Australians is to focus on investment to support businesses reopening and workers returning to their jobs. We have a mountain to climb on the other side of the coronavirus crisis, but we have a proven track record to achieve our goal of seeing Australia's economy recover. A crucial component of that recovery is a strong social security system. There will be more challenges ahead, and some industries will recover more quickly than others. We recognise that further assistance may be required. It's why government policy is informed through a variety of inputs, including the data collected by organisations such as the Australian Bureau of Statistics, the Department of Social Services, Services Australia and the Productivity Commission.

In responding, I think it's appropriate at this time to quote the member for Fenner, who in 2016 remarked on our welfare system. He wrote:

Quiz time. Of the roughly 200 nations in the world, which country's welfare state is best targeted to those in need?

If you answered 'Australia', then you're absolutely correct.

… Australia really does have a world-class social safety net.

…   …   …

Put simply, a dollar spent in the Australian social security system does more to reduce inequality than a dollar spent in any other welfare system in the world.

In conclusion, the Morrison government has no intention of throwing away Australia's economic recovery on a welfare-for-all approach. We will continue to demonstrate fiscal discipline, while adopting only those evidence based policies that will ensure our wonderful nation's speedy economic recovery.