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Research Paper 11 1998-99

Social Security Payments for the Aged, those with Disabilities and Carers 1909 to 1998

Dale Daniels
Social Policy Group
16 February 1999

Contents

Introduction

The Aged and those with Disabilities

Old-Age Pension 1909 to 1947, Age Pension 1947 to 1998

Invalid Pension 1909 to 1991, Sheltered Employment Allowance 1967 to 1991, Rehabilitation Allowance 1983 to 1991, Disability Support Pension 1991 to 1998

Wives and Carers

Wife's Allowance 1943 to1972, Wife Pension 1972 to 1998

Spouse Carer's Pension 1983 to 1985, Carer Pension 1985 to 1997, Carer Payment 1997 to 1998

Means Testing

The Means Test 1909 to 1961, The Merged Means Test 1961 to 1976, The Income Test 1976 to 1985, The Income and Assets Tests 1985 to 1998

Concessions and Allowances

Funeral Benefit 1943 to 1990

Pensioner Concessions 1950 to 1998

Mobility Allowance 1983 to 1998

Supplementary Assistance 1958 to 1985, Rent Assistance 1985 to 1998

Conclusion

Endnotes

 

Acronyms

ALP

Australian Labor Party

AP

Old-age Pension/Age Pension

CP

Carer's Pension

CPI

Consumer Price Index

CSHC

Commonwealth Seniors Health Card

DSP

Disability Support Pension

DSS

Department of Social Security

DVA

Department of Veteran's Affairs

DWS

Disability Wage Supplement

FAS

Family Allowance Supplement

IP

Invalid Pension

JSA

Job Search Allowance

LIB-CP

Liberal Party - Country Party Coalition

LIB-NCP

Liberal Party - National Country Party Coalition

LIB-NPA

Liberal Party - National Party Coalition

MA

Mobility Allowance

MTAWE

Male Total Average Weekly Earnings

NSA

Newstart Allowance

RA

Rent Assistance

ReA

Rehabilitation Allowance

SA

Supplementary Assistance

SEA

Sheltered Employment Allowance

UAP-CP

United Australia Party - Country Party Coalition

WfP

Wife Pension

YTA

Youth Training Allowance

 

Introduction

This paper is one of a series of papers, produced by the Social Policy Group of the Parliamentary Library, dealing with the history of Social Security Payments. Other publications in this series are:

Social Security Payments: 1 Children, 1912 to 1995

Social Security Payments: 2 The Unemployed, the Sick and those in Special Circumstances, 1945 to 1995

Social Security Payments: 3 Sole Parents and Widowed People, 1942 to 1995

It is planned to update these papers within the next twelve months.

The Department of Social Security (DSS) makes, or has made in the past, a number of payments for aged people, people with disabilities and carers. This paper traces the history of each of these payments from their introduction to the present day.

Each section of the paper includes an introductory commentary to put the various payments into a broader context. A series of chronologies setting out the changes over time to each of the major payments treated follows. This paper is not a definitive treatment of the history of social security in Australia. It is a reference tool for those needing to locate specific changes quickly and place them in their chronological context.

The date from which measures take effect has been used to date changes. This means that certain measures shown to be introduced by one Government may have been legislated for under the previous Government. Where changes have been recently announced but not passed into law by the Parliament, they are placed according to the expected date of effect. Many measures of only moderate interest and minor administrative modifications to payments have not been included.

Rates of payment are generally not given in the text, but can be found in the tables. In the text, imperial currency is used until 1966 and decimal currency is used after that date. In the tables decimal currency is used throughout.

Note on Sources and further reading

In addition to the Commonwealth Budget Papers and Social Security legislation, the following publications have been used in the preparation of this paper:

T. Carney and Hanks, P. Social security in Australia. Oxford University Press, Melbourne, 1994.

Department of Social Security. Annual report, various.

Department of Social Security. 'Developments in social security: a compendium of legislative changes since 1908', Research and Statistics Branch Research Paper No 20. AGPS, Canberra, 1983.

T.H. Kewley, Social security in Australia 1900-72, Sydney University Press, Sydney, 1973.

T. H. Kewley, Australian social security today: major developments from 1900 to 1978, Sydney University Press, Sydney, 1980.

The Aged and those with Disabilities

The Introduction of Age and Invalid Pensions

At federation in 1901 the Constitution of the Commonwealth of Australia gave power to the Commonwealth Government to legislate for invalid and old-age pensions. This was a power held concurrently with the States. A Royal Commission on Old-age Pensions was conducted during 1905-6 and legislation for both age and invalid pensions was passed in 1908 during the Deakin administration. Several states had already been active in this area. New South Wales (NSW) had introduced a non-contributory old age pension scheme in 1900. The only other non-contributory schemes then in existence were those established in New Zealand in 1898 and Denmark in 1891. Some other countries had voluntary contributory schemes and Germany had a compulsory contributory scheme. The NSW scheme provided statutory entitlements rather than offering payments at the discretion of a government official or charitable body, as had most earlier welfare measures. Victoria also established an age pension at about the same time, but it was a rather more limited and discretionary scheme. By the time the Commonwealth Old Age and Invalid Pensions became available in 1909 and 1910, NSW had also introduced invalid pensions and Queensland had established age pensions, both in 1908.

