Budget 09: pensioners assisted, but falls short for those most in need.

“CPSA welcomes the pension increase but while $32.50 a week extra will assist some, it falls well short of what’s needed for pensioners who have no other income but the pension. It’s also deeply disappointing to see that a $32.50 increase for singles and a $5 a week increase for couples (each) are deemed adequate for pensioners living in poverty” said Charmaine Crowe, Policy Coordinator.

 “Very low income pensioners will be underwhelmed by this budget, which fails to adequately supplement their incomes. The 1.5 million pensioners on the maximum rate of the pension are, and always have been, the group desperate for a boost.”

 "It is good to see a simplification of the system and greater flexibility, as well as the use of the Pensioner Living Cost Index.”

 “Raising the age pension age is unacceptable and will only increase poverty among people aged over 65 when it comes into effect. The average retirement age in the OECD is 65 and the savings achieved by raising the age that one can access the age pension is questionable.”

 Sole Parents

 “CPSA calls on the Government to pass the increase onto the 390,000 Sole Parent pensioners. The Sole Parent pension is legislatively linked to the Age and Disability Support Pensions, and Carer Payment, yet stands to be excluded from the pension increase.”

 “Most sole parents don’t own their home and half rent privately, often paying 40 to 50 percent of their income in rent. They and their children will receive nothing in this budget, despite being one of the most financially disadvantaged groups in Australia.”

 “This budget also fails to address the complex and unfair means-test arrangements for family assistance. For instance, income from child support is harshly means-tested, removing 50 cents in the dollar of Family Tax Benefit part A. On the other hand, if both parents live together, the means-test is not nearly as severe. Single parents will continue to be unfairly treated by the current system.”

 Superannuation

 “Cut-backs to superannuation tax concessions that mainly benefit high income earners are long overdue, but it could have gone much further. Only a small portion of very high income earners will be affected by this move, despite annual expenditure on superannuation concessions of around $25 billion. Low income earners will continue to see no concession on their compulsory superannuation contributions, while high income earners will still be able to greatly reduce their taxable income through salary sacrifice arrangements.”

 Aged Care

 "CPSA calls on the Federal Government to implement all the recommendations made by the Senate Inquiry into Residential and Community Aged Care. Nursing homes are running at 96 percent occupancy, many are understaffed and consequently struggle to provide quality care. Federal funding has remained largely unchanged despite strong evidence that serious restructuring of the system is required to meet aged care needs across the country.”

 Dental

 “The Federal Government has failed to deliver its Commonwealth Dental Health Program announced in last year’s budget, and there’s no clear push to improve the dismal state of public dental services in this budget. Consequently, the status quo that sees people on very low incomes forced into the expensive private system or wait years for public treatment, remains.”

 Health

 “It’s pleasing to see the private health insurance rebate means-tested. However, it could have been tighter given the strong take-up of private health insurance among high income earners, even before the rebate was introduced under Howard. Furthermore, the savings should be used to boost public dental services and Medicare."

Media contact: 0410 612 182

Charmaine Crowe
Policy Coordinator
Combined Pensioners and Superannuants Association (CPSA)
Level 9, 28 Foveaux Street Surry Hills NSW, 2010
Phone (02) 9281 3588
Mob 0410 612 182
Fax (02) 9281 9716