Don Randall (Canning, Liberal Party, Shadow Cabinet Secretary) Share this | Hansard source

I wish to refer to the Pension Bonus Scheme, which was introduced by the former coalition government in 1998. The Pension Bonus Scheme pays a tax-free lump sum to people who defer claiming their age pension and continue to work. It is a voluntary scheme and, to be eligible, people must register with Centrelink within 13 weeks of reaching the eligible pension age of 63 for women and 65 for men. It gives people who are nearing retirement, and who will be eligible to receive an age pension in the future, a viable option of continuing to work and increase their retirement nest egg. It offers people choice and opportunity. There are almost 13,000 people receiving the age pension in Canning. However, I have had some constituents who have approached me with a couple of glitches in the scheme that preclude them from receiving this bonus. Under the Social Security Act 1991, if a person receives the age pension at any time prior to registering for the scheme, or after they have registered, they are then not eligible for the payment. This is a steadfast rule which, on the face of it, seems to be fair enough because of the blanket rule. But, because of this blanket rule, there is no discretion to be exercised in extenuating cases.

Mrs Lonergan of Halls Head claimed the age pension in 1995 for two months. The scheme was not introduced until 1998. She applied and registered and was advised that, if she continued to remain in full-time employment for five continuous years, she would requalify for the bonus. She remained in full-time employment for 12 years and was then informed that she was not entitled. She was penalised, despite the fact that the scheme was not even introduced when she briefly received the pension. Mr and Mrs Brereton of Armadale registered for the scheme in 2003. However, in February 2003, Mr Brereton became redundant and had to apply for income support payments. Mr and Mrs Brereton initially applied for unemployment benefits but, due to their combined earnings for the year to that date, they were advised that they would not qualify for any unemployment benefit; however, they were told that they could receive income support payments by way of the age pension. The first payment of the age pension was payable to them on 1 April 2003 and, by 24 April 2003, Mr Brereton contacted Centrelink to advise that he had successfully gained employment, commencing on 28 April 2003. Centrelink cancelled their income support payments, as their combined incomes had placed them over the threshold. In other words, the 27 days that he received the pension had made him ineligible.

I ask that the government look at some ministerial discretion in these matters where people want to stay in the workforce—and, with our current unemployment levels, we do need older, experienced people in the workforce. It is a good scheme and I ask the minister to support these arrangements. (Time expired)

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