1908 was the also the year in which the Asquith Liberal Government began the development of age pensions in the United Kingdom by legislating for non-contributory age pensions for people aged 70 years or more. It was not until 1925 that age pensions were extended on a contributory basis for those aged 65 to 70 years. The United States took even longer to act at a national level. In 1935 an insurance-based old age pension scheme was introduced after some state old age assistance schemes had been established in the early thirties. By 1940 Australia was one of about thirty five countries with social security programs for the aged and the disabled. By 1997 at least 166 countries of the 185 in the United Nations had some sort of program in this area(1).

The Australian pensions were modelled in part on the New Zealand scheme and were similar to the NSW scheme. The pensions were non-contributory, non-discretionary and means tested. They were available from the age of 65 years for men and 60 years for women. Unlike most other OECD countries, Australia has never adopted a government run social insurance scheme. Such schemes usually involve compulsory contribution from employers and employees and offer benefits which relate to the previous income levels of participants. There was not from lack of interest in social insurance in Australia. The Cook Government in 1913, the Bruce/Page Government in 1928 and the Lyons Government in 1938 all examined such schemes. Legislation was introduced into Parliament in 1928 and 1938 for national insurance schemes covering a wide range of benefits. On both occasions widespread opposition to the contributory features of the schemes prevented implementation. The Menzies Government initially favoured a contributory scheme as a way of getting rid of the pension means test, but by 1954 it had been rejected as impractical. A contributory pension scheme was temporarily revived as a policy option in the early seventies by the ALP, but has not been seriously considered since then. The spread of private superannuation in the last ten years appears to have pushed social insurance completely off the agenda in Australia. Private superannuation has many of the features of a government run social insurance scheme while limiting government involvement. It provides a government mandated framework for private saving for retirement which features employer contributions and earnings related benefits.

The Disability Support Pension Replaces Invalid Pension

The Invalid Pension was essentially unchanged from its introduction until 1991 when it was replaced by the Disability Support Pension. The change was prompted by the need for a more active approach to income support for people with disabilities. Since the seventies the numbers of invalid pensioners had grown steadily due in part to increased levels of unemployment which had made it harder for people with disabilities to compete for jobs. The direction of change was set by the Cass Review of the social security system in the late eighties. It recommended a shift from the Invalid Pension where qualification depended upon 'permanent incapacity to work' to a system which provided access to employment programs and an emphasis on rehabilitation and a return to self-sufficiency where practical.

 

Old-Age Pension 1909 to 1947, Age Pension 1947 to 1998

 

Commencement Date

Details

Government at Commencement

Original Enabling Legislation

Invalid and Old-age Pensions Act 1908 (No. 17 of 1908)

1909

From April the Old-age Pension (AP) was payable to people who were aged 65 years and over, or were aged 60 years and over and were permanently incapacitated for work.

Groups excluded from eligibility were those living overseas, 'aliens', those naturalised for less than three years, overseas born 'asiatics', and 'aboriginal natives' of Australia, Africa, The Pacific Islands or New Zealand. Applicants for AP were required:

  • to be residing in Australia when claiming a pension
  • to have continuously resided in Australia for at least 20 years (absences of up to one tenth of the total period of residence were not taken to interrupt the continuity of residence)
  • to be of good character
  • to have not deserted or failed to maintain their wife (if a husband) or deserted their husband (if a wife), in the preceding five years, without just cause, and
  • to have not deserted (if a mother) or failed to maintain (if a father) any children under 14 years of age, in the preceding five years.

The pension was means tested.

Pensions could be paid to institutions, organisations or other persons where a pensioner was considered unfit to be entrusted with a pension.

Fisher, ALP

1910

From November a section of the original Act providing for pension eligibility at 60 years of age for women commenced to take effect.

Fisher, ALP

1912

From December naturalised residents no longer had to wait three years to be eligible for pension.

Fisher, ALP

1926

Indians born in British India became eligible for pensions.

Bruce-Page, Nationalist-CP

1931

From July pension rates were reduced, as part of the emergency financial measures taken during the Depression.

Scullin, ALP

1933

From October the rate of pension began to be reviewed annually based on the retail price index.

Lyons, UAP

1937

From September annual review of pension rates ceased.

Lyons, UAP-CP

1940

From December automatic quarterly rate adjustment based on the retail price index commenced.

Menzies, UAP-CP

1941

From December all 'asiatics' who were British subjects became eligible for pension.

Curtin, ALP

1942

From July 'Aboriginal natives' of Australia became eligible for pension if they were not subject to a state law 'relating to the control of Aboriginal natives' or if they lived in a state where they could not be exempt from such laws but were of eligible for pension on the grounds of 'character, standard of intelligence and development'. Pacific Islanders known as 'Kanakas' were also made eligible.

Pension became exempt from income tax.

Curtin, ALP

1943

From April:

  • funeral benefits of up to ten pounds were introduced.
  • Wife's allowance of 15 shillings per week was introduced for wives of incapacitated age pensioners where she lived with him, was his legal wife and did not receive a pension in her own right.

Curtin, ALP

1944

From April cost of living adjustments of the pension rate were discontinued.

