Meryl Swanson (Paterson, Australian Labor Party) Share this | Link to this | Hansard source

by leave—On behalf of the member for Jagajaga, I move:

That this House:

(1) welcomes the recent increase in pensions, following the largest indexation increase in 12 years.

(2) notes that in a time of cost of living pressures this increase is a welcome support for pensioners across Australia.

(3) commends the commitment of the government to support older Australians, who have worked hard all of their life and built this country; and

(4) acknowledges that it was the previous Labor government that commissioned a review into pension payments, and ultimately adopted the recommendation to upgrade indexation requirements to support greater pension increases.

I want to commend the member for Jagajaga for bringing on this motion. It really does need to be recognised that this pension increase has happened and that it has happened at a time when lots of things are going up. Of course, something that this government is working very hard to do is provide support for all of those members in our community who need support at this time. Harking back a little longer than 12 years ago, I think it was 1909 when the very first pension payment was actually made. Interestingly, it was a Labor government that oversaw the commencement of what was then referred to as the old-age pension in 1909.

If we fast forward over that 100 or so years, the pension has been around now for a long time, but we haven't always been good at indexing it the way it should've been, and I am so pleased that this government has finally stepped up to that task. Pension rates increased by $38.90 a fortnight for singles and $58.80 a fortnight for couples combined. As I mentioned a moment ago, the Albanese government is proud to continue this very long-held tradition of support for older Australians. We acknowledge that they work hard all their lives, they pay their taxes and then they continue to make a contribution to our economy and our society.

It's rather interesting—the member for Parramatta has just left the chamber—that I was here with him for the jobs summit. We were having a conversation about older Australians. These days, 50 is the new 40 and 60 is the new 50. People do seem to be staying younger and more vibrant for much longer, thanks, in part, to medical technology, but also we now have more at our disposal in terms of health, nutrition and exercise research. We know how to look after ourselves perhaps a little better than they did in 1909, with the miracle of modern medical technology.

I made a comment to the member for Parramatta on that day of the jobs summit that older Australians make fantastic employees and that, at a time when we are struggling to fill skills shortages and gaps, it would be wonderful if we could incentivise more older Australians to work. That's why I am particularly proud that, in fact, that very afternoon the Treasurer made an announcement. The member for Parramatta and I were having a bit of a joke. He said, 'You speak and it's so.' But, quite coincidentally, that announcement was made that older Australians on a pension would be able to increase their income-earning capacity. I think that's such a fantastic thing.

Older Australians not only bring a wealth of experience when it comes to work but I think they often bring a perspective. They have had not only all of that work experience but, more broadly, life experience. That's why I was delighted to see that pensioners could, in fact, earn more money under our government, and I'm particularly proud of that. In addition to the indexation and my support for this motion, and recognising the recent indexation and increases to government pensions, we know our country has been built by the hard work of older Australians. I particularly want to acknowledge the 21,000 age pensioners that I have in my seat of Paterson. It's such a great contribution that they have made.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

Louise Miller-Frost (Boothby, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

I join the member for Paterson in welcoming the recent increase in the pension. However, given that this coincides with some of the biggest cost-of-living increases in decades, the increase is negligible. Pensioners in my northern Tasmanian electorate of Bass are feeling the pinch, so the self-congratulation seems a bit premature.

Whether at the supermarket, at the petrol station or turning on the heater—in Tasmania we're running our heaters well into December—there's a shock no matter where you turn, and, for anyone on a fixed income, the challenges are increasing daily. For many on pensions, whether it be an age pension or a disability or carer pension, they're also faced with a sharp increase in rental prices. Rental prices have increased from around five to almost eight per cent across the northern Tasmanian region, including in areas as far out as Scottsdale, which has seen rental prices increase by an average of 7.2 per cent, and in George Town, where I live, which has seen an increase of 5.9 per cent. These are typically areas where people may choose to live due to lower cost of living, but, with rental increases and significantly higher fuel costs, they're left stuck in a situation where it's becoming increasingly difficult to meet the cost of everyday essentials.

