Ken Ticehurst (Dobell, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Minister for Families, Community Services and Indigenous Affairs. Would the minister advise the House on what steps the government is taking to increase the real incomes of older Australians? What is the government doing to ensure that these gains are sustained?

Mal Brough (Longman, Liberal Party, Minister Assisting the Prime Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I thank the member for Dobell for his question. He is the member for an area which has obviously seen a huge growth in the older population as people move there for the lifestyle. Affordability is a very important issue to him and his constituents. If the coalition government had not been elected, if the coalition government had not changed the indexing of pensions to twice a year and linked pensions not only to the CPI but also to 25 per cent of male total average weekly earnings, a single pensioner currently residing in the electorate of Dobell would have $66.20 less per fortnight in their pay packet. That is what they would have to survive on without that policy change initiated by the Howard government. For a couple that is $111.40. This is the real measure of good strong economic management and real policies that go to addressing the needs of all Australians, not just those in the workforce—$111.40 is what it means today.

Of course, when we are able to, the Howard government ensures that all Australians benefit from a strong economy. In June of this year pensioners received, per individual, $500 in a one-off bonus—the equivalent of $10 a week on top of the CPI increase in their pensions. To a couple that meant $1,000.

I recently heard reports of pensioners saying they have to make a choice between putting food on the table and paying for electricity, so I asked some pensioners in my electorate how much they pay for their electricity each quarter. They said that it was around $160 a quarter. Basically, for a single pensioner that means this bonus on its own will virtually pay the year’s electricity bill, or it will go a long way towards paying for the registration of the motor vehicle—those big lumpy payments. These are things that are capable and possible when you actually listen to and react on behalf of the seniors who have built this economy over their working lives, and who today do not necessarily benefit directly from tax cuts but do need that benefit that comes from such things as the bonus.

That was in June. In September, with the changes that the Treasurer has made to the superannuation scheme, some 300,000 people will have their pension increased as a result of the changes to the asset test. That is the taper rate. That is more money on top of the $500 and the 25 per cent of MATWE that directly benefit them. In addition, for the first time no tax will be paid on those superannuation payments. That is a wonderful thing and it will enable people to improve their lifestyle.

I was also asked what the government would do to sustain these measures into the future. It goes without saying that if we do not have high employment, strong productivity and real wages growth we cannot do that, and that is what the Howard government is delivering. It is doing that in the face of what Labor is delivering today to pensioners. Labor state and territory governments have increased water and electricity charges—hitting the hip pockets of our pensioners. The Tasmanian government will impose a new ambulance fee on all Tasmanians, including pensioners, regardless of whether they use the service. That government has taken its lead from the Queensland government, which did that a few years ago. That is what Labor is doing in Tasmania.

What is Labor doing in government in New South Wales? It is imposing a 15 per cent booking fee on CountryLink train fares and it is suggested that it intends to reduce the travel concession for pensioners. That is what Labor does in power. It is doing that in an economy in which the coalition is saving money and providing concessions. The only reason that the coalition government is providing utility allowances directly to pensioners is that state Labor when offered a partnership to provide this assistance to pensioners refused to help. It did not refuse to help the Howard government; it refused to help pensioners. The Leader of the Opposition and the shadow Treasurer live a lie by making fraudulent statements about grocery and fuel prices. I assure the pensioners of Australia of one thing: you cannot talk those prices down, but bad policies can drive them up, and that will affect the prices that pensioners pay. They can rely on the coalition government to ensure that they benefit from a strong economy, that downward pressure is placed on the price of things they need and that it will deliver for them. They should look at what Labor has delivered at the state level to see what it will deliver in government if it ever gets to the Treasury bench here in Canberra.