Curtin, ALP

1947

From July:

  • the Old-Age Pension was renamed the Age Pension.
  • specific racial disqualifications other than those referring to Aboriginal Australians were removed.
  • Wife's allowance became payable to de facto wives who had lived with the pensioner for at least three years.

Chifley, ALP

1950

From August a pensioner medical service providing free general practitioner services and some medicines was introduced.

Menzies, LIB-CP

1952

From September residence requirements were eased so that where a claimant had resided in Australia for periods totalling 18 years they could be deemed to have been resident during occasional absences totalling two years plus six months for each year of residence in excess of 18 years.

From November access to the pensioner medical service was limited to pensioners with income under two pounds per week.

Menzies, LIB-CP

1958

From October Supplementary Assistance was introduced (see p. 43 for details).

Menzies, LIB-CP

1960

From September all aboriginal people other than those who were 'nomadic or primitive' became eligible for pension.

Menzies, LIB-CP

1962

From March the residence requirement was modified. Ten years continuous residence at any time qualified a person for pension. Where continuous residence was at least five years, the ten year requirement was reduced by all periods of residence totalling in excess of ten years.

Menzies, LIB-CP

1963

From September rates of payment were reorganised so that a standard rate was paid to unmarried people and a married rate was paid to married people.

Menzies, LIB-CP

1964

From October a telephone rental concession for pensioners was introduced. A one third reduction in telephone rental was made available to pensioners living alone, with other pensioners or with other low-income people.

Menzies, LIB-CP

1965

From October:

  • Wife's allowance was made available to the wife of any age pensioner whose wife did not qualify for pension in her own right.
  • pensioners whose wife received a Wife's allowance were paid at the standard rate.
  • funeral benefit of up to twenty pounds was introduced for pensioners responsible for the funeral of a pensioner, a dependent child or a spouse.

Menzies, LIB-CP

1966

From January all age pensioners were eligible for the Pensioner Medical Service without a separate means test.

Menzies, LIB-CP

1966

From September:

  • 'aliens' were no longer disqualified from receiving an AP.
  • Aboriginal people were no longer disqualified from receiving an AP if they were living a 'nomadic or primitive' life.

Holt, LIB-CP

1968

From September:

  • married age pensioners were eligible for the standard rate where their spouse was receiving unemployment or sickness benefit.
  • the surviving member of a pensioner couple continued to receive the equivalent of two married rate pensions for twelve weeks after the death of their spouse.

Gorton, LIB-CP

1969

From September pension continued to be paid during an absence from Australia of up to thirty weeks.

Gorton, LIB-CP

1970

From March married pensioner couples separated by illness were eligible for the standard rate.

Gorton, LIB-CP

1971

In April and September rate increases were given only to full rate pensioners and those receiving a pension reduced by fifty cents or less.

McMahon, LIB-CP

1972

From April:

  • rate increases were again given to all pensioners and those who had missed out in 1971 were given catch up rises.
  • Wife's allowance was replaced by Wife's Pension (WfP) paid at the married rate and subject to the means test.

McMahon, LIB-CP

1973

From May pensions granted in Australia could be paid in any country in which the pensioner lived.

From July AP was subject to income tax.

Whitlam, ALP

1974

From March AP could be paid to people living outside of Australia, provided the claimant had lived in Australia for an aggregate of 30 years, had been within five years of age pension age when they left Australia, had left before 8 May 1973 and was in need of financial assistance.

From November the requirement that a pension could only be paid where the claimant was of 'good character' and 'deserving of a pension' was removed.

Whitlam, ALP

1977

From May AP rates were automatically increased twice yearly. In May they were increased in line with movements in the Consumer Price Index (CPI) in the six months to the preceding December. In November they were increased in line with movements in the CPI in the six months to the preceding June.

Fraser, LIB-NCP

1978

From November indexation of the rate of pension was conducted once a year in November in accordance with movements in the CPI between the previous two June quarters.

Fraser, LIB-NCP

1979

From November twice yearly indexation of the rate of pension was restored using the same method that had been used prior to November 1978.

Fraser, LIB-NCP

1984

From June the term 'de-facto spouse' replaced the term 'dependent female' in the legislation.

From November the pension rates were increased even though the CPI had fallen in the relevant quarters.

Hawke, ALP

1985

From September residency requirements were modified so that a claimant had to have been resident for ten years at least five of which had to be for a continuos period.

Hawke, ALP

1986

From November:

  • the timing of automatic indexation of payment rates in line with movements in the CPI was deferred by six weeks. Indexation occurred on 13 December and 13 June of each year rather than 1 November and 1 May.
  • the rate of DSS pension payable to a recipient of a war widow's pension was frozen. New grants were paid at the rate of $60.05 per week subject to the income and assets tests

Hawke, ALP

1987

From October residency requirements were changed to exclude temporary residents and prohibited non-citizens.

Hawke, ALP

1989

From November the timing of indexation was brought forward in several steps of four weeks to March and September with the transition being complete by September 1990.

Hawke, ALP

1990

From January funeral benefit was replaced by a lump sum bereavement payment equivalent to 14 weeks pension payable to the surviving member of a pensioner couple. When a single pensioner died one fortnight's payment was payed to their estate.

