|
|||
|
|||
|
|
Bonus years |
Single |
Partnered (each) |
1 year |
$1,392.60 |
$1,163.10 |
2 years |
$5,570.40 |
$4,652.40 |
3 years |
$12,533.30 |
$10,467.90 |
4 years |
$22,281.50 |
$18,609.60 |
5 years |
$34,814.80 |
$29,077.50 |
Payment rates appear as a guide only and are effective from 20 March 2009.
The amount of bonus a person gets depends on:
About 8000 to 9000 Age Pension claimants were registered for the PBS in 2006. The PBS bonuses paid have been 1365 in 1999-00, 3007 in 2000-01, 4535 in 2001-02, 5646 in 2002-03, 7407 in 2003-04 and 5689 in 2004-05.[22] This is certainly not the anticipated 35 000 a year originally envisioned when the PBS was introduced.
Certainly the numbers of persons accessing the PBS have not been as originally anticipated. Those able to access the PBS are those with significant on-going work capability past Age Pension age and therefore those with greater access to other income sources than many other Age Pension claimants who are not able to access employment income. The other measure in Schedule 7 of the Bill – the Work Bonus, which is to apply a new and different income test in respect of employment income, will still encourage employment and self-support beyond Age Pension age. The Work Bonus will allow half of employment income earned up to $500 a fortnight to be disregarded under the income test.
The increase in the income test taper rate from 40 per cent to 50 per cent necessitates the inclusion in the Bill of arrangements to ensure that existing part-rate pensioners do not suffer a rate reduction. Part-rate pensioners will only be subjected to the new taper rate (50 per cent) only when their pension rate is higher than their rate under the current 40 per cent taper. This is achieved by the fact that with indexation, over time the pension rate increases and eventually the increased rate overcomes the proposed new higher taper rate (50 per cent). The proposed new 50 per cent taper rate on the income test will not be applied to a person until their pension calculated under the current arrangements (40 oper cent taper) and the current maximum rates exceeds the new pension rate calculation (50 per cent taper) plus $10.10 per fortnight for a single person and $5.05 per fortnight for a partnered person.
This is quite generous and probably included so part-rate pensioners are not disadvantaged by the increased 50 per cent taper rate.
In the 2009-10 Budget, the government announced its intention to increase the qualifying age for the age pension for men and women from age 65 to age 67, to be phased in from 2017 to 2023.
The Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin, has described this change as ensuring that the age pension age reflects ‘the significant improvements in life expectancy that have occurred since the age pension was first introduced in 1909’.[23] The age pension qualifying age has been 65 since its inception in 1909.[24] Life expectancy at birth in 1901–10 for males was 55.2 years; and for females, 58.8 years.[25] Life expectancy at birth in 2005–07 was for males, 79 years; and for females, 83.7 years.[26]
Table 1 below outlines how the proposed Australian changes will affect different age groups.Table 1: Proposed increase in the age pension age in Australia: who will be affected[27]
Date |
New age pension age |
Affects people born |
When group reaches new age pension age |
1 July 2017 |
65 years & 6 months |
1 July 1952 to 31 December 1953 |
1 January 2018 to 30 June 2019 |
1 July 2019 |
66 years |
1 January 1954 to 30 June 1955 |
1 January 2020 to 30 June 2021 |
1 July 2021 |
66 years & 6 months |
1 July 1955 to 31 December 1956 |
1 January 2022 to 30 June 2023 |
1 July 2023 |
67 years |
From 1 January 1957 |
From 1 January 2024 |
The main rationale for this change appears to relate to the objective of securing the long-term sustainability of the age pension.[28] According to the Minister, it ‘will allow the government to respond to the long-term cost of our demographic challenges’.[29]
As can be seen from the following table (based on ABS projections), the percentage of the population aged 65 years and over will increase substantially over the next century, almost doubling by 2056.[30]
Table 2: projected Australian population aged 65 years and over, 2007 to 2101
Year |
Total population aged over 65 |
Proportion of population over 65 |
2007 |
2.8 million |
13 per cent |
2026 |
5.1 to 5.3 million |
18 to 20 per cent |
2056 |
7.8 to 10.4 million |
23 to 25 per cent |
2101 |
9.3 to 17.1 million |
25 to 28 per cent |
As noted by the ABS, ‘among other considerations such as health and housing services, growth in this age group has particular implications for retirement income planning’.[31]
In response to similar demographic pressures, other countries have recently announced increases in their age pension qualifying age. In the United Kingdom (UK), the Parliament is currently debating pension reforms presented in a 2006 White Paper. Reforms include taking into account increasing longevity and encouraging extended working lives. It is proposed that the State Pension age will rise gradually from age 65 (men and women) to age 68 by 2044. In the United States the qualifying age is being incrementally raised to age 67 by 2027. In Germany, between 2012 and 2029, the normal pensionable age will rise from age 65 to age 67 with eligibility requiring at least 5 years contributions from employment income into their personal pension fund amount. In Germany for persons born after 1964, the pensionable age is 67. From 2012, the full pension is payable at 65 with at least 45 years contributions to the individual’s pension fund amount.
