Welfare cuts collapse in senate - gov humiliated

It was always going to happen. With the outrage this gov ignited over it's cruel, out of touch, ideological budget, and that outrage turning into direct action from the Australian people. Ideology lost. Maniacal capitalism lost. Australia won. The gov is humiliated.

The proposed welfare cuts have bitten the dust in the senate. The gov finally got it, that "non" means "no". The only way they can get any of the changes through is to take out all the shit that nobody wants; split the bill up into little pieces to get through what will pass.

Abbott remains stoic however, continuing to say that the gov supports all of it. Shame that little thing called democracy got in the way eh?

The federal government has beaten a tactical retreat on welfare cuts in its budget in order to ring-fence nearly $4 billion in savings after it became clear it would lose its entire package of welfare changes worth in excess of $9 billion to the bottom line. 

In closed-door talks with the opposition on Wednesday, the ministers in charge of the welfare reform package, finally conceded they cannot find the numbers and will need to split the omnibus legislation up to secure those aspects for which there is Labor or crossbench support - that is, proposed changes to the Family Tax Benefit (part B) threshold through lowering the upper income limit of the primary earner to $100,000 rather the current $150,000 cutoff. 

In direct negotiations with the opposition's welfare spokeswoman, Jenny Macklin, on Wednesday, the relevant ministers, Social Services Minister Kevin Andrews and Assistant Social Services Minister Mitch Fifield, indicated they would divide the legislation, allowing those parts with opposition and/or Greens support to go forward while the rest would sit in abeyance. 

These include less popular measures such as the proposed GP co-payment, the lowering of indexation rates for the aged pension after 2017, and university funding cuts. Read more