AUSTRALIA: Government guarantees carer, seniors bonuses

MELBOURNE (The Age), March 12, 2008: The federal government has decided to end the angst for pensioners and carers, guaranteeing that they will get their one-off bonuses this year. Axing the $1,600 payment for carers and $500 bonus for elderly Australians would have saved about $1.7 billion this year.But news of its scrapping sparked an outcry, with angry seniors and carers bombarding MPs' offices with phone calls and emails for the past five days. The government has yet to decide whether to continue with lump sum payments or incorporate them into regular welfare payments in future budgets. "We decided to end the angst, if you like, and the concern in the community, by guaranteeing all of those bonuses for this year," Treasurer Wayne Swan told ABC radio. "But I think making the most important commitment (is) to look at this and make it sustainable in the long-term." Mr Swan said all bonuses would be paid up front this year and carers would not be $1 worse off. "We have also made it very clear that as we proceed into the future, we want to put in place a more sustainable system for the future and the best interests of carers," he said. Carers Australia said welfare recipients were relieved but still not satisfied the government was providing enough help. "We are obviously pleased that Mr Rudd has given carers certainty on this issue," CEO Joan Hughes said in a statement. But in a practical sense, it doesn't leave carers any better off than they were before all this began." Ms Hughes said the "turmoil" highlighted the numerous deficiencies in the carers' support system. "The clear message that has come out of this episode is that urgent reform is needed to support carers financially. The current system is confusing and inadequate." Ms Hughes said people who received the bonus, as well as the Carer Payment and the Carer Allowance, already lived week to week with an income about $200 below the minimum wage. "It is astonishing that it was ever considered to reduce carers' income further in order to subsidise what are possibly going to be the most unpopular tax cuts in history." Ms Hughes and colleague Pam Webster are due to meet Community Services Minister Jenny Macklin at Parliament House in Canberra on Wednesday. © 2008 AAP Copyright © 2008. The Age Company Ltd.