There are mixed views on the idea of increasing the age pension qualifying age. On the one hand, both the Harmer Pension Review and the Henry review of Australia’s future tax system recommended gradually increasing the Age Pension (respectively, by 2 to 4 years and 2 years).[32] Both the Harmer and Henry reviews also recommended bringing the preservation age for superannuation into alignment with the Age Pension age.[33] (Note that the government has since ruled out this option.)[34]
The opposition has indicated that they support the change, with the Shadow Minister for Families, Housing, Community Services and Indigenous Affairs, Tony Abbott, stating that ‘a strong case can be made for raising the pension age’.[35] A range of other interest groups and commentators have also indicated that there is a reasonably strong rationale for increasing the age pension qualifying age. This includes National Seniors Australia, an organisation representing Australians aged 50 years and over, who has previously argued for the pension age to be raised gradually, potentially to 75 years by 2020.[36]
On the other hand, some other interest groups and commentators have raised concerns in relation to increasing the qualifying age for the pension age. These have included unions representing workers in physically demanding industries. The main concern raised in relation to the change is that some people are less able to continue working than others—either through incapacity (particularly those in manual occupations), caring responsibilities or lack of jobs for mature workers.[37] While some will be able to access DSP (paid at the same rate as the age pension), others may be forced to access Newstart (paid at a substantially lower rate than the pension).[38] Further, it has been argued that forcing people to work longer before accessing the pension will actually add to the costs faced by governments and employers as a result of increased injuries and illness.[39]
Other arguments that have been raised against increased the age pension qualifying age both in Australia and overseas include:
Notwithstanding the merits of some or all of the concerns raised above, it may be that the significant increase in life expectancy over the previous century means there remains a reasonably strong case to increase the qualifying age for the Age Pension. Nevertheless, concerns raised by critics of the change highlight a number of important issues, including the fairness of retirement policy (including retirement incomes policy), broader income support policy and issues related to mature age employment. Indeed, as COTA over 50s, an organisation representing Australia’s seniors, argued in its submission to the Community Affairs Legislation Committee inquiry into this bill, ‘COTA support for increasing the pension age depends on government redoubling efforts to address mature age unemployment and age discrimination in the workforce, and introducing measures to address unemployment among mature age workers’.[45]
The Government announced a modification to the proposals to amend the income test applied for the CSHC in the 2009-10 Budget.[46] This proposal is a modification of an original proposal to modify the CSHC income test presented in the 2008-09 Budget.[47] In the 2008-09 Budget proposal, the Government proposed to modify the CSHC income test by adding two new elements to the definition of adjusted taxable income.
The two extra elements then proposed to be added back into adjusted taxable income were:
The legislation that presented this amendment to the SSA was the Social Security and Veterans' Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009.[48] This Bill was passed by the House of Representatives on 17 March 2009. The Bill was debated in the Senate, with the last day of the second reading debate on 20 March 2003. However, the Bill was discharged from the Senate notice paper on 17 June 2009.
The modified proposal to the definition of income for the CSHC income test presented in Schedule 13 of this Bill is to only add back into adjusted taxable income amounts of employment income salary sacrificed into superannuation. Perhaps the Government considers this ‘watered down’ modification to the CSHC adjusted taxable income test will be more palatable to the non-government parties in the Parliament?
The estimated savings for Schedule 13 presented with this Bill are $9.6 million in 2009-10, $11.4 million in 2010-11 and $13.3 million in 2011-12 and $14.2 million in 2012-13. This is a total of $48.5 million over four years.[49]
The CSHC is available to persons over Age Pension (AP) age[50] who are not in receipt of an income support payment and whose adjusted taxable income is below certain limits. The main income support payments for persons over Age Pension age are the Age Pension, Age Service Pension and Partner Service Pension. Persons over Age Pension age may also be in receipt of DSP or Special Benefit, in cases where they do not meet the 10 year residence requirement for the Age Pension.
