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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 |
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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 |
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:
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:
|
Curtin, ALP |
|
1944 |
From April cost of living adjustments of the pension rate were discontinued. |
Curtin, ALP |
|
1947 |
From July:
|
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:
|
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:
|
Holt, LIB-CP |
|
1968 |
From September:
|
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:
|
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:
|
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 |
|
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:
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:
|
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:
|
Curtin, ALP |
|
1942 |
From July:
|
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:
|
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:
|
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:
|
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:
|
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:
|
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:
|
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 |
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 |
|
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:
|
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:
|
Hawke, ALP |
|
1993 |
From July:
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:
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:
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:
|
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 |
- |