From November a Pharmaceutical Allowance of $2.50 per week for a single pensioner and $1.25 for a married pensioner was introduced to compensate for the introduction of a $2.50 charge for each Pharmaceutical Benefits Scheme prescription. The allowance was indexed annually and was tax-free.

Hawke, ALP

1991

From January people receiving or applying for AP could be required to supply their tax file number and that of their spouse.

Hawke, ALP

1993

From September pensioners with partners in gaol or psychiatric confinement were paid at the single rate.

Keating, ALP

1995

From January refugees applying for pensions were exempt from length of residence requirements.

From July the age of eligibility for women applying for AP began to gradually rise from 60 years to 65 years. The process will take until July 2013 to complete with the eligibility age increasing by six months every two years.

Keating, ALP

1996

From July age pensioners were eligible for advance payments of pension of between $250 and $500 to assist with living or capital expenses.

Howard, LIB-NPA

1997

From September the rate of the single pension was maintained at a level equal to or greater than the annualised original, all males, total average weekly earnings figure (MTAWE). If the rate after indexation in March and September was less than the MTAWE then it was raised to that level. A sunset clause applied to this provision. It will expire on 20 September 2002.

Howard, LIB-NPA

1998

From July a pension bonus scheme for people deferring retirement and continuing to work for at least 20 hours per week was introduced. A tax free bonus payment equal to 9.4 per cent of the basic pension entitlement for each year of deferral up to a maximum of five years was to be paid when the pension was received.

Howard, LIB-NPA

 

Invalid Pension 1909 to 1991, Sheltered Employment Allowance 1967 to 1991, Rehabilitation Allowance 1983 to 1991, Disability Support Pension 1991 to 1998

Commencement Date

Details

Government at Commencement

 

Original Enabling Legislation

Invalid and Old-age Pensions Act 1908 (No. 17 of 1908)

 

1910

From November the Invalid Pension (IP) was payable to people who were aged 16 years and over and were permanently incapacitated for work due to an accident or invalidity. An examination by a medical practitioner was required.

Groups excluded from eligibility were those living overseas, 'aliens', overseas born 'asiatics', and 'aboriginal natives' of Australia, Africa, The Pacific Islands or New Zealand.

Applicants for IP were required to:

  • be residing in Australia when claiming a pension
  • have continuously resided in Australia for at least five years (absences of up to one tenth of the total period of residence were not taken to interrupt the continuity of residence)
  • have been permanently incapacitated while in Australia
  • forgo pension if the incapacity was not self induced nor caused in order to obtain a pension
  • have no claim for maintenance or compensation on account of their accident or invalidity, and
  • forgo pension if immediate relatives were adequately maintaining them.

Pensions could be suspended or paid to institutions, organisations or other persons where a pensioner was considered unfit to be entrusted with a pension.

Pension could not be paid to inmates of benevolent asylums or charitable institutions, however payments were made to the institution as 'act of grace' payments. Inmates of asylums for the insane had their pension suspended until they were discharged, at which point they received a back payment of up to four weeks pension for the period they were in the asylum.

The pension was paid subject to a means test. The value of property, both real and personal, owned by a pensioner could not exceed 310 pounds and applicants were not permitted to deprive themselves of property in order to qualify for the pension. Where the value of the property of a single pensioner included their residence and exceeded 100 pounds, pension was reduced by one pound for every ten pounds of value in excess of 100 pounds. Where the property did not include their residence or that residence produced income, pension was reduced by one pound for every ten pounds of value in excess of 50 pounds. The pensions of members of couples were reduced in the same way but the amounts above which pension was reduced were halved to 50 pounds and 25 pounds respectively.

Income over 26 pounds per annum reduced the amount of pension payable on a pound for pound basis. The rate of pension was initially 26 pounds per annum, so a pensioner's total income could not exceed 52 pounds per annum under these rules. Each member of a pensioner couple was deemed to receive half of the couple's total income and own half of the couple's total property.

Fisher, ALP

1912

Naturalised residents no longer had to wait three years to be eligible for pension.

Permanently blind people became eligible for IP regardless of capacity to work but were deemed to be receiving reasonable wages. This allowed some working blind people to receive IP and encouraged work by those able to perform it.

People permanently blind or incapacitated by a birth defect were able to claim IP if they had come to Australia before the age of 3 years.

Fisher, ALP

1916

From October an institutional pension was paid to pensioners in benevolent asylums, equal to the difference between the 'act of grace' payment to the institution and the rate of IP.

Hughes, ALP

1923

From September:

  • institutional pension was made payable to those becoming eligible after admission to benevolent asylums. It was also paid to pensioners in hospital for more than 28 days.
  • blind people and people incapacitated by a birth defect, who were not born in Australia, became eligible for IP after 20 years continuous residence in Australia.

Bruce-Page, Nationalist-CP

1926

Indians born in British India became eligible for pensions.

Bruce-Page, Nationalist-CP

1931

From July pension rates were reduced, as part of the financial emergency measures taken during the Depression.

Scullin, ALP

1933

From October the rate of pension began to be annually reviewed based on the retail price index.

Lyons, UAP

1937

From September annual review of pension rates ceased.

