Federal Labor MPs have been instructed to use the looming parliamentary break to campaign against changes to the pension as both major parties seek to refine their pre-budget messages.
The opposition discussed the planned campaign, based on the slogan “don’t pocket our pension”, at a Labor caucus meeting on Tuesday – the final such gathering before parliament returns on 12 May for the Abbott government’s second budget.
At the same time, the treasurer, Joe Hockey, gave his colleagues a slideshow presentation about the government’s budget strategy at the Coalition’s party room meeting.
“We will get the budget back to surplus as soon as possible,” Hockey said, opting against giving a specific timetable after the government sent mixed messages last week about the pace of budget repair.
The opposition leader, Bill Shorten, told colleagues at the caucus meeting: “The failure of the last budget was not only because we said ‘no’; it was also because we won the argument in the community.”
Shorten also flagged the new campaign on proposed changes to the rate of increases to pensions. “We need to explain to pensioners that Tony Abbott is seeking to pocket their pension,” he said.
Shorten followed this up with a media conference at a seniors’ centre in Canberra, where he said the changes to pension indexation would erode its value by $80 a week in 10 years.
“We say on behalf of the pensioners of Australia, if the Liberal government can rule out cuts to foreign aid, why won’t they rule out cuts to the pension in the upcoming budget?” he asked.
The government wants to save money by linking age pension increases to the consumer price index (CPI) from 2017 – a shift from the existing arrangement of matching CPI or wages growth, depending on which was higher.
Abbott and the social services minister, Scott Morrison, have repeatedly accused Shorten of trying to scare pensioners about the yet-to-be-legislated proposal to change the indexation rate.
“This government will put pensions up twice a year, every year,” Abbott said during parliamentary question time on Tuesday.
“We have done the right thing by the pensioners of Australia, by scrapping the carbon tax that the leader of the opposition wants to bring back.”
In his presentation to the Coalition party room, Hockey said the focus of the next budget would be “to build a stronger Australian economy” with initiatives “focused on jobs, growth and opportunity”.
The budget would include a small business package, childcare reform, infrastructure investment, free trade agreements, and integrity in the tax and welfare systems, according to the presentation.
Hockey said the mid-year economic and fiscal outlook (Myefo) showed the nation was on track to return to surplus despite weaker global outlook, the historic iron ore price collapse, and the impact of the senate.
“All new spending will be offset by savings that are responsible and fair,” he said.
Essential poll results published on Tuesday suggested 51% of people disapproved of the job Hockey was doing as treasurer, while just 27% approved of his performance.
In a separate question on whom people would trust most to handle Australia’s economy, Hockey and his Labor counterpart, Chris Bowen, each mustered about 25% support. Nearly 50% of people did not select either of these two options.
Parliament is due to rise on Thursday for the pre-budget recess.