The current yearly income test limits for the CSHC are:
The income limits for the CSHC are not indexed in any way and are only increased when a government sees the need to do so.
The current income test for the CSHC uses ‘adjusted taxable income’, which refers to net taxable income with three additional elements:
The CSHC provides access to concessional pharmaceuticals under the Pharmaceutical Benefits Scheme (PhBS). The CSHC may also provide:
Retired aged persons on a government income support payment are issued with a Pensioner Concession Card (PCC) or a Health Care Card (HCC), which also provide access to concessional pharmaceuticals under the PhBS.
The CSHC also provides access to the:
As at June 2008 there were 278 378 CSHC holders.[51]
The original proposal presented in the 2008-09 Budget to amend the CSHC income test was aimed at:
ensuring that, in applying the existing income test, all income received by seniors — whether from superannuation or another source such as a managed fund or interest from a bank account, is treated in the same way.[52]
The group of retired aged persons who do not get any benefit from this revised CSHC income test proposal are those self-funded retirees aged over Age Pension age who are working and are also salary sacrificing employment income into superannuation. This group would be smaller than the group who do gain a benefit from this modified proposal, that is, self-funded retirees with superannuation income from a private taxed superannuation source.
This later group is larger than the first group. This is indicated by the projected savings of the original proposal and the modified proposal. The Explanatory Memorandum attached to the first Bill provided detail that the combined estimated expenditure and savings on the income test changes would result in net expenditure of $12.3 million in 2008-09. However, over the following three years the estimated net savings were $30.2 million in 2009-10, $32.3 million in 2010-11 and $34.6 million in 2011-12. This was a net saving of $84.8 million over the four years.[53] This contrasts with the estimated savings for the modified CSHC income test presented with this Bill of $48.5 million over four years.[54]
The original intent of the CSHC when introduced was to allow some self-funded retirees access to concessional pharmaceuticals. The income test cut-off limits for the CSHC were raised twice during the years of the Howard government to the current $50 000 single and $80 000 partnered (combined). However, the fact there are still income limits indicates that the current government still wants some targeting of access to the CSHC, otherwise there would be no income limits and all persons of Age Pension age not on an income support payment would be provided with a CSHC. To not include the income from private taxed superannuation sources will see some self-funded retirees with large amounts of such superannuation income able to access a CSHC. This will contrast with like self-funded retirees, with superannuation income from a non-taxed source (like government superannuation) and with lesser amounts of income not being able to access a CSHC.
Indexation for family payments to movements in the Consumer Price Index (CPI) was introduced on 1 January 1990. Rates were also benchmarked to a proportion of the pension rate. The rate for a child aged 0 to 12 years was benchmarked to 15 per cent of the combined couple rate of the pension. The benchmark for 13 to 15 year olds was set at 20 per cent of the combined couple rate of the pension. These benchmarks were part of the Hawke Government policy announced in July 1987 to ensure that no child need live in poverty by 1990.[55]
This move ensured that ad hoc increases above normal indexation to the CPI in the pension rate provided by the Labor Government in 1990 and 1993 flowed through to family payments. These increases were delivered to keep the pension rate up with the 25 per cent of average weekly earnings benchmark originally announced by the Whitlam Government.
Under the Howard Government, pension indexation was changed from 1998 so that this 25 per cent benchmark for pensions was included in the SSA. The decade after this change saw accelerated growth in average earnings and a lower rate of increase for the CPI. Pension rates more often than not increased in line with movements in average earnings rather than the growth in the CPI. By 2008, the annual pension rate had increased by around $1500 more than would have been the case if indexed to movements in the CPI alone.[56]
Family payment rates also increased ahead of the growth in the CPI as a consequence of the benchmarks introduced in 1990. The benchmarks were updated with the introduction of the Family Tax Benefit (FTB) in 2000. The benchmarks for 0 to 12 year olds and the 13 to 15 year olds increased to 16.6 per cent and 21.6 per cent of average earnings respectively. This ensured that the higher rates that came with Family Tax Benefit were maintained.