Lyons, UAP-CP

1940

From December automatic quarterly rate adjustment based on the retail price index commenced.

Menzies, UAP-CP

1941

From December:

  • all 'asiatics' who were British subjects became eligible for pension.
  • a legislative measure of incapacity to work was introduced. Where a person's capacity for work did not exceed 15 per cent they were deemed permanently incapacitated and therefore eligible for IP.
  • assessment for IP eligibility began to include assessment for vocational or rehabilitation training. A pension was paid while such training was undertaken.

Curtin, ALP

1942

From July:

  • pension was no longer suspended when a pensioner entered hospital.
  • 'Aboriginal natives' of Australia became eligible for pension if they were not subject to a state law 'relating to the control of Aboriginal natives' or if they lived in a state where they could not be exempt from such laws but were of eligible for pension on the grounds of 'character, standard of intelligence and development'. Pacific islanders known as 'Kanakas' were also made eligible.
  • pension became exempt from income tax.

Curtin, ALP

1943

From April wife's allowance of 15 shillings per week was introduced for wives of invalid pensioners where she lived with him, was his legal wife and did not receive a pension in her own right.

Curtin, ALP

1944

From April:

  • cost of living adjustments of the pension rate were discontinued.
  • pensioners who were imprisoned had their pension suspended rather than cancelled. The pension could be paid instead to a dependent wife or child.

Curtin, ALP

1946

Claimants for IP who were adequately maintained by their parents and were aged 21 years or more were made eligible for IP.

Chifley, ALP

1947

From July:

  • specific racial disqualifications other than those referring to Aboriginal Australians were removed.
  • eligibility was broadened so that incapacity or blindness that occurred during temporary absence from Australia did not disqualify a claimant. Any incapacity that had occurred outside of Australia did not disqualify a claimant if they arrived in Australia before the age of three years or had resided continuously in Australia for 20 years.

Chifley, ALP

1948

From October IP was paid to people undertaking treatment or vocational training. A training allowance and living away from home allowance could also be paid.

Chifley, ALP

1950

From July Tuberculosis Allowance replaced IP for people with tuberculosis. A means test applied and the rate was three pounds twelve shillings and six pence for a single person or six pounds ten shillings for a couple.

From August a pensioner medical service providing free general practitioner services and some medicines was introduced.

Menzies, LIB-CP

1951

From October people aged 16 to 20 years maintained by their parents were made eligible for rehabilitation.

Menzies, LIB-CP

1952

From September residence requirements were eased so that where a claimant had resided in Australia for periods totalling 18 years they could be deemed to have been resident during occasional absences totalling two years plus six months for each year of residence in excess of 18 years.

Menzies, LIB-CP

1953

From October benevolent asylums were referred to as benevolent homes.

Menzies, LIB-CP

1954

From October the means test for permanently blind people was removed.

Menzies, LIB-CP

1955

From November access to the pensioner medical service was limited to pensioners with income under two pounds per week.

Menzies, LIB-CP

1958

From October Supplementary Assistance was introduced (see p. 43 for details).

Menzies, LIB-CP

1960

From September all Aboriginal people other than those who were 'nomadic or primitive' became eligible for pension.

Menzies, LIB-CP

1962

From March the residence requirement was modified. Permanent incapacity or blindness which occurred outside of Australia did not disqualify a person from eligibility for IP if continuous residence at any time exceeded ten years. Where continuous residence was at least five years, the ten-year requirement was reduced by all periods of residence totalling in excess of ten years.

Menzies, LIB-CP

1963

From September rates of payment were reorganised so that a standard rate was paid to unmarried people and a married rate was paid to married people.

Menzies, LIB-CP

1964

From October a telephone rental concession for pensioners was introduced. A one third reduction in telephone rental was made available to pensioners living alone, with other pensioners or with other low-income people.

Menzies, LIB-CP

1966

From January all age pensioners were eligible for the Pensioner Medical Service without a separate means test.

Menzies, LIB-CP

1966

From September:

  • 'aliens' were no longer disqualified from receiving an Age Pension (AP).
  • Aboriginal people were no longer disqualified from receiving an AP if they were living a 'nomadic or primitive' life.
  • a pensioner leaving a psychiatric hospital became eligible for a back-payment of 12 weeks pension.

Holt, LIB-CP

1967

From June Sheltered Employment Allowance (SEA) was introduced. People engaged in sheltered employment were eligible. SEA was paid at the same rate as IP but the means test was structured to allow for earnings. Earnings above $10 per week for a single person or $17 per week for a married person reduced SEA by one dollar for every two dollars earned.

Holt, LIB-CP

1968

From September:

  • married pensioners were eligible for the standard rate where their spouse was receiving unemployment or sickness benefit.
  • the surviving member of a pensioner couple continued to receive the equivalent of two married rate pensions for 12 weeks after the death of their spouse.

Gorton, LIB-CP

1969

Pension continued to be paid during an absence from Australia of up to 30 weeks.

Gorton, LIB-CP

1970

From March married pensioner couples separated by illness were eligible for the standard rate.

Gorton, LIB-CP

1971

In April and September rate increases were given only to full rate pensioners and those receiving a pension reduced by fifty cents or less.

