Abbott-backed welfare cuts were discussed, Eric Abetz admits

Eric Abetz has all but confirmed a cabinet leak suggesting the Abbott government considered cutting welfare to under-30s.

Former Prime Minister Tony Abbott. Picture: Kym Smith.

Liberal backbencher Eric Abetz has all but confirmed a cabinet leak suggesting the Abbott government considered cutting off welfare to under-30s.

Mr Abbott, then treasurer Joe Hockey and Finance Minister Mathias Cormann considered three means of limiting income support to under-30s, but the plan was ultimately quashed by then social services minister and Abbott factional ally Kevin Andrews, according to cabinet documents reportedly obtained by the ABC.

Mr Andrews reportedly responded to a request for methods of cracking down on young “job snobs” with three options, namely banning everyone under 30 from income support, banning young people in areas where there was work available, or limiting support to young people with a solid work history.

The proposal could have saved as much as $9 billion over four years.

Senator Abetz said he could confirm that the government and cabinet “considered a suite of suggestions that were put before us”.

“Like any good government, the suite of options go from one extreme to the other, and it would be fair to say we were dealing, and I believe we still are dealing, with a budget emergency with our ever-increasing indebtedness which the next generation will need to pay back,” Senator Abetz told Sky News.

“In considering the welfare budget, it was considered what were the range of options, and just because a submission is put to the cabinet or the expenditure review committee does not make it government policy, and it didn’t become a government policy.

Asked whether “job snobs”, or young people who prefer to receive welfare payments rather than working in jobs they see as beneath them existed, Senator Abetz said that in some quarters they did, and in others they did not.

“What you’ve got to do is have a balanced policy which recognises that our welfare system should be a safety net and not a hammock,” he said.

“I think most Australians are aware of some, not all, some welfare recipients that actually sadly use the welfare system as a hammock, as opposed to a safety net, and as a good, competent government looking after the welfare of those individuals as well as the taxpayers, it makes good sense that you look at policy options to encourage people into work, into self-reliance and relieve the burden on their fellow Australians, who are paying taxes, so those options need to be considered, the question is where do you draw the line, how do you balance it up.”

Welfare leak ‘designed for Abbott pain’: Albanese

Labor frontbencher Anthony Albanese said the leak was designed to cause pain to the former prime minister as part of the “ongoing warfare” within the Liberal Party.

“What is interesting is why has it come out now?” he told ABC radio.

“A cabinet document being leaked in such a manner can only be designed to cause pain to Tony Abbott, and it’s a part of the ongoing warfare that’s occurring within the Liberal Party at the top.”

Mr Albanese said the Abbott government had “tried on” a range of harsh and punitive measures in the 2014 budget.

“It was a budget based upon division and vilifying some of the less well off in our society,” he said.

“It’s not surprising that some people pushed back against it, and good on the fact that Kevin Andrews pushed against this.

“The problem that the government had is clearly people including the then prime minister Tony Abbott and the then treasurer Joe Hockey, it would appear, thought that it was OK to put young people in a position whereby they had no income support whatsoever.”

Mr Albanese said the proposal was more than just a call for ideas.

“This was looking at options to essentially take all income support off young people,” he said.

“They didn’t understand that investing in young people is not just good for themselves and their contribution they’re able to make.

“It’s good for the economy, and we did see in that budget massive cuts to education, we’ve continued to see a failure to support training and skilling that’s required for the jobs of the future, and that approach is really consistent with the ideology that was behind the 2014 budget.”

Shadow Minister for Infrastructure, Transport and Cities Anthony Albanese. Picture: AAP.

Mr Andrews also flagged an option to reduce the ‘harshness’ of the scheme by rolling out an income managed basics card to help cover some costs.

The leaked cabinet document states: “This proposal may receive support from those in the community who have little sympathy for job snobs.”

The document shows Mr Andrews successfully argued against the measures, despite his factional links to Mr Abbott and then employment minister Eric Abetz.

In a draft letter copied to Mr Abbott, Mr Abetz and then human services minister Marise Payne, Mr Andrews said he had significant concerns and flagged that there would be blowback to the idea.

“This is a fundamental change to Australia’s universal social security system. It is not clear that there is a strong evidence base for this approach,” Mr Andrews wrote.

“The cabinet document is reportedly marked, ‘protected’, ‘sensitive’ and ‘cabinet in confidence’.

Mr Andrews objections were evidently upheld, and the idea did not appear in the 2014 budget.

Senators Cormann and Payne declined to comment.

The ABC sought comment from Mr Andrews, Mr Abbott, Mr Hockey and Senator Abetz.

Then education minister Christopher Pyne declined to comment on the story this morning.

“This is a four-year-old speculative story. Nothing came of it, and quite frankly it’s not worth commenting on,” the Defence Industry Minister told ABC radio.