Breaking the link with the pension is estimated to save over one billion dollars over the next four years. This estimate is based on the assumption that the CPI will grow less than average earnings. While this is probably a reasonable assumption in the short term, the history of these two measures by no means suggests that it will always be the case.
The government announced changes in the 2009-10 Budget to the way persons in aged care are funded and the share of the pension rate that aged care providers can access to fund the daily care cost of aged care residents.[57] The proposal involves changes to the amount of the maximum single rate of pension aged care providers can charge residents for their daily care fee.
Under section 58-4A of the Aged Care Act 1997 (ACA), the maximum fee an aged care provider can charge a resident in nursing home care is 85 per cent of the maximum single rate of pension.
Section 58-4A The standard resident contribution for a care recipient who is a post‑2008 reform resident is the amount obtained by rounding down to the nearest cent an amount equal to 85% of the * basic age pension amount (worked out on a per day basis).
Concerns have been expressed that for increase in the rate of the pension, most of the increase would not be seen by individual pensioners but be passed on to nursing home care providers, due to this legislative link between the pension rate and the maximum daily care fee rate.[58] The one-off $30 per week increase in the single rate of pension would have seen $25.50 of this increase potentially passed on the nursing home providers under the current section 58-4A of the ACA. Schedule 17 of the Bill proposes to amend section 58-4A to ensure a greater proportion of the pension rate increase and also the proposed Pension Supplement end up in the hands of the pension recipient. This is partially achieved by reducing the 85 per cent fee, as set out in section 58-4A, down to 84 per cent of the single rate of pension. The government claim is that of the $32.49 per week increase in the single age pension, pensioners in residential aged care will receive a net benefit of $10.49 per week.[59]
The other aim of the Schedule is to increase the amount of financial assistance provided to residential aged care providers. An additional $22.40 per week will go to residential aged care providers per person. This is an additional $713.2 million over the next four years to assist with the costs of food and cleaning.[60] It may also indirectly go some way towards addressing some of the concerns of the aged care industry, especially about the need for more funds for capital expenditure.[61]
Residents of residential nursing homes who are either self-funded retirees or part-rate pensioners will have their daily care fee saved at the current rate to protect them from any increase in the fees as a result of these changes. With the proposed $30 per week increase to the single pension rate, even with the reduced daily care fee rate of 84 per cent, it would still be more than 85 per cent of the current pension rate.
Newly entering residents after 20 September 2009 who are self-funded retirees or part-rate pensioners will also be partially saved. Their daily care fee will start off at the pre-20 September 2009 rate (that is $33.41 per day) and their rate will be increased every six months over four years until their daily care fee reaches 84 per cent of the basic single pension rate.
Schedule 18 presents amendments to the Veterans’ Entitlements Act 1986 (VEA). It proposes to add to the definition of an ‘operational area’ in Schedule 2 of the VEA, which describes operational areas as provided for under section 5B of the VEA. Section 5B refers to war and operational area terms and definitions. Schedule 2 of the VEA describes service that is classified as operational service.
Service in an operational area generally refers to service that is classified as war service or warlike service. Such war or warlike service allows access to some of the major assistance arrangements in the VEA, like access to the age service pension. It also can provide access to a Gold Card for older aged service personnel with war or warlike service. For example, all service personnel now aged 70 or more with post World War Two operational service now qualify for a Gold Card. Schedule 18 proposes to add to the definition of an operational area service in Schedule 2 of the VEA, service in the area of the Red Sea north of parallel 20 degrees in the period 13 January to 19 January 1993. This is the period of Australia’s involvement in what is now known as the first Gulf War.
The Bill has been referred to the Senate Community Affairs Committee for inquiry and report by 23 June 2009. Details of the inquiry are at http://www.aph.gov.au/senate/committee/clac_ctte/social_security_pension_reform_09/index.htm
Detailed tables of the financial impact of measures in the Bill are provided at the beginning of the Explanatory Memorandum at: http://parlinfo.aph.gov.au/parlInfo/download/legislation/ems/r4155_ems_741e6245-292e-4299-8ffa-01cca6ba17ec/upload_pdf/330671.pdf;fileType=application%2Fpdf
Item 1 provides for an increase to the basic rate of the single pension of $1 560 per annum for pension rate payments except for Parenting Payment Single and DSP for people aged under 21 years. The increase is to take effect from 20 September 2009.