McMahon, LIB-CP

1972

From April rate increases were again given to all pensioners and those who had missed out in 1971 were given catch up rises.

McMahon, LIB-CP

1973

From May pensions granted in Australia could be paid in any country in which the pensioner lived.

Whitlam, ALP

1974

From March IP could be paid to people living outside of Australia, provided the claimant had become permanently incapacitated in Australia, had left Australia before 8 May 1973 and was in financial need

From November:

  • the requirement that a pension could only be paid where the claimant was of 'good character' and 'deserving of a pension' was removed
  • people, who became permanently incapacitated for work in Australia, no longer had to satisfy a period of residence requirement
  • SEA recipients became eligible for an incentive allowance in lieu of supplementary allowance

Whitlam, ALP

1975

From July the Pensioner Medical Service was superseded by the introduction of Medibank. Pensioners were entitled to the full range of medical services.

Whitlam, ALP

1977

From May pension rates were automatically increased twice yearly. In May they were increased in line with movements in the CPI in the six months to the preceding December. In November they were increased in line with movements in the CPI in the six months to the preceding June.

Fraser, LIB-NCP

1978

From November indexation of the rate of pension was conducted once a year in November in accordance with movements in the CPI between the previous two June quarters.

Fraser, LIB-NCP

1979

From November twice yearly indexation of the rate of pension was restored using the same method that had been used prior to November 1978.

Fraser, LIB-NCP

1980

From November IP was payable to patients in psychiatric hospitals.

Fraser, LIB-NCP

1983

From March Rehabilitation Allowance (ReA) was introduced. It was paid at the same rates and under the under much the same conditions as IP to people undertaking a Commonwealth Rehabilitation Program. ReA could be received during the rehabilitation program and for six months after it had been completed if the recipient was unemployed. A training allowance and living away from home allowance continued to be paid.

Fraser, LIB-NCP

1984

From June the term 'de-facto spouse' replaced the term 'dependent female' in the legislation

From November the pension rates were increased even though the CPI had fallen in the relevant quarters

Hawke, ALP

1985

From September residency requirements were modified for those who were not incapacitated while an Australian resident. A claimant had to have been resident for ten years at least five of which had to be for a continuos period

Hawke, ALP

1987

From July medical impairment had to constitute the major part of an incapacity qualifying a person for invalid pension.

From October residency requirements were changed to exclude temporary residents and prohibited non-citizens.

Hawke, ALP

1988

From June eligibility for SEA was extended to participants in supported employment services.

Hawke, ALP

1990

From April IP could not be granted to people of age pension age.

From November a Pharmaceutical Allowance of $2.50 per week for a single pensioner and $1.25 for a married pensioner was introduced to compensate for the introduction of a $2.50 charge for each Pharmaceutical Benefits Scheme prescription. The allowance was indexed annually and was tax-free.

Hawke, ALP

1991

From January people receiving or applying for IP, SEA, or ReA could be required to supply their tax file number and that of their spouse.

From November:

  • IP and SEA were abolished and were replaced by Disability Support Pension (DSP). ReA was phased out and new entrants to rehabilitation received DSP. The non-medical factors (socio-economic and labour market) taken into account in the assessment of eligibility for IP were no longer considered under the DSP provisions except for people over 55 years of age. Eligibility for DSP depended on an inability to work based on a physical, intellectual or psychiatric impairment of at least 20 per cent as measured by impairment tables included as a schedule to the Social Security Act.
  • an employment entry payment of $200 was paid to DSP recipients who entered the work force.

Hawke, ALP

1993

From September pensioners with partners in gaol or psychiatric confinement were paid at the single rate.

Keating, ALP

1994

From July the Disability Wage Supplement (DWS) was introduced. DWS was a variant of DSP which was paid to people who had gained employment under the Supported Wage System administered by the Department of Human Services and Health. Under this system wages were paid to people with disabilities on the basis of their productivity. They remained eligible for DWS but their income from employment was assessed under the income test.

Keating, ALP

1995

From January refugees applying for pensions were exempt from length of residence requirements.

Keating, ALP

1996

From July pensioners were eligible for advance payments of pension of between $250 and $500 to assist with living or capital expenses.

Howard, LIB-NPA

1997

From September the rate of the single pension was maintained at a level equal to or greater than the annualised original, all males, total average weekly earnings figure (MTAWE). If the rate after indexation in March and September was less than the MTAWE then it was raised to that level. A sunset clause applied to this provision. It expires on 20 September 2002.

Howard, LIB-NPA

1998

From April revised impairment tables for assessing eligibility for DSP were introduced. They were intended to better target DSP to people whose impairments had a significant impact on their overall ability to work.

Howard, LIB-NPA

 

Wives and Carers

Income support for Wives and Carers

It was not until 1943 that an allowance was introduced for dependent wives of invalid pensioners and disabled age pensioners. It was restricted to this narrow group initially because it was targeted at wives who were carers of disabled pensioners. In 1965 those wives who cared for dependent children were given eligibility. The payment was upgraded to a pension in 1972 when the wife's pension was introduced at the same rate and under similar conditions as age and invalid pensions. All wives were given eligibility because of their perceived dependent status without the need to be carers as well. By the nineties dependency based payments for adults were becoming something of an anachronism. Female labour force participation had grown rapidly. Payments were restructured across the board to emphasise individual eligibility as carers or jobseekers. In 1995 wife pension was closed to new applicants. It and other dependency based payments began to be phased out. Over time all remaining wife pensioners will become age pensioners as they reach age pension age and the payment would cease to exist.

