Abbott Government to debate key budget savings measures in Canberra

THOUGHT the Budget fallout was bad? Now Tony Abbott’s real fight begins. MPs are back in Canberra to debate the key savings measures.

THE Abbott government may have handed down its first budget but now the real fight begins.

MPs are back in Canberra ready to debate the key savings measures proposed nearly two weeks ago.

Labor has said it will wave through the deficit levy on those earning more than $180,000, but that is about the only good news for the Coalition.

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They will have to negotiate on other measures including the $7 GP co-payment and the reintroduction of fuel excise indexation.

There is staunch opposition to the increased fee to go and see the doctor, which is expected to be subject to compromise.

But Treasurer Joe Hockey is adamant the government won’t be walking away from it.

“If the independents and the Labor Party want to have a medical research future fund, there has to be a co-payment,” Mr Hockey told Sky News.

“You cannot have both.”

The Greens are willing to back the fuel excise hike, but want some of the revenue to go towards public transport instead of all to roads.

Labor is also not prepared to support pension changes, including the raising of the pension age to 70, as well as a plan to give universities the ability to set their own course fees.

Finance Minister Mathias Cormann this morning repeatedly described the budget as the one “Australia had to have”, after six years of Labor.

He issued a warning to the Opposition that if it doesn’t back its measures, harder decisions will have to be made in the future.

“The only alternative to reducing spending, so that we can live within our means, is to crank up taxes,” Senator Cormann told reporters at Parliament House.

“It would be highly reckless and irresponsible to crank up taxes to the extent necessary to fund Labor’s massive spending growth.”

He said the Coalition has put forward a budget designed to protect Australia’s “living standards” and it should be supported.

Education Minister Christopher Pyne said he had already discussed plans to deregulate universities with Clive Palmer, whose party’s support is crucial to getting the budget through the new Senate.

“Let’s not forget we’re only two weeks from the budget being handed down, so there is a long way to go,” Mr Pyne told ABC radio.

“And I’m sure all the ministers will get around to seeing the cross-benchers, the Greens and even the Labor Party.”

Mr Pyne said it was premature to outline negotiations on his tertiary education reforms, which will allow universities to increase student fees.

“The reality is though that the Senate will have a say on what passes and doesn’t pass and therefore we will sit down respectfully and courteously and negotiate with them,” he said.

Parliament will sit for four out of the next five weeks, before the new Senate sits after July 1.

Originally published as Abbott Government to debate key budget savings measures in Canberra