When the budget was handed down last month, the first message I received was from a constituent asking me if they were missing something, as they just couldn't see what measures were put in place to assist them through an increasingly difficult financial period. I've also received correspondence from age pensioners who are feeling despondent over the battle that they're facing with rental increases and juggling chronic illness. I have said time and time again that governments, particularly in times of crisis, need to respond to situations as they evolve. I think all sides of politics have the best intentions, but I think that the current government have missed the mark when looking at the response to the current cost-of-living crisis facing so many Australians, particularly pensioners. It's what I'm hearing over and over again when I'm out in the community.

I do want to acknowledge that there's a changing economic situation that we're facing, and that governments have to, of course, weigh up a number of factors when it comes to expenditure. But, for all the posturing, particularly during the 2022 federal election, there is a failure to deliver solid assistance where it's needed most. Next year will be a particularly difficult one for many, with electricity bills expected to soar 20 per cent and a further 30 per cent next financial year. While some can absorb the cost by making adjustments here and there, many have legitimate concerns about how they're going to meet increased costs when there's already very little wiggle room. Christmas is just around the corner, and by then, Treasury is tipping annual inflation at 7.75 per cent. The Launceston City Mission has stated that demand for services is at its highest in a decade, acknowledging that inflation and a tough rental market is putting a strain on the budget of those seeking its services.

One Tasmanian pensioner, Suzanne, told local ABC that to make ends meet, she's begun to ration her food, and limits leaving her home. She said:

We now only go out when we absolutely have to because of the petrol prices, and if we have to go out, we make sure we do more than one thing.

We don't put our heating on until four or five o'clock, so the house is quite cold all day, and you go to bed early because you cannot afford the heating.

I am anxious, depressed, worried. It's not the life that I planned … I just never expected at this time in my life, that I would be living like this. I used to buy salmon every so often and now I don't do that. There's no special treats any more because you just can't do that. Everything you buy, you have to be really careful with and you have to ration it.

Earlier this year, Tasmanian Labor made a lot of noise about the cost-of-living crisis facing pensioners, with Shane Broad MP saying:

With pensioners spending more on transport and housing, the pressures they face are causing enormous hardship.

…   …   …

When the aged pension is already barely enough to live on, the ever-rising cost of basic necessities means making ends meet is a daily challenge for some of our most vulnerable people.

I certainly hope that Tasmanian Labor members are considering the impact their own federal government can have in addressing some of these immediate and painful cost-of-living challenges. They have been suspiciously quiet on this front, but I hope that they will find their voices soon.

Governments, of course, cannot be all things to all people at all times, but our communities do expect their representatives to step up in a time of need, and I will continue to advocate to the government to help our most vulnerable.

Fiona Phillips (Gilmore, Australian Labor Party) Share this | Link to this | Hansard source

I am proud to be part of a team working to make life easier and more affordable for those living on the pension. My electorate of Gilmore, on the New South Wales South Coast, has the second-highest number of age pensioners in Australia. Almost 28,000 local people are receiving this payment every single week. That is huge. And that is just the age pension. In fact, if you were to calculate each government payment being received across Gilmore, it totals more than 156,000. While some people may be receiving more than one payment, this is still a hugely significant number, so it is no surprise that I am truly passionate about this topic. The Albanese government is the first government in more than a decade to take serious action to support those receiving government pensions.

In September, our government oversaw the largest indexation increase to government payments for pensioners in more than decade and the largest indexation increase to allowances that so many people rely on in more than 30 years. This pay rise saw pension rates rise by $38.90 per fortnight for singles and $58.80 per fortnight for couples combined. It has also seen those receiving the JobSeeker payment receive an extra $25.70 a fortnight. I know what a difference this will make in the lives of local people.

