Ms Catherine King (Ballarat, Australian Labor Party) Share this | Hansard source

I note the member for Moncrieff again at the table interjecting. The opposition showed no interest whatsoever in these issues. In fact, when I tabled the Family Watch report, which clearly showed how concerned families in Australia were about grocery and petrol prices, the then government ridiculed it—‘That’s not an issue, not a problem at all.’ Families in fact have never been better off, we were told. So I would like to hear what the opposition proposes to do.

In the 11 years of the Howard government the average home rose in cost from four times the average wage to seven times the average wage. A three-bedroom rental has risen by 82 per cent whilst vacancy rates have been slashed in half. This is the legacy of the Howard government, which chose to ignore this crisis. The crisis that has escalated over a decade cannot be fixed overnight, but we must begin the process of alleviating this crisis right now. Labor has done this by developing policies implementing a First Home Saver Account, a Housing Affordability Fund, a National Rental Affordability Scheme and a better approach to land release. This will begin immediately to relieve the strain on those who have up until now believed that homeownership was a pipe dream.

As well as the Rudd Labor government taking action on the cost of groceries, petrol and housing, the bill that we are debating today will take the action necessary to provide assistance to 2.7 million Australians who are doing it tough.

I am especially pleased to lend my support to increasing the rate of telephone allowance from $88 a year to $132 a year, specifically for those who have an internet connection. Whilst this increase will be meaningful financially, it is also meaningful in terms of what it actually signifies for people. Extending this payment to recipients of disability pension and carer payments is a natural extension of this allowance. It acknowledges the benefits of internet use and the growing use of this technology amongst older people and people with disabilities and carers. For people with disabilities the internet can be a link to a world that may not be able to be accessed any other way. For those in the community with mobility issues the internet can be used as a way of dealing with day-to-day activities that can prove challenging—ordering groceries, online shopping and keeping in contact with loved ones. For those of us who have communication or anxiety issues the internet can be a safe form of connecting with others. Disability specific chat rooms have flourished, and this shows how accessible these sites are for those who are unable, for various reasons, to link into face-to-face support or social groups.

The internet is also a powerful learning tool, giving many people access to a world that may not be able to be accessed any other way. It is no longer impossible to have a significant and important relationship with someone who shares the same challenges, interests or hobbies who may live halfway around the world. For carers it can be a connection to others who may be experiencing the same challenges or a link to a crisis service when it is needed the most. It can be a way of keeping in touch with friends when it may be impossible to get out of the house. It can be an instant connection to someone when you feel that you are all alone. It can be a way to relax when the opportunity to go out may not be available. With families often scattered across the country, older citizens can now keep in touch with their children and grandchildren. I must admit that I took great delight when I met with a very young 88-year-old who was communicating with her grandchildren in America for the very first time via the internet in one of my local community internet places, which was a wonderful thing to see.

With increasing technological sophistication, and a soon to be much improved broadband network, grandparents can send and receive photographs, video footage and emails from their loved ones, their children and their grandchildren. This increase in telephone allowance for the purpose of assisting with the costs of an internet connection sends the message loud and clear that Labor is about keeping families connected to each other and keeping everyone connected to the community. It provides real assistance to those who need it the most. It acknowledges the modern world that we live in, recognises the modern challenges and provides a modern approach to meeting those challenges.

Those in our community who receive a disability support pension, carer payment, wife pension, widow B pension or bereavement allowance, and those in our community who are under qualifying age and receiving a service pension or income support supplement, will for the first time, under this legislation, be entitled to a utilities allowance. This is long overdue. Labor recognises that these groups in our society are doing it tough and are entitled to some additional assistance. Labor recognises that the additional allowance—increased from $107.20 to $500—is also long overdue. These community members have been most patient as they have watched the cost of petrol skyrocket, the weekly groceries bills add up and the costs of gas and electricity continue to climb. This is the legacy of the previous government, which was obviously deaf to the calls from those on low fixed incomes and their advocates that budgets were strained to breaking point. Labor did not dismiss those calls. We listened carefully and then we got moving. We heard that quarterly bills added a great deal of stress at that time in many households, which is why the increased utilities allowance will be paid quarterly—at the time that bills are due. That just makes sense.

This amending bill also increases the annual rate of seniors concession allowance from $208 to $500 for all eligible self-funded retirees. The original concession allowance was introduced in December 2004 and has, to date, been paid twice a year. This bill ensures that seniors concession allowance is paid quarterly, along with the utilities allowance. This timing of the allowances will provide the maximum benefit for this payment, alleviating the difficulties of finding the money to pay the bills that all seem to arrive at once.

One of the things I would like to talk about within the context of this bill is the government’s plan to develop a new way of indexing the pension. This government intends to introduce legislation later this year that will change the way pensions are indexed, providing for a real formula that is based on the real prices that consumers are exposed to. The formula will take a basket of goods that reflects what pensioners actually buy—meaning more emphasis on utilities and food and less emphasis on whitegoods—and add this as a new element to the indexation formula. The end result will mean that the age pension will increase according to the basket of goods, the overall CPI or 25 per cent of male average earnings. Whichever is the highest will determine the new pension rate. This is another election promise that Labor is preparing to deliver.

The speed with which Labor has got to work shows our commitment to those who are often silenced through their circumstances. These are the people that Labor has traditionally supported and, now in government, we are continuing that tradition—those on low or fixed incomes who continue to contribute to society despite the challenges that life has presented to them, those who provide the caring that makes our country a richer place, those who were willing to sacrifice their lives for our freedom, veterans and those who have worked hard all their lives and who now care for grandchildren or devote their time to volunteer activities in our communities. I am very pleased to stand here today, on behalf of all those people in my electorate who will benefit from these changes, and commend the bill to the House.

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