Treasurer Joe Hockey faced tough questioning from members of the public in the western Sydney suburb of Penrith as he publically defended his controversial first budget.
It comes after a week in which thousands of protesters voiced their anger over federal cuts to health, education and welfare.
The only panel member on the ABC's Q&A program, Mr Hockey denied the Coalition broke a promise to voters over the $7 Medicare co-payment.
"We didn't say we wouldn't raise any taxes. That's absurd because we went to the last election promising to introduce a levy for the paid parental leave scheme," Mr Hockey said.
"We said emphatically that the taxes would be lower under us than they are under Labor and if you have a look at the Budget Papers it actually shows that the taxes are lower under us than if Labor were re-elected."
But when pressed on whether the co-payment was a new tax, Mr Hockey said: "It's a payment. You can call it a tax".
He said a rise in the fuel excise would also be a tax increase.
Hockey grilled on plan to uncap uni fees
Mr Hockey faced repeated questions about the plan to uncap university fees amid claims the cost of university degrees could increase by 30 per cent.
When asked how he related to the challenges of Australians facing the increased cost of university degrees under the planned changes, Mr Hockey said he faced similar challenges during his childhood.
"I grew up in a small business family. My father came as a migrant from Palestine with no money. They set up delicatessen and worked damn hard to give their children an education. And I was the first of all my family to go to a private school that was well known," he said.
"My father never attended a game of sport on a Saturday; and he and mum worked many Saturdays and Sundays to try and get the business going. So I understand how hard it is."
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