Scott Morrison frustrated by Parliament’s refusal to claw back billions in welfare payments, taxes could be raised
EXCLUSIVE: In an interview with The Daily Telegraph, Treasurer Scott Morrison unleashed his frustration at the Parliament’s refusal to claw back $5.6 billion in welfare payments.
NSW
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TREASURER Scott Morrison has warned he will be forced to raise taxes if Labor and Nick Xenophon block billions of dollars in welfare cuts amid grave concerns for the country’s future credit rating.
In an interview with The Daily Telegraph, Mr Morrison unleashed his frustration at the Parliament’s refusal to claw back $5.6 billion in welfare payments from those who do not qualify for it, saying the splurge on welfare cannot continue.
Mr Morrison said it was a “complete lie” that the Government would not be funding the National Disability Insurance Scheme, instead issuing a blunt warning that there would be higher taxes or higher debt to pay for it.
“We’re committed to it, but you’ve got to fund it,” he said. “If you don’t fund it by getting welfare under control, you’ve got two other options, increase taxes or increase debt.”
His frustration building at the total of $13.6 billion in budget measures being blocked, Mr Morrison said Labor and Mr Xenophon’s move on the welfare cuts was irresponsible when credit agencies had already put Australia on notice.
“If they can’t pass these savings, what savings can they pass? The answer to that is they don’t wish to pass savings,” he said.
“They are demanding that we actually stop trying to get expenditure under control. Labor is demanding that the government spend more and more on welfare.”
The Turnbull Government announced an omnibus bill last week that cut $4.7 billion in Family Tax Benefit supplements along with additional welfare cuts such as ending carbon tax compensation for future welfare recipients.
After discussions with the crossbench, there were additional payments for families as well.
Paid parental leave would increase from 18 to 20 weeks and the Family Tax benefit would increase by $20 a fortnight.
Government modelling shows families will be up to $7000 a year better off under their new childcare changes and family tax benefit changes.
For a single parent family on $80,000 where two children under the age of six are in long-day care for five days a week at $100 a day, they would be $7051 better-off than they are currently.
On top of this, they would still receive $10,053 in annual Family Tax Benefit payments.
For a single parent family on $50,000 a year, where two children under the age of six are in long-day care for two days a week, they would be $1372 better off by 2018-19, while receiving $15,337 in Family Tax benefits.
Mr Morrison said it was “disappointing” that despite holding crossbench discussions, there was still no support for the cuts. “We’ve been working with the Xenophon team for years ... and we’ve done that in good faith and at the end of the day though, people who are voting have to make a decision.”
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