Jane Prentice (Ryan, Liberal Party) Share this | Hansard source

I rise today to speak on the Social Services and Other Legislation Amendment (Seniors Health Card and Other Measures) Bill 2014. Hundreds of thousands of Australian seniors have worked hard for the most of their lives. They have been wise with the allocation of their income, investing it sensibly and taking responsibility for their finances, ensuring that they and not the government fund their own personal retirement. We need to recognise this by looking after their own retirement needs. Self-funded retirees save the Commonwealth budget considerable pension costs. However, these self-funded retirees are being disadvantaged for their lifetime of hard work and the significant contributions they have made to the success of our nation.

The Commonwealth Seniors Health Card was introduced in July 1994, providing access to concessional prescription medicines under the Pharmaceutical Benefits Scheme, free hearing aids and certain free basic dental services. The card was available to people of age pension age who were not eligible for the Age Pension for reasons other than the income test—for example, insufficient length of residence or high asset holdings. The original purpose of the Commonwealth Seniors Health Card was to provide assistance to retired persons who were on low income. When introduced, the income limits for the CSHC were the same as for the Age Pension, so that the vast majority of retired persons issued with the CSHC were those who were asset rich but income low, such as farmers. In 1996-97 there were 35,244 cardholders and by 1997-98 there were 42,461 cardholders.

In the 1996 election the coalition promised to extend the income test thresholds and use taxable income, rather than income as assessed for the Age Pension, to assess eligibility for the Commonwealth Seniors Health Card. Liberal government minister Senator Jocelyn Newman said in her 1998 Budget press release that this recognised 'the important contribution made by people who save for their own retirement'. These changes were implemented from January 1999, and by August of that year an additional 163,000 people had become cardholders. These changes, and a further increase to the threshold in 2001, changed the target group for the card from very low-income self-funded retirees to middle-income retirees.

I am shocked and appalled to find out that those opposite are opposing this bill today, because it was Labor who brought in the Commonwealth seniors health card in 1994. One could point out that they have neglected their policy since then, relying on the subsequent Liberal governments to fix up and improve the policy by assessing it differently from the age pension and allowing hundreds of thousands more self-funded retirees to access the card and by also increasing the threshold. Instead, those opposite refused to fairly index the pension in their previous two chaotic terms of government. Labor once again left it up to this side of the chamber to give a fair go to those people who saved for their retirement.

The purpose of this bill is to implement the government's election commitment to all Australians, regardless of their financial positions, to index income thresholds for the Commonwealth seniors health card. Currently, to qualify for the seniors health card a retiree must satisfy the senior's health card taxable income test. These thresholds, however, have not been amended since their introduction under the Howard government in 2001, remaining at $50,000 for singles and $80,000 for couples. The past 13 years, however, have seen a drastic increase in the cost of living, with $50,000 now being a considerably lower amount than it was in the Howard years.

As people grow older the wear and tear of a long life makes them more susceptible to a wide range of conditions and health problems. The majority are minor ailments such as arthritis, low bone density, and vision and hearing problems. But others, like diabetes, hypertension, respiratory problems and dementia, are serious issues that require regular medical treatment and medications to control. This bill means that 30,000 additional senior Australians will have access to discounts on Pharmaceutical Benefits Scheme medicines, access to bulk-billed doctor appointments, at the discretion of the doctor, and access to cheaper out-of-hospital medical expenses through the Medicare safety net.

I have received a great deal of correspondence from my elderly constituents expressing their support for this bill, pleased to see the extra support the Commonwealth seniors health card will provide and the relief to their cost of living. I am proud to stand on this side of the chamber, where we are delivering on our election commitment to self-funded retirees and continuing our legacy of supporting those Australians who have saved for their own retirement. I commend this bill to the House and I condemn Labor for their mean-spirited opposition.

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