Shayne Neumann (Blair, Australian Labor Party, Shadow Minister for Indigenous Affairs) Share this | Hansard source

Pensioners in this country have a right to feel very disgruntled and disappointed with the Prime Minister, because let's have a look at what they are doing: they are taking $2.4 billion out of the pockets of pensioners: 330,000 part pensioners will lose part of their pension and 90,000 pensioners will lose their pension entirely.

They are also doubling the taper rate and that means: if you are a single pensioner and living in, say, Beenleigh, Rockhampton, Maleny, Redcliffe or Caboolture for a start with more than $289,500 in assets, you will have your part pension cut. If you are a pensioner couple with more than $451,500 in assets, you will have your part pension cut.

Not content last year to launch an attack on Australia's pensioners—3.5 million of them—and cut up to $80 a week out of their pension within 10 years and rip away $23 billion from Australia's pensioners, this year they come back with another assault on Australia's pensioners. They come into this place and they quote COTA—Ian Yates does not support this particular measure. They quote Michael O'Neill from National Seniors—they do not support this measure either. Michael O'Neill, president of National Seniors, put it this way:

The public talk was about 'wealthy' retirees. But, in fact, the sums show middle to low income pensioners, with little capacity to adjust, would have been seriously impacted.

That is not supporting the government for what they are doing. This government is about pushing pensioners into poverty. There are 14,250 pensioners in my electorate who will be affected by Tony Abbott's broken promise. There are 5,120 part pensioners in Blair who will be adversely impacted by this $2.43 billion cut.

They can talk all they like over there about the fact that some people do better but the reality is: $2.43 billion is being taken away from pensioners. Some 236,000 part pensioners will have their income reduced by an average of $130 per fortnight—that is a cut of $3,380 per year.

About 91,000 part pensioners will lose their pension entirely, as I said, losing about $190 per fortnight or $4,940 a year. Industry Super Australia has highlighted in their submission to the Senate Community Affairs Committee the progressive impact on new retirees on more modest incomes. Over half of the 700,000 expected to retire in the next decade will have their retirement income reduced. Singles and couples on modest incomes—and it will particularly impact single women on modest incomes.

Those couples who are earning about $62,000 per year will see their retirement income reduced by $4,300 each annually—that is around $112,000 over their retirement period. But for couples further from retirement the government is cutting their part pension and hurting those on low incomes the most. Couples 20 years from retirement, earning as little as $45,000 a year, will lose about $1,500 annually. Just think about that: that is the difference between perhaps going for a holiday, replacing the TV, fixing up the car, thinking about providing food and clothing or giving a bit of assistance in terms of birthday presents or Christmas presents to your grandkids. This is what this government is doing: $1,500 annually. They are voting for it.

There are people all through their constituencies—and, I might add, in the Liberal Party branches—who do not know what is about to hit them. It is going to hit them hard, and if they think they are going to campaign, then I look forward to them handing out brochures in their electorates, in their marginal seats, saying, 'This is what we're going to do for you.' I look forward to those leaflets, the DLs. It is going to be great to see them. Those pensioners and part pensioners know very well what is coming for them. There is a shortfall, and the impact on the aged care sector will be massive. Aged Care Services Australia says the modelling indicates that those people going into aged care will be more severely impacted than other pensioners. So, the government should rethink this disgraceful attack on middle Australia and low-income earners.

See this speech in context