The DSP rate paid to persons aged under 21 years has a Youth Disability Supplement paid in addition to their basic pension rate.[62] This raises the rate of DSP paid recognising the extra costs often faced by a person with a disability and for persons with sufficient level of work incapacity to qualify for DSP at such a young age they may be paid DSP for a prolonged period. Items 2 to 24 refer to the rate paid to DSP recipients aged less than 21 years with a dependant child.
Item 8 replaces subsection 1195(2) with new subsections 1195(2), (2A) and (2B). They provide for Parenting Payment Single to continue to be benchmarked to 25 per cent of MTAWE and the couple pension rate to be benchmarked to 41.76 per cent of MTAWE.
Item 9 inserts new section 1198A which benchmarks the single rate of pension to 66.33 per cent of the combined couple of pension.
Item 1 of Part 1 inserts new section 20A which provides for the definitions relating to the pension supplement.
Part 2 provides for the rate calculation for the pension supplement.
Part 3 provides for the rate calculation of the seniors supplement.
Schedule 5 adjusts the amendments to be made to the Social Security Law by the Carbon Pollution Reduction Scheme (Household Assistance) Act 2009 to take account of changes to pension and supplement rates made in this Bill.
Part 1 changes the pension income test taper rate from 40 per cent to 50 per cent.
Part 2 removes the additional income test free area for dependent children from the pension income test.
Item 4 inserts new Division 1AAA which provides for the work bonus.
Schedule 8 provides for the assessment of employment income for the purposes of the work bonus.
Item 1 inserts a new sections (1A) and (1B) into section 92J(1) to detail that a person cannot be registered for the PBS after 20 September 2009. Item 2 details that the amendments in Item 1 refer to applications for the PBS lodged on or after 20 September 2009. The net effect of these two items is to no longer allow the acceptance of any applications for the PBS lodged on or after 20 September 2009.
Schedule 10 provides for transitional arrangements to ensure that people potentially adversely affected by changes to the income test do not suffer a rate reduction as a result of the changes.
Items 1 and 2 repeal subsections 23(5A) and 23(5D) and substitutes new subsections (5A and 5D) to change the qualifying age for the age pension for men and women such that:
A man born during the period: |
a woman born during the period: |
will turn pension age at: |
On or before 30 June 1952 |
1 January 1949 to 30 June 1952 |
65 years[63] |
1 July 1952 to 31 December 1953 |
1 July 1952 to 31 December 1953 |
65 years and 6 months |
1 January 1954 to 30 June 1955 |
1 January 1954 to 30 June 1955 |
66 years |
1 July 1955 to 31 December 1956 |
1 July 1955 to 31 December 1956 |
66 years and 6 months |
On or after 1 January 1957 |
On or after 1 January 1957 |
67 years |
Schedule 12 provides for increased flexibility in the operation of pension advances. The maximum and minimum amounts that can be advanced and the number of advances that can be made in a year are proposed to be adjusted.
Items 1, 2 and 5 repeals provisions of the Family Assistance Act 1999 that provide for FTB-A rates to be benchmarked to the combined pension rate.
Item 3 changes the timing of indexation of the Maternity Immunisation Allowance from twice yearly in March and September to once yearly in July.
Schedule 15 extends the overseas portability to allow students receiving a range of income support payments to receive payment while studying overseas for the duration of their overseas study.
Schedule 16 excludes from the definition of income used in the Social Security and Veterans’ Affairs income tests, payment made under the Western Australian Cost of Living Rebate Scheme and the value of the Western Australian Country Age Pension Fuel Card.
Members, Senators and Parliamentary staff can obtain further information from the Parliamentary Library on (02) 6277 2410.
[1]. Australian Government, Budget measures: budget paper no. 2: 2009-10, Commonwealth of Australia, pp. 240-247, viewed 18 June 2009, http://www.aph.gov.au/budget/2009-10/content/bp2/html/index.htm
[2]. Utilities Allowance is paid quarterly to a person on a qualifying income support payment being Age Pension, Disability Support Pension, Carer Payment, Partner Allowance, Wife Pension, Widow B Pension, Bereavement Allowance or Widow Allowance. From March 2009 Utilities Allowance is $259.40 per member of a couple and $518.80 for a single annually.
[3]. Pharmaceutical Allowance (PhA) is paid fortnightly to a pension payment recipient, or an income support allowance payment recipient during a period of temporary illness or is aged 60 or more. From March 2009 PhA is $3.00 per week for a single or $3.00 per week for a couple combined.