When we have a housing crisis growing out of control, and every day I have people contacting my office and telling me they can't afford their rent, an increase in the rent support payment is going to make a difference. When more and more people are struggling to afford their medicines, bringing the price down by more than 29 per cent and increasing the threshold for the Commonwealth seniors health card will give 50,000 more self-funded retirees access to cheaper medicines and medical care. This is real action to address the rising costs of living for the more vulnerable people in our community. And it is great news for our community.

Before the Jobs and Skills Summit in September, I conducted a survey across my community to ensure that local people could have their voices heard. Traditionally, the South Coast has been an area of high unemployment. But, like most places right now, we have worker shortages across a range of key industries. There are many outcomes of the Jobs and Skills Summit that I like to say have come about because of the input of local people in Gilmore. But probably the most influential were comments about supporting older Australians to work. With almost 28,000 age pensioners, it is little wonder this is a big concern for many people.

I recently met with Michael. He is a retired teacher who wants to return to work to supplement his pension and help him maintain a suitable standard of living. We are in dire need of teachers across the country, but people like Michael have been disincentivised to return to work. Michael is not alone. In my Jobs and Skills Summit survey, people like Sandra suggested we incentivise older Australians to work more hours per week without it impacting their pension. Ian said we need to encourage older Australians back into the workforce. Ian's wife is on the disability support pension, and, when he works, her pension is reduced by 25c in the dollar, reducing her independence. Felicity told me:

We have an untapped resource in employment of the pension aged members of our community … Many have skills, capacity and desire to work in retail, hospitality, but a major disincentive is the loss of benefits applicable should they work more than very minimal hours per week … With many of our businesses unable to operate for full opening hours or days and a significant older population in this region, surely this is a potential solution.

Felicity, Ian and Sandra were among many who made this suggestion. So I wrote to the minister, and the government agreed.

We have introduced legislation to strengthen incentives for age pensioners to work. If this passes, from 1 December, pensioners over age-pension age will benefit from an immediate $4,000 increase in the maximum work bonus income bank balance, which they can access until the end of December 2023. This will mean that pensioners will be financially better off if they work, helping to address labour shortages and helping to support pensioners. Thank you to everyone who continues to make suggestions about how we can better support older Australians in our community. We are doing so much to support our pensioners, and I will keep working every day to make sure that you get a better deal under an Albanese government.

Russell Broadbent (Monash, Liberal Party) Share this | Link to this | Hansard source

Deputy Speaker Claydon, you've been around a while, like I have, and these issues have been fought before us for quite a while—you haven't been here quite as long as I have, but you are an experienced member of this House, and I appreciate that you're in the chair tonight. You will understand that these issues around servicing for the benefit of older Australians have been on our table for a number of years. The previous government put a lot of work into how they might support older Australians. There was a whole package that they offered at the last election and had introduced before the last election on behalf of older Australians.

This new government—I call it a new government; it is only six months old—has put some of those policies into practice and made it easier for pensioners to earn more. But the disincentives for pensioners and recipients of benefit from government are these: they live a precarious lifestyle, unlike us; they have a fixed income; they have a healthcare card; they have other benefits that accrue around where they're at with their money—and their money is not great. Yet we have this massive untapped resource of people in Australia who have reached a certain age and can take a pension but are still quite able to work—and are probably willing to work.

Where does that leave government in trying to put in place incentives without putting in place disincentives? If their healthcare card is threatened, they will choose not to work. If other accrued benefits are threatened, they will choose not to work. In fact, if, in particular, you ask any unemployed women—sometimes they have children, but they also have other responsibilities—why they are not necessarily taking up the opportunities they need to take up, they will tell you it is because they can't afford to lose their benefit. Why? It is because it takes so long to go through the process to get back onto the benefit. They're threatened by the fact of what will happen if they lose their benefit because they've gone to work.