Income support explicitly for carers was introduced in 1983, initially for husbands caring for wives who were pensioners with disabilities. Wives caring for husbands were already entitled to the wife pension. Eligibility was soon extended to any live-in carer so that other relatives and non-relatives were covered. Eligibility has gradually been widened since the late eighties so that by 1997 the payment was available for carers of any severely disabled person whether they lived-in or not. The number of carer pensioners has increased as a result of this eligibility extension and the phasing out of payments such as wife pension.

 

Wife's Allowance 1943 to1972, Wife Pension 1972 to 1998

 

Commencement Date

Details

Government at Commencement

 

Original Enabling Legislation

Invalid and Old-age Pensions Act 1943 (No 14 of 1943)

 

1943

From July a wife's allowance was payable to the wife of a man receiving Invalid Pension (IP) or Age Pension (AP) who was permanently incapacitated for work. She had to be his legal wife, be living with him and not receiving another pension. No age, character, nationality or length of residence requirements were imposed. The allowance could not be paid were the husband was in a benevolent asylum or psychiatric hospital. The rate of payment was 15 shillings per week and the pension means test applied. For details of the changes to the means test over time see the chapters on Age Pension or Invalid Pension above.

Curtin, ALP

1947

  • From June:
  • the allowance was payable to 'dependent females'. They were defined as a woman who had lived with a man as his wife on a permanent and bone fide domestic basis without being married for at least three years.
  • the allowance was payable where the husband was in a benevolent asylum provided the wife was at least 50 years of age or had custody of a child under 16 years of age.

Chifley, ALP

1963

From September the rate of allowance was increased to bring it into line with the additional benefit paid to the dependent wife of an unemployment or sickness beneficiary.

Menzies, LIB-CP

1965

From October eligibility was extended to the wife of any age or invalid pensioner where she had a child under 16 years of age.

Menzies, LIB-CP

1968

From September a wife allowance recipient whose husband died received the equivalent of his pension and her own allowance for twelve weeks after his death.

Gorton, LIB-CP

1972

From September wife's allowance was replaced by Wife Pension (WfP) which was paid at the married rate of pension and paid to the wife of an invalid or age pensioner if she was not qualified for a pension in her own right. The pension means test continued to apply.

McMahon, LIB-CP

1973

From December WfP paid to the wife of an age pensioner became subject to income tax.

Whitlam, ALP

1975

From October the de facto wife of an age or invalid pensioner no longer had to have lived with him for three years to be eligible for WfP.

Whitlam, ALP

1979

From October:

  • eligibility for WfP was extended to women in benevolent homes, to women who had no children in their care and to women under 50 years of age whose pensioner husband was in a benevolent home. WfP could not be paid if either wife or husband were in a psychiatric hospital.
  • the standard single rate could be paid to a wife pensioner where she and her husband were indefinitely separated by illness.

Fraser, LIB-NCP

1980

From November WfP was payable to the wife of a pensioner in a psychiatric hospital.

Fraser, LIB-NCP

1981

From November WfP claimants had to be resident in and present in Australia at the time of claim for the pension.

Fraser, LIB-NCP

1987

From October residency requirements were changed to exclude temporary residents and prohibited non-citizens.

Hawke, ALP

1990

From January funeral benefit was replaced by a lump sum bereavement payment equivalent to 14 weeks pension payable to the surviving member of a pensioner couple.

From November a Pharmaceutical Allowance of $2.50 per week for a single pensioner and $1.25 for a married pensioner was introduced to compensate for the introduction of a $2.50 charge for each Pharmaceutical Benefits Scheme prescription. The allowance was indexed annually and was tax-free.

Hawke, ALP

1991

From January people receiving or applying for WfP could be required to supply their tax file number and that of their spouse.

From November women aged less than 21 years without children were not eligible for WfP.

Hawke, ALP

1995

From July WfP was to be phased out. No new grants were made.

Keating, ALP

1996

From July pensioners were eligible for advance payments of pension of between $250 and $500 to assist with living or capital expenses.

Howard, LIB-NPA

1997

From September the rate of the single pension was maintained at a level equal to or greater than the annualised original, all males, total average weekly earnings figure (MTAWE). If the rate after indexation in March and September was less than the MTAWE then it was raised to that level. A sunset clause applied to this provision. It expired on 20 September 2002.

Howard, LIB-NPA

 

 

Spouse Carer's Pension 1983 to 1985, Carer Pension 1985 to 1997, Carer Payment 1997 to 1998

 Commencement Date

Details

Government at Commencement

Original Enabling Legislation

Social Security Legislation Amendment Act 1983 (No. 69 of 1983)

1983

From December a Spouse Carer's Pension (CP) was introduced. It was payable to the husband of a severely handicapped age or invalid pensioner or rehabilitation allowee who required constant care and attention either permanently or for an extended period. The care had to be provided by the husband in person and in the matrimonial home. The husband could only receive CP if he was ineligible for age, invalid or service pension. The rates and conditions were the same as for Wife Pension (WfP).

