Coalition MPs have voiced concerns to Prime Minister Tony Abbott about budget changes to pensions and welfare payments.
The coalition's 90-minute joint party room meeting in Canberra on Tuesday devoted about 20 minutes to a discussion on the budget's social security savings.
Mr Abbott said the government had honoured its specific commitment, which was to raise the rate of indexation of payments made to former defence personnel through two old defence superannuation schemes.
However, MPs told the party room it would be difficult to sell this message given that the budget papers showed that from 2017/18 the government plans to index all Centrelink pensions, including service pensions paid to more than 140,000 ex-service personnel, in line with the consumer price index only.
CPI is generally lower than other indexation rates, creating savings of $65 million from veteran's pensions, the budget papers say.
One MP said he was receiving pushback from voters in his electorate about the budget changes.
Mr Abbott told the meeting that voters understood the government had to make tough decisions in its first budget.
Social Services Minister Kevin Andrews said that although there were savings in his portfolio, they were a "drop in the ocean" when compared with the $145 billion a year still being spent on social welfare.
He said a family on the minimum wage still received about $30,000 a year in tax-free benefits, while a family on an average wage received between $10,000 and $15,000.
Legislation for the social security changes was approved by the party room.
Another MP queried why the proposed deficit levy was imposed on income earners and not businesses.
Mr Abbott said the government wanted to ensure Australia's business tax rate was globally competitive.
In his opening address to the meeting, the prime minister said fairness and a fair go were the key values of the budget.
The tough measures in the budget would ensure that the government could be more generous in the future, he said.
Share