[4]. Telephone Allowance is payable to a holder of a Pensioner Concession Card or a Commonwealth Seniors Health Card. From March 2009 the quarterly rates of Telephone Allowance are $23.00 single or $11.50 partnered each. A higher rate of $34.60 single or $17.30 partnered each is payable where the recipient has an Internet connection.
[5]. The pension GST supplement was introduced as part of the 1 July 2000 Tax Reform Package. It was based upon 4% of the then value of the basic rate of pension. After a deal with the Democrats, it was aimed at ensuring pensioners were not disadvantaged by the price increases resulting from the GST. The GST supplement is indexed to the CPI. From March 2009 the GST pension supplement is $19.50 single or $16.30 partnered each.
[6]. The CSHC is issued to persons over Age Pension age with annual adjusted taxable incomes of less than $50,000 single or $80,000 combined.
[7]. The SCAV SCA is payable to a holder of a CSHC. The annual rate of SCA at 20 September 2008 is $514.00 per year paid quarterly.
[8]. W Swan (Treasurer) and J Macklin (Minister for Families, Housing, Community Services and Indigenous Affairs), Secure and Sustainable Pension Reform: A pension that keeps up with the cost of living, media release, Canberra, 16 June 2009, viewed 21 May 2009, http://www.jennymacklin.fahcsia.gov.au/internet/jennymacklin.nsf/content/pension_cost_living_12may2009.htm
[9]. W Swan (Treasurer), Australia’s future tax system, media release, Canberra, 13 May 2008, viewed 16 June 2009, http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2008/036.htm&pageID=003&min=wms&Year=2008&DocType=0
[10]. Australian Government, Tax review report on the retirement income system, Commonwealth of Australia, Canberra, 12 May 2009, viewed 16 June 2009, http://www.fahcsia.gov.au/about/publicationsarticles/corp/budgetpaes/budget09_10/pension/pages/pensionreviewreport.aspx
[11]. Australian Pensioners and Superannuants Federation Inc, current policies, Sydney, 2009, viewed 19 June 2009, http://www.apsf.asn.au/apsf/
[12]. W Swan (Treasurer) and J Macklin (Minister for Families, Housing, Community Services and Indigenous Affairs), Secure and Sustainable Pension Reform: A pension that keeps up with the cost of living.
[13]. Australian Bureau of Statistics (ABS), Analytical Living Cost Indexes for Selected Australian Household Types: Update to June 2005, cat. no. 1350.0, ABS, Canberra, 31 August 2005.
[14]. Families, Housing, Community Services and Indigenous Affairs, annual report 2007-08, Canberra 2008, viewed 19 June 2009, http://www.facs.gov.au/about/publicationsarticles/corp/Documents/2008%20Annual%20Report/default.htm
[15]. J Macklin (Minister for Families, Housing, Community Services and Indigenous Affairs) and W Swan (Treasurer), Secure and Sustainable Pension Reform: Better targeting of the pension, media release, 12 May 2009, viewed 22 June 2009, http://www.jennymacklin.fahcsia.gov.au/internet/jennymacklin.nsf/content/targeting_pension_12may2009.htm
[16]. Second Reading Speech, p.2, viewed on 22 June 2009, http://parlinfo/parlInfo/genpdf/chamber/hansardr/2009-06-15/0011/hansard_frag.pdf;fileType=application%2Fpdf
[17]. J Harmer, Pension Review: Background Paper, Department of Families, Housing, Community Services and Indigenous Affairs, Canberra, august 2008, p. 48.
[18]. Australian Government, Budget measures: budget paper no. 2: 2009-10, Commonwealth of Australia, pp. 240, viewed 18 June 2009, http://www.aph.gov.au/budget/2009-10/content/bp2/html/index.htm
[19]. Explanatory memorandum, Financial impact statement.
[20]. Australian Government, portfolio budget statements 1997-98, budget related paper no. 1.14: Social Security portfolio, Commonwealth of Australia, Canberra, 1997, p. 57.
[21]. Australian Government, portfolio budget statements 1997-98, budget related paper no. 1.14: Social Security portfolio.
