Andrew Wilkie (Denison, Independent) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, I met recently with Darrel Gangell, who has now lost his part-pension and must live on just $26,000 a year from his superannuation. This is barely above the poverty line. I have also met with defined benefit superannuants who have also had their pensions slashed and are also struggling. Prime Minister, the government is doing no better with aged care, despite my repeated representations, and in particular it has gutted funding for residential care to the tune of $1.2 billion. Prime Minister, what will you do to end this ruthless campaign against older Australians?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for his question. Every government has a solemn duty to care for our elderly; it is a duty or responsibility that we take very seriously and always have done. We are spending $45 billion this financial year supporting age pensioners, as we should. In 2015 the government made difficult decisions in regards to the age pension. As you know, they were legislated in June 2015. They were decisions made in the national interest to protect both current and future generations of Australians and to ensure that the pension is both available and sustainable.

In 2007 when the government was banking surpluses and had billions of dollars in the bank, the asset test was made more generous but that decision was changed, as I said, around 18 months ago in the middle of 2015. Times had changed and we had to live within our means. That was the tough decision that was taken by the coalition government; it was supported by the Labor Party and it passed through the parliament. In the 2016 election there was support from the government, from Labor and the Greens for this change. Despite the Labor Party now complaining about the measure, they have no plans to do anything about it.

I am not aware of Mr Gangell's full circumstances but, if the honourable member wishes to raise them with me or with the minister, we can certainly look into them. The changes only affect individuals with significant levels of assets other than the family home. I am sure the honourable member is aware of that. With an ageing population and significant and growing pressure on the budget, the expectation is that people will draw down on their assets to support themselves in retirement where they can. So pensioners would have to draw down a maximum of about 1.8 per cent of their assets to make up for the loss of their part pension.

We are working hard to give Australians greater choice in aged care with funding growing each and every year. The minister announced a very significant reform this week of Increasing Choice in Home Care, which puts funding in the hands of consumers for the first time. It gives more people more control over the delivery of their home-care services, allowing them to choose the best service provider for their needs. So we are grateful for the contribution of their Australians have made to our country throughout their lives and we will always work, and always have worked, to ensure older Australians are treated with dignity and with respect.