Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Social Services, Senator Fifield. I refer to reports yesterday indicating the government will scrap its harsh cuts to families, pensioners and young jobseekers. Is the government planning to scrap its planned cut to family tax benefit part B families with children over the age of six and freeze family tax benefit payment rates for two years?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

Let me make clear to colleagues that the government remains committed to all of its social services budget measures. We are pleased, I might add, that the opposition has signalled support for savings measures around family tax benefit part A and family tax benefit part B. The opposition would be wise to get its facts straight rather than relying on newspaper reports.

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my left.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

Let me reiterate that the government, myself and the Minister for Social Services are absolutely committed to ensuring the sustainability of the welfare system. The opposition should indeed be supporting these common-sense measures that go some way to putting the budget back towards a path to being in balance.

Senator Cameron interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order Senator Cameron.

Honourable senators interjecting—

Order on both sides. I think we should give the minister a little bit more latitude as we can tell his voice is not at his finest.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

We on this side know that those opposite have an alternative. The alternative is to continue the trajectory, to continue the path of debt and deficit which they started when they were in government. I know colleagues have heard this number before but it warrants repeating—that is, the previous government had the nation on a path towards a gross debt of $667 billion. That is the plan and that remains the plan of those opposite.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I rise to ask a supplementary question. Is the government scrapping its plan to cut the indexation of the aged pension?

Honourable Senators:

Honourable senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my right and on my left.

Senator Wong interjecting—

Senator Cormann interjecting—

Senator Cormann and Senator Wong, the minister was asked a question. I think the minister should be entitled to answer.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I thought I heard Senator Ketter say that the government was intending to scrap indexation. That is the first time I have heard anyone say that. The government, after the next election, will be changing the basis upon which the age pension is indexed but indexed it will remain and increase it shall continue to do. In fact, it was only on Friday that the age pension went up again as a result of indexation, which is good news.

The great lie of those opposite is that this government will—

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President I rise on a point of order: relevance. There was a very simple question and if the minister did not hear it, it was: is the government scrapping its plan to cut the indexation of the age pension? The minister is not being directly relevant to that question.

Stephen Parry (President) Share this | Link to this | Hansard source

The minister has been directly relevant, and at the commencement of his answer he addressed the direct question asked by Senator Ketter. Minister, you have the call.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

As I said in answer to the first question, the government remains committed to all of its social services budget measures. I thought I had made that clear. Let me make equally clear that the pension has increased and will continue to increase and will continue to be indexed. The lie put forward by those opposite that this government is seeking to cut the pension is wrong. (Time expired)

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Is the government scrapping its plan to penalise young job seekers?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

This government is not seeking to penalise young job seekers. This government is endeavouring to make sure that younger Australians are either earning or learning. I would have thought that would be a policy objective that everyone in this place could embrace—that is, that, if a younger person is not earning then they should be studying and, if they are not studying, we want to see them in a position where they have a job. Every budget measure in relation to younger Australians that has been announced by the government has one objective in mind, and that is to do whatever we possibly can to help them into work.