[22]. Senate Community Affairs Committee, Answers to Questions on Notice, Human Services Portfolio, Additional Estimates 2004-05, 15 February 2005, Question HS48, viewed 19 June 2009, http://parlinfo/parlInfo/search/summary/summary.w3p;adv=yes;group=;orderBy=customrank;page=2;query=Content%3A%22pension%20bonus%20scheme%22%20Dataset%3AcomSen;querytype=;resCount=Default
[23]. J. Macklin, ‘Second reading speech: Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Bill 2009, House, Debates, 15 June 2009, p. 3.
[24]. In 1909 the qualifying age for the age pension was 65 for both men and women but was reduced to age 60 for women in 1910. The qualifying age for women has been incrementally raised from age 60 to 65 and this will be completed in 2014.
[25]. Australian
Bureau of Statistics (ABS), Australian Historical Population Statistics,
2008, cat. no. 3105.0.65.001, ABS, Canberra, 2008, viewed 20 May 2009,
http://www.abs.gov.au/AUSSTATS/abs@.nsf/
DetailsPage/3105.0.65.0012008?OpenDocument
[26]. Australian
Bureau of Statistics (ABS), Deaths, Australia, 2007, cat. no. 3302, ABS, Canberra, 2008, viewed 20 May 2009,
http://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/
C67A858BA00CB846CA2568A9001393C6?OpenDocument
[27]. Source: J Macklin, (Minister for Families Housing, Community Services and Indigenous Affairs), Secure and sustainable pension reform: Age Pension age, media release, Canberra, 12 May 2009, viewed on 21 May 2009, http://www.jennymacklin.fahcsia.gov.au/internet/jennymacklin.nsf/content/age_pension_12may2009.htm
[28]. J. Macklin, Second reading speech, p. 1.
[29]. J. Macklin, Second reading speech, p. 3.
[30]. ABS, Population Projections, Australia, 2006 to 2101, p.46.
[31]. ABS, p. 47.
[32]. J. Harmer, Pension review report, Department of Families, Housing, Community Services and Indigenous Affairs, 27 February 2009, p. 146-7, viewed 22 June 2009, http://www.fahcsia.gov.au/about/publicationsarticles/corp/BudgetPAES/budget09_10/pension/Documents/Pension_Review_Report/PensionReviewReport.pdf; K. Henry, The retirement income system: report on strategic issues, Review panel Australia’s future tax system, May 2009, p. 1, viewed 22 June 2009, http://taxreview.treasury.gov.au/content/downloads/retirement_income_report_stategic_issues/retirement_income_report_20090515.pdf
[33]. J. Harmer, Pension review, p. 147; K. Henry, Retirement income system, p. 1.
[34]. M. Grattan, ‘Rudd rules out changes to super access’, Age, 30 May 2009.
[35]. T. Abbott, ‘Second reading speech: Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Bill 2009, House, Debates, 16 June 2009, p 2.
[36]. P. Karvelas, ‘Seniors want retirement at 75’, Australian, 28 August 2008.
[37]. M. Franklin, ‘Revolt by unions on work to 67’, Australian, 25 May 2009.
[38]. C. Martin (chief executive of Australian Council of Social Service (ACOSS)), When raising retirement ages don’t start with the poorest, ABC radio, 16 June 2009, viewed 22 June 2009, http://www.abc.net.au/news/stories/2009/06/16/2599211.htm; COTA over 50s, Submission to the Community Affairs Legislation Committee on the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Bill 2009, p. 5, viewed 22 June 2009, http://www.aph.gov.au/Senate/committee/clac_ctte/social_security_pension_reform_09/submissions/sub02.pdf
[39]. AAP, ‘Pension age rise will cost money: unions’, the age.com.au, 1 June 2009, viewed 22 June 2009, http://news.theage.com.au/breaking-news-national/pension-age-rise-will-cost-money-unions-20090601-brys.html
[40]. M. Morrissey and E. Garr, Working the graveyard shift: why raising social security income age is not the answer, EPI briefing paper No. 232, Economic Policy Institute, 5 May 2009, p. 3, viewed 22 June 2009, http://epi.3cdn.net/65bf2e24d59cf56166_dym6ive5s.pdf. According to a 2004 report, ‘life expectancy for persons aged 65 was highest in the least disadvantaged areas (males 18.0 years, females 21.3 years) and lowest in the most disadvantaged areas (males 16.7 years, females 20.6 years)’. Queensland University of Technology and Australian Institute of Health and Welfare (AIHW), Health inequalities in Australia: mortality, AIHW, September 2004, p. 84, viewed 22 June 2009, http://www.aihw.gov.au/publications/phe/hiam/hiam.pdf
[41]. S. Lunn, ‘Baby boomers ready to work longer’, Australian, 1 June 2009.
