Peta Donald reported this story on Tuesday, May 5, 2015 12:05:00

KIM LANDERS: A week from today, the guessing game about the federal budget will be over.



More generous childcare spending and a crackdown on the number of Australians receiving the age pension are certain to be major elements.



Even before the budget is handed down, the Social Services Minister Scott Morrison has been doing his best to sell the value of making these changes.



It's in an attempt to win enough Senate support to make the savings needed to pay for them.



From Canberra Peta Donald reports.



PETA DONALD: The Prime Minister and his Treasurer called the cameras to the ministerial wing of Parliament House this morning for an awkward picture opportunity.



JOE HOCKEY: We've got most of it nailed down, we're just now entering the data and go to print over the weekend.



TONY ABBOTT: Well, you've done a terrific job mate.



JOE HOCKEY: Thanks mate.



PETA DONALD: There've been some strategic leaks to some national newspapers today, with a few more details about the budget.



On the age pension, the Australian reports the value of assets older Australians can have before losing their part pension will be lowered, leaving an estimated 200,000 people to live on the income from their investments.



It's the trade off, reportedly, for dropping the unpopular move in last year's budget to index the pension to inflation, rather than wages, leaving pensioners worse off.



The Social Services Minister has done a round of interviews this morning and all but confirmed it.



SCOTT MORRISON: If you're not going to make changes to the indexation arrangements, now some 4 million Australians are affected by the indexation of pensions, and if you're going to not proceed with that, then obviously you need to go forward with something.



The Government is leaning forward into the task of the budget just as we always have been.



PETA DONALD: On childcare, the Financial Review has a story that even those on high incomes will still get a 50 per cent taxpayer subsidy for their childcare, with even more generous subsidies for low and middle income earners.



It's against the recommendation of the Productivity Commission.



SCOTT MORRISON: We don't consider it a welfare payment.



We consider it an employment participation payment and therefore I think there's a very different test.



Now, the Productivity Commission, when they put forward their recommendations, they were constrained because they were trying to keep it within a particular budget envelope.



Now, we're saying we're prepared to invest more in this area for workforce outcomes, participation outcomes, economic growth outcomes, and to do that we've got offsetting savings which we've had on the table for some time.



PETA DONALD: Labor leader Bill Shorten will not be drawn on whether it will offer its support.



BILL SHORTEN: Pensioners don't trust Tony Abbott with their pension, this is the real problem in Australia.



Tony Abbott's treatment of pensioners in the last 12 months has nothing short of a national disgrace.



PETA DONALD: He wants more details before playing his hand.



BILL SHORTEN: Well I don't deal with the hypotheticals.



I do know based on the track record, if Tony Abbott says he's coming to help a pensioner, you want to start running in the opposite direction.



PETA DONALD: The Government may need to look to the Greens or the crossbench for support.



Scott Morrison has been negotiating over the pension taper rate with the independent Senator Nick Xenophon.



NICK XENOPHONE: When you have the Greens, who have discussed the issue of having a more realistic taper rate, they've been saying that for some time, then this is an issue that I think that can't be seen as part of the left/right divide, it seems to be a sensible way of going forward.



So I hope that Scott Morrison goes down this path, it depends on the precise taper rate, it depends on the actual asset threshold, but I think it's worth looking at.



PETA DONALD: The Greens have been sounding supportive to date, but the families spokeswoman, Rachel Siewert, says the Government should not count on automatic support from the Greens.



RACHEL SIEWERT: No defiantly not, we'll be referring this; my inclination that I'll take the party room is to refer any changes that the Government brings to the budget to a committee, because we need to look at the impact of the changes, particularly if the Government wants this passed before they carry out a retirement income review.



So they need to be looked at to see if there are unintended consequences, just who will be impacted by these changes, and before we're prepared to say yes we would support them.



KIM LANDERS: Greens Senator Rachel Siewert ending that report by Peter Donald.