Hawke, ALP

1985

From November this payment was renamed Carer's Pension and made available to anyone caring for a severely handicapped relative who was an age or invalid pensioner. The care had to be provided by the carer in person and the carer had to live in the home of the handicapped relative.

Hawke, ALP

1987

From October CP was payable only to people resident in Australia. Residency requirements were changed to exclude temporary residents and prohibited non-citizens.

Hawke, ALP

1988

From February CP could be paid to a carer who was not a relative of the person being cared for. The requirement that constant care and attention was necessary was removed. It was replaced by a stricter requirement that personal care in connection with bodily functions (including eating, toileting and medication) or that constant supervision to prevent injury to the person or others was required.

Hawke, ALP

1990

From January funeral benefit was replaced by a lump sum bereavement payment equivalent to 14 weeks pension payable to the surviving member of a pensioner couple or the carer pensioner upon the death of the person cared for. When a single pensioner died one fortnight's payment was payed to their estate.

From November a Pharmaceutical Allowance of $2.50 per week for a single pensioner and $1.25 for a married pensioner was introduced to compensate for the introduction of a $2.50 charge for each Pharmaceutical Benefits Scheme prescription. The allowance was indexed annually and was tax-free.

Hawke, ALP

1991

From January:

  • CP was made available to people caring for a severely handicapped person in receipt of any income support payment. Carers who lived in neighbouring dwellings to those in which the person they cared for lived were also made eligible for CP
  • people receiving or applying for CP could be required to supply their tax file number and that of their spouse.

Hawke, ALP

1993

From July:

  • eligibility for CP was extended to people caring for a person who would have qualified for a DSS payment had they satisfied the residence requirements
  • carers were allowed to cease care for a total of 42 days in a calender year (up from 28) and still be eligible for CP. They were also allowed to travel overseas during the periods when they were not giving caring
  • carers were allowed to participate in employment, education or training for up to ten hours per week
  • carers were allowed to accompany the person being cared for overseas for up to three months without losing entitlement

From September pensioners with partners in gaol or psychiatric confinement were paid at the single rate.

Keating, ALP

1995

From September an employment entry payment of $100 and an education entry payment of $200 were introduced for CP recipients.

Keating, ALP

1996

From March:

  • CP was paid for 14 weeks after the permanent institutionalisation of the person who had been receiving care.
  • CP was payable where the person receiving care was not receiving a social security payment.
  • the carer was no longer required to live in the same house or in an adjacent house to the person being cared for.

From July carer pensioners were eligible for advance payments of pension of between $250 and $500 to assist with living or capital expenses.

Howard, LIB-NPA

1997

From July:

  • CP was renamed Carer Payment.
  • the number of hours that a carer could spend in employment, voluntary work, education, or training was extended from 10 to 20 hours per week.
  • the number of days that a carer may temporarily cease caring in a calender year will increase from 42 to 52.

From September the rate of the single pension was maintained at a level equal to or greater than the annualised original, all males, total average weekly earnings figure (MTAWE). If the rate after indexation in March and September was less than the MTAWE then it was raised to that level. A sunset clause applied to this provision. It will expire on 20 September 2002.

Howard, LIB-NPA

1998

From January the employment entry payment was abolished.

From July:

  • eligibility for CP was extended to carers of profoundly disabled children under 16 years of age.
  • carers were to be able to cease caring for up to 63 days in a calender year and still qualify for CP

Howard, LIB-NPA

1999

The April 1998 'Staying at Home Package' included a proposal to introduce an improved system of measuring the care needs of care recipients called the Adult Disability Assessment Tool from July 1999.

The 1998 Budget included a proposal to allow eligibility for CP when the care recipient is hospitalised for up to 63 days in a calender year and the carer is actively involved in a treatment plan aimed at returning the care recipient to the home of the carer. Eligibility would also continue where the care recipient is hospitalised with a terminal illness. These measures were intended to take effect from July 1999.

Howard, LIB-NPA

 

Table 1. Numbers of Recipients of Selected Pensions, 1910 to 1998

At June

Age Pension

Disability Support Pension (a)

1910

65492

-

1911

75502

7451

1912

79071

10763

1913

82943

13739

1914

87780

16865

1915

90892

20417

1916

91783

23439

1917

93672

28274

1918

95387

31905

1919

95969

34138

1920

99170

37551

1921

102415

40562

1922

105096

41821

1923

107389

42909

1924

113054

47375

1925

117516

49837

1926

126918

53752

1927

133234

57223

1928

139367

60448

1929

145393

64334

1930

155196

68540

1931

172177

73805

1932

183317

77476

1933

176425

77583

1934

187453

78041

1935

197126

81872

1936

206748

85661

1937

215690

88561

1938

224154

91240

1939

232836

94032

1940

272896

63911

1941

276760

64379

1942

275456

65874

1943

267239

63918

Continued

Table 1. Numbers of Recipients of Selected Pensions, 1910 to 1998 (continued).

At June

Age Pension

Disability Support Pension

Wife Pension

Sheltered Employment Allowance

1944

257186

62793

7301

-