We as a government have to find ways to ease the burden of the restrictions that do not allow people to easily go into the workforce. So I think what the government has done here, as well as what was proposed by the previous government, is of great benefit. It will enable the government to say, 'You can earn some more money before you lose any benefit whatsoever.' Now, I think it's not enough; I think we could always increase it. But to do that, we would have to radically change our ideas of what we actually think about older people in the workforce. Are we as a nation prepared to be radical enough to say, 'We're prepared to pay you a pension, and we'll benefit you by telling you that you can work many more hours without losing your healthcare card or without losing part of your pension'?

We are so desperate for nurses, healthcare workers and hospitality workers. Even if you're not out front, you can be in the background. There's such a shortage when you walk into a community. Deputy Speaker, I could walk into your community and there'd be a sign: 'We are hiring. Come and see us. Come and talk to us.' And it's probably because of this policy that I now see more older Australians actually working behind the counter, especially in some of the bakeries and food outlets that I visit. The socialisation that comes along with work makes a huge difference to the lifestyle and the opportunities that people have. They're suddenly back in society and back in the community. We don't want people sitting at home if they don't want to sit at home.

As a community, as a government, as a nation and as a parliament, we actually have to find ways to encourage those people to feel free to go back into work and not suffer the restrictions that we put upon them with other regulations. These are our own unintended consequences—because we don't want them ripping off the system, do we! Oh, no, that would be terrible! These are not people who are ripping off the system; these are people who have the opportunity to contribute to this great south land. They can contribute. They're in every state. They're in every community. They're everywhere, and we want them on board, as part of our society, working. Let's try to make it easier for older Australians.

Brian Mitchell (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

I think the member for Monash has opened up a really interesting proposition. Of course, we've never had unemployment as low as it currently is. It's very difficult for people to find workers and there is a potential workforce out there amongst older Australians. Some of the ideas that the member for Monash has promulgated are certainly worthy of consideration.

I thank the member for Jagajaga for moving the important motion before us today and I stand here to note that it takes a Labor government to get things done. It was a Labor government that commissioned the last comprehensive review of the pension, with the 2009 Harmer review, which ultimately resulted in a one-off increase to the single age pension and beneficial changes to indexation. Australians on a pension are benefiting from a boost to their bank accounts, thanks to the largest pension indexation increase in more than 12 years and the largest increase to allowances in three decades. The service pension, age pension, disability support pension and carer payment have all risen by $38.90 a fortnight for singles and $58.80 a fortnight for couples in the latest indexation round. The maximum rate for pensioners increased to $1,026.50 a fortnight for singles and $773.80 for each member of a pensioner couple or $1,547 per couple, including the pension supplement and energy settlement.

The rate of JobSeeker payment for singles without children has increased by $25.70 a fortnight to $677.20, including energy supplement, while parenting payment single has increased by $35.20 a fortnight to $927.40, including pension supplement and energy supplement. There are a lot of supplements and things in there, and certainly simplification of the system would be the way to go.

We know that cost-of-living pressures are hitting Australians hard right now. That's the legacy of nine years of neglect by the Morrison government. We have a big mess to clean up. This much-needed boost to pensions will go a long way towards easing some of the pressures that have been building up over the last nine years. Our guiding principle as a government is to ensure that no-one is left behind and no-one is held back.

This indexation increase will help pensioners keep up the cost of living. Labor is committed to a strong social security system, and our system is designed to safeguard pensioners living standards by indexing pensions regularly to reflect these increases to cost-of-living changes. This is just one of the measures that the Albanese government is putting in place to support older Australians. We have also made it easier to get a Commonwealth seniors healthcare card, and we are providing access to cheaper medicines for more older Australians.

Since coming into government six months ago today, we have frozen social security deeming rates at their current levels for two years to 30 June 2024, protecting around 900,000 aged pensioners and other pension recipients from interest rate rises. The Albanese government is and always will be committed to ensuring that Australia has a strong social safety net so that no-one is left behind. Keeping deeming rates low is one way to support older Australians who rely on income from deemed financial investments as well as the pension to deal with the rising cost of living. The lower deeming rate will remain frozen at 0.25 per cent and the upper rate will remain at 2.25 per cent for the next two years to 30 June 2024.

