Damian Hale (Solomon, Australian Labor Party) Share this | Hansard source

I rise today to make my contribution to this debate on the Social Security and Veterans’ Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009. The passing of this legislation will mean that, from 1 July this year, the adjusted taxable income test for the Commonwealth seniors health card will be expanded to include income from a superannuation income stream with a taxed source, income that is voluntarily salary sacrificed to superannuation and the net financial investment losses. The proposed changes will ensure that CSHC holders with similar levels of income will have the income test applied to them in a similar way because the test that is currently applied does not treat sources of income the same way, and that is what this legislation is all about. I echo what other colleagues have said before: this legislation will treat similar sources of income in a similar way. The change will provide consistency when applying the income test for cardholders. This legislation will bring the entitlement and qualification for the Commonwealth seniors health card into line with the age pension.

The heart of this legislation is about refining the adjusted taxable income test to make it fairer. It is not about disadvantaging senior Australians. Currently, the rules say that if you receive income from a defined benefit scheme—for example, Comsuper or some of the state government funds—it is treated as income. Until recently, my father did a bit of relief teaching. Other seniors I know help out at local shops. When it comes to qualifying for the concession card, the money they earn is counted as income. But income from private retail or industry based superannuation funds or from account based pensions is no longer taxable, so it is not counted as income when it comes to qualifying for the health card. There is a set of rules for one and a different set of rules for another. How is this equitable? How is it fair? We are adjusting the income test. The change means that the seniors health card will be better targeted to those in need of government assistance.

It is worth noting the background of the Commonwealth seniors health card, because those opposite would like to suggest that we on this side of the House are not supportive of older Australians. The Commonwealth seniors health card was introduced in 1994 by the Keating Labor government. The intention of the card was to help those who did not qualify for the age pension due to a lack of residence qualifications or due to the value of their assets. Currently the card is available to all Australians over pension age—65 for men and 63 years and six months for women—who are not receiving income support payments from Centrelink or the Department of Veterans’ Affairs and who have adjusted incomes of less than $50,000 a year for a single person $80,000 a year for couples.

There are obviously a number of benefits you receive if you qualify for the Commonwealth seniors health card. I know it is a good thing for the seniors in Solomon and around Australia to have one because the benefits include discounts on prescription medicines through the Pharmaceutical Benefits Scheme, bulk-billing with participating doctors and reduced out-of-hospital medical expenses above the threshold set through the Medicare safety net. The CSHC also provides access to the seniors concession allowance, which is a quarterly payment to help with utility expenses. The telephone allowance is a quarterly payment that assists with telephone bills or internet connections. In many cases, the card also gives access to local, state and territory government and private provider concessions such as discount transport, education and recreation.

The latest ABS in census data show that the 12 months to 30 June last year the number of people aged 65 years and over in Australia increased by 67,600—a 2.4 per cent increase. The proportion of the population aged 65 years and over increased from 10.8 per cent to 13.3 per cent between 30 June 1988 and 30 June 2008. All states and territories experienced growth in their population of people aged 65 years and over. In fact, out of all of Australia, the Northern Territory experienced the greatest increase in the number of people aged 65 years and over—a 6.6 per cent increase. In Solomon, we have well over 5,000 vibrant and active seniors.

As we all know, a strong community is one that supports its members and values the variety of contributions that each of them makes. When older people are fully involved in the community there are extra benefits, including passing on cultural knowledge and building strong intergenerational relationships. Talking of strong communities, I will take this opportunity to thank and congratulate the NT finalists in this year’s Australia Day senior Australian awards. Julia Battison, for all her hard work over the years at the Palmerston markets, along with fellow Territorians Coralyn Armstrong, Max Tate and Bryan and Kathy Massey were announced winners of the awards. Lois from the Rapid Creek shops is a friend of mine. She sells socks. Lois is a beautiful lady and I buy my socks from her which supplements her income. I can tell you, Mr Deputy Speaker Adams, I can get you some good quality socks from Lois.

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