Rebekha Sharkie (Mayo, Centre Alliance) Share this | Hansard source

I rise to support the Social Services and Other Legislation Amendment (Supporting Retirement Incomes) Bill 2018. It should come as no surprise that, as the representative of the oldest electorate in South Australia, I am more aware than most of the needs and concerns of older Australians.

There are two parts of this legislation that I would briefly like to touch upon: the increase in the work bonus and the expansion of access to the Pension Loans Scheme. The proposed increase to the work bonus from $250 to $350 is an imminently sensible step that recognises the value of not penalising pensioners for remaining active and undertaking small amounts of employment. For example, there are pensioners in my electorate who deliver local newspapers in order to keep active and healthy. There are retired teachers who do a bit of tutoring after school, helping children and earning a little extra money on the side for their efforts. We know that those pensioners have such a wealth of knowledge and experience, and I think it's critical that we encourage older Australians to keep their hand in, if they feel that they would like to do so, to teach and share with the next generation. The current level of the work bonus has been eroded by inflation to the point that it is now starting to penalise this type of piecemeal work. The pensioners in my electorate will be very pleased that this legislation is being progressed.

I also welcome the extension of the work bonus to apply to income and to work from personal exertion, such as through self-employment and contracting or consulting work. However, I would encourage the government to consider indexing the work bonus such that the balance of the bonus does not continue to erode over time. Otherwise, the parliament must periodically be required to raise the bonus every couple of years by slow legislative means.

Secondly, I welcome, albeit cautiously, the expansion of the Pension Loans Scheme so it becomes available to all Australians of age pension age. The Pension Loans Scheme is a voluntary, reverse equity mortgage that offers older Australians an income stream to supplement their retirement income. It is only fair that access to this scheme is universal to all Australians of age pension age and provides everyone with the same financial support and opportunity. However, I will keep a watching brief over the scheme to ensure that there are no unexpected adverse outcomes of its expansion.

I think it's also timely to talk about the inadequacy of the pension, particularly if you are single and renting. Half-a-million older Australians rely solely on the age pension for income. Almost a third of them are living in poverty. They suffer substantial deprivation—going without food and heating, ignoring the need to see medical specialists and skipping medications—to make ends meet. Some are missing food in order to ensure that they can manage a visit to medical professionals. The average fortnightly expenditure on housing for renters was over $300, whereas homeowners spent less than $40 on repairs and remaining mortgage payments. The difference is vast. Owning your own home if you are a retired and older Australian makes you $240 a fortnight better off. These figures are from 2015, and we know that rents have increased and the pension has not kept in line with that.

So what gives? Last Friday, at the opening of my Victor Harbour permanent satellite office, I chatted with a gentleman who needs new dentures but can't afford them. Yes, he's on the state government list for public dental health, but it has been years. He's using a form of glue in his mouth to keep in the broken dentures that he has, and it is making him sick. It's causing him ulcers in his mouth. He was so distressed when I talked to him. No older Australian in our community should have to experience this. Older Australians on the pension are going without meals so they can have their medications and are going without heating so they can cover other bills, particularly those who are renting. It is important that in this place we do all we can to support every older Australian.

I believe that we need to increase the pension and provide those on the pension with a dental voucher, similar to the one the government provides to families who are recipients of family tax A. I believe that this is a policy that is needed—and needed so much that I've asked the Parliamentary Budget Office to provide a costing for the implementation of a dental voucher system for pensioners. I intend to share those Parliamentary Budget Office costings with the parliament in the hope that one of the major parties takes this up as an election promise. We know there is a strong correlation between poor oral health, and poor nutrition and poorer primary health outcomes. Helping pensioners to visit the dentist would improve health outcomes overall.

I would like to acknowledge the Benevolent Society for their work in the Fix Pension Poverty campaign. It is not something that makes front-page news, but it should be. We should be treating our older Australians better. Returning to this bill, and in closing, I welcome and support the speedy passage of this bill, which I believe will be of great benefit to older Australians, but I think we can do much, much more.

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