Shalailah Medhora and agencies Sunday 22 February 2015

Coalition denies reports that PM suggested unilateral military campaign against Isis in Iraq, and plays down further revelations about pension changes

Tony Abbott speaking to media in Darwin. Photograph: Russell Millard/AAP

Senior members of the government have been rallying around prime minister Tony Abbott as more damaging leaks on defence and social security put his leadership back in focus.

News Corp papers on Saturday reported that Abbott contemplated unilaterally sending 3,500 Australian combat troops to Iraq without the backing of key allies.

Abbott on Saturday labelled the report incorrect and “fanciful”.

“I read an article in the paper this morning and I must say I thought it was absolutely fanciful and I rang the Chief of the Defence Force to ask him about it and he’s as mystified by it as I am,” Abbott said. “The idea there was a meeting in late November where I formally asked for advice and formally suggested that a large Australian force should go unilaterally to Iraq is wrong – just wrong.”

Senior members of the government were in damage control on Sunday.

“I was on the national security committee at the time, I can confirm what the prime minister said. It is fanciful,” social services minister Scott Morrison said.

“These stories are getting ridiculous. What’s next? Will they suggest the prime minister had some plan to put a manned space mission to Mars or the moon? It is getting silly. The notion this was put about is complete nonsense,” he said.

Agriculture minister Barnaby Joyce, a Nationals MP, said the report was “so out there it’s fanciful”.

He questioned the motive of the leakers and the reliability of the information provided to journalists.

“A story like that, even in the confines of the leadership group, I reckon we would have had a yarn about it. It never happened. So I’m flummoxed as to where this story emanated from,” Joyce said.

He said the question of leadership has been resolved.

“[The Australian people] don’t want a recurring soap opera, even though it’s fascinating to watch and it’s kind of intriguing and a little bit sordid. But it’s also rubbish and it doesn’t get the job done and we’re back to work doing our jobs.”

Greens leader Christine Milne said the report that Abbott wanted to send troops in unilaterally was indicative of Abbott’s “aggressive” leadership style.

“His leadership style has disabled the government, produced the most cruel and imbalanced budget in a generation, and now we know it also risks sending more and more Australian troops alone into dangerous quagmires.”

Abbott is also facing leaks in regards to social services, with a report in the Sunday Telegraph stating that the government’s budget razor gang shelved a secret plan to kick millionaires off the aged pension in favour of slashing the indexation of payments for every pensioner in Australia.

The razor gang was asked to consider slashing pension payments to wealthy seniors last year by changing the taper rate, the preferred option of the former minister for social services, Kevin Andrews.

This move would have reversed Howard-era changes that brought more high income seniors into the pension system.

Senior ministers had said they agonised over whether Tony Abbott would be accused of kicking seniors off the pension and breaking an election promise not to cut pensions, the report claims.

Instead, treasury proposed a change to the indexation arrangements for all pensioners, meaning the rate of increase would effectively be slowed, from 2017.

The change was announced in the May budget, with welfare groups and Labor arguing it would cut pensions by $80 a week within 10 years.

The treasurer, Joe Hockey, reportedly preferred treasury’s proposal because it would create larger structural savings and would not outwardly breach the government’s promise to protect pensions.

The Labor leader, Bill Shorten, said that Abbott had “lied to pensioners before the election”.

“Now every single pensioner has to pay the price for that lie.”

“It’s ridiculous that while the pension is being cut, some multinational corporations are paying little to no tax, and multi-millionaires are receiving new tax breaks from the government.’’

Morrison played down the story as “the great revelation that the government decided not to do something”.

“This is a story about something that happened over a year ago. I think this story has a use-by date,” Morrison said.

Senior ministers rally around Tony Abbott after more damaging leaks | Australia news | The Guardian