The government has also introduced legislation for changes to strengthen the incentives for aged pensioners to work, which the member for Monash was talking about and which I fully support. If passed, from 1 December, pensioners over the age pension age will benefit from an immediate $4,000 increase in the maximum work bonus income bank balance from $7,800 to $11,800, which they can access until the end of December 2023. It's certainly my hope that we'll be looking at that when that review period is up. Pensioners are financially better off if they do some work. This will provide an immediate benefit to any pensioner over the age pension age who works and will help address some of the labour shortages we are facing in the community.

I join member for Jagajaga in commending the commitment of the Albanese government—six months old today—to support older Australians delivering tangible measures to help them get by in a time where the cost of living and other challenges are forcing people to make their pension stretch further every day.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

Unfortunately, a large increase in the pension on the back of indexation is not something to celebrate whatsoever. If the pension is going up by a record amount thanks to indexation, it's because inflation is equally at record levels. The cost of living and the burden on everyone in our society, particularly those on fixed incomes who have to provision very carefully for how they meet the costs in their household and their everyday expenses, means they are really, really struggling. The increase we've seen come through is in an environment where the Commonwealth budget predicts inflation increasing even more dramatically in the future.

The latest ABS figure is 7.3 per cent. The budget predicts eight per cent. All the predictions that are happening around the world at the moment continue to be revised up. We desperately hope that inflation won't increase beyond its current rate, let alone to eight per cent or higher, but unfortunately there is a serious risk in the environment that we're in right now that inflation will potentially be revised up even further. But even at eight per cent that is making it really, really difficult for people on a fixed income and particularly for pensioners.

At the same time, interest rates are increasing. We've had seven interest rate increases in a row, each and every month for the last seven months. Regrettably, in a couple of weeks time when the Reserve Bank meets in December, there is every chance that we'll have an eighth increase. Decisions like that are, again, only putting pressure on the people who find it the most difficult to balance their budgets. That means they have to make serious decisions and sacrifice some of the special things that they do with what discretionary income they've got, if they've got that discretionary income, and that's making things tighter and tighter.

This is a motion that congratulates the government for something that happened automatically through legislation and that has happened for many years. It is right and appropriate that we increase the pension to meet increased cost-of-living burdens on people, but there's nothing pleasant and nothing to celebrate about the fact that the pension has increased by a record amount which is linked to a record increase in the cost of living. As I say, that is a burden that sits disproportionately upon people that are on a very fixed and managed income.

The member for Monash made some important points, in a lateral way, around the need to put a lot more flexibility in place for people on the pension and for senior Australians more broadly, so that they are able to contribute to our economy in a voluntary way—if they want to—without being penalised and without having that impact their eligibility for certain things like the Commonwealth seniors healthcare card. For those that are on the pension, that is providing an increased incentive for them to participate in the economy by taking on work and earning an income without hitting them too early and too hard on the eligibility of the entitlements that rightfully belong to them.

I acknowledge we've made a few steps in that direction recently, which was thanks to important policy announcements that the coalition made during the election, particularly the increase to the entitlement of the Commonwealth seniors healthcare card. Since the election, of course, the opposition has led the debate on increasing the earnings eligibility that should be there for pensioners before it starts to impact on their pension entitlement. What the government has done is a half step towards that. It is temporary, and we certainly think that we need to go further.

But at least we're all talking about the very important need to be supporting pensioners at a time when they have never been doing it so tough because of factors that are completely out of their control, like the costs in their household budget increasing so dramatically. The inflation rate might be 7.3 per cent and it might be increasing to eight per cent or beyond, but we know that there are elements within that, particularly around fuel and around groceries et cetera, that have been increasing even more significantly. That's putting a huge burden on them, and Labor are now saying they're getting a 56 per cent increase in their electricity bills over the next two years. This pension increase is nothing to celebrate. We want to increase the pension, but more importantly we want pensioners to not have to face these dramatic cost-of-living pressures that they're enduring under Labor.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired.