Robert Oakeshott (Lyne, Independent) Share this | Hansard source

I rise to express concerns about the Social Security and Veterans’ Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009. Without speaking about the conceptual issues of the rights and wrongs of means-testing or access to medical services in regional areas, my argument for government to consider and reflect upon is one of timing, with regard to the global and national economic circumstances that we have seen flood this parliament and the lives of many over the last three months. Independent retirees and those who have access to Commonwealth seniors health cards presently are not immune from the rapid changes that we see in so many sectors.

In many ways the timing of this change could not be worse. We see a triple whammy at the moment of low interest rates, a significant fall in share market investments and a focus—in what I consider to be a welcome fiscal stimulus package—on the borrowing strategies rather than the savings strategies. Those who are living off savings are, more than anyone, feeling the full impacts of the triple whammy of the economic changes that are rippling throughout the world. Added to that—in what we could call a quadruple whammy if this change comes through—is the timing of this bill, which is being brought forward in the middle of this year.

It would be unfortunate if government did not consider giving some relief and showing some grace and good faith to those who have been living off savings and to those who have, after the last six months of significant economic change, already lost a substantial amount of the savings they live off. Since these considerations were made in the budget conditions of last year, the circumstances are widely acknowledged by the Treasurer and the executive to have substantially and fundamentally changed, particularly in the last six months. My request—slightly different from everyone else’s—is for an act of grace and consideration by government with regard to the timing of the implementation of these changes.

If there is no change and we are left with the quadruple whammy of low interest rates, the fall in share market investments, the focus in government stimulus on borrowing strategies rather than saving strategies and then this coming in as well, it will lead to a fifth concern faced by many—that is, it might send to some the message that they are unwanted participants in Australian life. I would hope that is not a message that anyone in this place would want to send to the aged community in Australia, many of whom are living on the North Coast of New South Wales and who all play a valuable role in life today. Many people talk about their valuable contributions in the past but many of them are active, healthy and engaged members of communities right now. Many are suffering a triple whammy—hopefully not a quadruple whammy, and hopefully not a quintuple whammy—delivered by government under the current circumstances.

In the short time that I have to sum up—and I know it is unusual to read out letters in the parliament—I would like to read out a letter I received from Ken Smith from Bonny Hills. It is a short summary but it is an example of the letters received by our office and has been picked out because I think it sums the issue up incredibly well. He says:

I am very disturbed to read about the possible changes to the eligibility for the above card. Nowhere are the changes clearly outlined nor did the Government signal these changes when seeking election in 2007.

My concerns are:

a. these changes, if correct, completely change present legislation i.e. superannuation is now included. Not only is it included but that previous allowances will not be allowed.

b. the upper limit of $80,000 has not been indexed since its introduction.

c. investments made since 2007 to get any benefit of higher interest rates will now hurt any application to retain their card. Especially now that interest rates and dividends are falling, recipients for the Health card will have to wait 12 months to regain and or make application even though fully meeting the criteria for the 2009-10 financial year.

d. the government is not making any allowance for a “grandfather clause” i.e allowing those presently receiving the card to have a period of time to revise their finances.

e. I am in receipt of a NSW State Superannuation pension which is fixed annually subject to indexation every September. Those people on an allocated pension can vary the amount withdrawn to stay within the proposed upper limit. Both people are pensioners but are treated differently under these proposals. Is this fair and equitable?

f. these changes are being made retrospective based on the 2008-09 income tax return, again unfair and unreasonable?

g. pensioners such as us will not receive any funds from the $42 billion stimulus package so this could become a double whammy for me.

I raise that not only as an example of one person expressing their concern but also as an example of the concerns felt by many. Local branches of independent retiree groups in the Manning and the Hastings areas have also expressed similar concerns. I therefore ask the government to reconsider this legislation, particularly in the light of current economic circumstances. I ask that of the minister, the cabinet and the executive. In the light of what we have seen in the previous legislation that just passed through this parliament, in the light of $42 billion of fiscal stimulus packages that we have seen pass through this parliament, in the light of the economic circumstances, if there is no window of opportunity or window of grace for the independent retiree and aged communities to continue to have full access to health benefits through the Commonwealth seniors health card then we are a sadder place because of it.

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