[42]. ACOSS, Submission to the Taxation Review Panel, Adequate, fair, sustainable, and simple:
retirement incomes reform, p. 6, February 2009, viewed 22 June 2009, http://www.acoss.org.au/upload/publications/submissions/5645__ACOSS%20Submission%20-%20retirement%20incomes09-final.pdf
[43]. C. Martin, Don’t start with the poorest;
[44]. M. Morrisey and E. Garr, Graveyard shift, pp. 2-3.
[45]. COTA over 50s, Submission, p. 5.
[46]. Australian Government, Budget measures: budget paper no. 2: 2009-10, Commonwealth of Australia, p. 226, viewed 18 June 2009, http://www.aph.gov.au/budget/2009-10/content/bp2/html/index.htm
[47]. Australian Government, Budget measures: budget paper no. 2:2008-09, Commonwealth of Australia, pp. 381-382, viewed 19 June 2009, http://www.budget.gov.au/2008-09/content/bp2/html/index.htm
[48]. P Yeend, Social Security and Veterans' Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009, Bills digest, no. 99, 2008-09, Parliamentary Library, Canberra, 24 February 2009, viewed 19 June 2009, http://www.aph.gov.au/library/pubs/bd/2008-09/09bd099.htm#Contact
[49]. Explanatory Memorandum, Financial impact statement.
[50]. The age pension age for males is age 65. Pension age for females is being raised by six months every two years so that by 1 January 2014, female and male pension ages will be age 65. The table below show when females qualify.
Date of Birth Qualifying age
Before 30 June 1944 63 yrs
Between 1 July 1944 to 31 Dec 1945 63.5 yrs
Between 1 Jan 1946 to 30 June 1947 64 yrs
Between 1 July 1947 to 31 Dec 1948 64.5 yrs
After 1 Jan 1949 65 yrs
[51]. Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), Annual Report 2007-08, Canberra, FaHCSIA, p. 145, viewed 19 June 2009, http://www.facs.gov.au/annualreport/2008/default.htm
[52]. Australian Government, Budget measures: budget paper no. 2:2008-09, Commonwealth of Australia, pp. 381-382.
[53]. Social Security and Veterans’ Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009, Explanatory memorandum, http://parlinfo/parlInfo/search/display/display.w3p;adv=yes;db=;group=;holdingType=;id=;orderBy=customrank;page=0;query=Content%3Aseniors%20Dataset%3AbillsCurBef,billsCurNotBef;querytype=;rec=0;resCount=Default
[54]. Explanatory Memorandum, Financial impact statement.
[55]. B Howe (Minister for Social Security), A Fair Deal for Families: Economic Statement April 1989, media release, 12 April 1989, p. 2.
[56]. Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), Annual Report, 2007–08, FaHCSIA, Canberra, 2008, p. 137.
[57]. J Macklin (Minister for Families, Housing, Community Services and Indigenous Affairs), Pension reform: impact on aged care and public housing, media release, Canberra, 12 May 2009, viewed 19 June 2009, http://www.jennymacklin.fahcsia.gov.au/internet/jennymacklin.nsf/content/aged_care_housing_12may2009.htm
[58]. S Elks, ‘Increase should come straight to us, says aged-home resident’, The Australian, p. 12, 12 August 2008, viewed 22 June 2009, http://parlinfo/parlInfo/search/display/display.w3p;adv=yes;db=;group=;holdingType=;id=;orderBy=customrank;page=1;query=Content%3A%22nursing%20home%22%20Content%3Apension%20Content%3A%22nursing%20home%22%20(Date%3A01%2F01%2F2008%20%3E%3E%20)%20Dataset%3Apressclp;querytype=;rec=9;resCount=Default
[59]. Explanatory Memorandum, p. 97.
[60]. Explanatory Memorandum, p. 97.
[61]. Aged Care
Association of Australia, Aged care capital reform now urgent, media
release,
13 March 2009, viewed 22 June 2009, http://www.agedcareassociation.com.au/content/Aged%20Capital%20Reform%20now%20urgent.pdf
[62]. The rate of the Youth Disability Supplement is $105.20 per fortnight as at June 2009.
[63]. No increase in age pension for this age group
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