Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to his Treasurer’s 30-minute budget speech, which mentioned pensioners only once. Will the Prime Minister commit to delivering all this year’s windfall tax gains on the rocketing price of petrol back to Australia’s age pensioners?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Australia’s pensioners, carers and those on retirement incomes are doing it tough because of the impact of cost-of-living pressures coming off the rising price of oil, the rising price of groceries and other costs as well. That is why the government has been keen in the context of this budget to allocate an additional $5.2 billion for pensioners over the next five years. Firstly, seniors will be $900 a year better off in 2008 as a result of this budget. That means that there will be not only a $500 bonus but, in addition to that, a commitment to increase the utilities allowance from $107 per year to $500 per year. Secondly, when it comes to carers, through an additional allocation of $1.1 billion over the last budget, those carers in receipt of both the carers payment and the carers allowance will receive up to $2,100 a year in addition to what was received previously. Thirdly, those receiving disability support pensions will now be receiving the utilities allowance of $500 a year for the first time, and that results in an additional $1.3 billion compared to the previous budget.

I make those points very clearly because these represent net additions to what was provided by the previous Howard government in each of these areas. We on this side of the House are acutely conscious of the need to make sure that retirement incomes policy in the future enables those on pensions in particular to properly plan for their retirement. That is why the Henry commission of inquiry has a reference which specifically deals with retirement incomes policy. We await the outcome of their report, which is due in February next year.