The Coalition has made clear it is willing to compromise on its $6bn omnibus savings bill, saying it must pass parliament to reduce the deficit substantially.
Scott Morrison said on Monday the government had been talking with Labor, Greens and crossbenchers “in good faith” about the bill and voters expected the government to get a result.
But the treasurer also kept up pressure on Labor, warning that global ratings agencies were watching and had made it clear “it is a matter of getting things passed and actioned”.
“I met them with them last time in Canberra, and I will be meeting with them again in the next months overseas, and it will be a good story to tell to say we have our budget and we are getting support for savings measures in this parliament,” Morrison said.
“That is a test for the parliament, but we are engaging those discussions practically, in good faith, as I think the Australian people expect us to, to get a result.”
Debate will begin on the $6bn savings package this week, and the Coalition has been keeping pressure on Labor to fulfil its pledge to support the savings measures it made during the election campaign.
Labor has been pushing back, saying the omnibus bill introduced to parliament was not the same as the suite of savings measures it said it would support. Late last month, after the government was forced to correct a $100m error in the bill, Labor said its go-slow approach was justified.
The shadow cabinet will consider the matter before taking it to caucus for debate on Tuesday morning. Labor is concerned about a number of measures in the bill, including the Coalition’s desire to cut the $1.3bn clean energy supplement, which was introduced to cushion the household impact of the carbon tax.
If the $4.40-a-week energy supplement is abolished it will make the incomes of Newstart recipients go backwards in real terms. Homeless and social welfare groups have warned it could push thousands of people who are already on the brink of homelessness into poverty.
A draft Senate committee report on the omnibus bill was circulated on Monday morning, with dissenting reports or additional comments required by 11am on Tuesday, although it is understood the reporting date may be extended.
Chris Bowen, the shadow treasurer, told Guardian Australia that Labor would have more to say about its negotiations with the Coalition once it had gone through its “normal internal processes”.
“Labor advocated a fair approach to budget repair prior to the last election and is doing so after the election,” he said. “Labor has outlined $80bn in savings after the election.
“When it comes to the omnibus legislation, we said our approach will reflect the bottom line we took to the election.”
