AUSTRALIA: Government releases pension discussion paper

SYDNEY (ABC Net - The World Today), August 11, 2008 By Sabra Lane ELEANOR HALL: To Canberra now and the Federal Government has released a discussion paper this morning, on the aged and disability pensions and the carers' payment. The paper shows that many other comparable nations pay higher amounts to their aged pensioners. And the Minister for Family and Community Services, Jenny Macklin, says a committee will travel around the country to hear first-hand from pensioners and carers. In Canberra, Sabra Lane reports. SABRA LANE: Sixty-nine-year-old South Australian pensioner Barb, who doesn't want to reveal her surname, is grateful to receive the pension and live in public housing. But she says life's pretty tough on the single age pension. BARB: I'm very frugal; I was brought up in the country. I don't buy takeaways, my daughter took me out for takeaway on Mother's day and I would think that's probably the first takeaway I've had in a long time. I don't live a sort of…I have a car which I manage to run and that's important to me because it gives me my independence. SABRA LANE: Single pensioners receive $273 a week. This year, the price of Petrol's jumped; so too groceries and from next year Barb says, the local water authority's written to tell her she'll have to pay for every drop of water used and not just the excess. And she believes those costs of living pressures have a greater impact on single pensioners than on couples or families. BARB: Because you're old you shouldn't have to reduce your standard of living for all of us. SABRA LANE: The pension is part of the Federal Government's taxation review. This morning, Families and Community Services Minister Jenny Macklin has released a discussion paper on the pension, carers' payments and the disability pensions. JENNY MACKLIN: There are more than two million older Australians, almost 80 per cent of the population aged over 65 are either dependent on the age pension completely or are on a part age pension. More than half of those have very, very low incomes in addition to their pension of less than $20 a week. So the vast majority of older Australians are on the pension and a very, very significant number of those people have very small additional amounts of private income as well as their pension. SABRA LANE: The secretary of the Department for Families and Community services will be part of the pension review; Dr Jeff Harmer will also head a reference group which will give advice to the Government on what level the pension should be. Pensioners, academics and interest groups will be part of that committee. Public hearings will be held in capital cities, and in three regional centres: Wangaratta, Newcastle and Rockhampton to hear first-hand from those struggling to make ends meet. Minister Macklin says the report will be finished by March next year, she says she knows those on welfare are struggling, as the discussion paper points out; most pensioners don't have nest eggs. JENNY MACKLIN: Most pensioners also have very low levels of assets, in fact 30 per cent report having bank balances of less than a thousand dollars. Just one other very important finding from this background paper shows that many, many pensioners are either on the Disability Support Pension or the Carer Payment or the aged pension for an extended period of time. SABRA LANE: On average, those taking the aged pension rely on that welfare payment for 13 years. Again, Jenny Macklin. JENNY MACKLIN: What this demonstrates to us is that it's very important that we get the maximum rate of income support at a level that enables people to have a reasonable standard of living. What it also says is for those who are under the retirement age, we need to get the system right to both encourage and support people to work where it is possible that they can. SABRA LANE: The Minister says the review will examine the carer and pensioner bonuses and whether they should be incorporated into regular payments rather than lump-sums. JENNY MACKLIN: Different people have different views about that, that's the purpose of Dr Hamer having a reference group, of doing the consultations, of actually making assessments of peoples, the pressures that people are under on a fortnightly basis. SABRA LANE: The Opposition says it's about time the Government focused on pensioners and carers, shadow treasurer, Malcolm Turnbull. MALCOLM TURNBULL: The Rudd Government had the opportunity to improve the lot of pensioners in the last budget and they chose not to. The pensioners were the forgotten people of the Rudd Government's first budget. ELEANOR HALL: And that's the Coalition's treasury spokesman Malcolm Turnbull ending that report by Sabra Lane in Canberra. © 2008 ABC