Rod Kemp (Victoria, Liberal Party, Minister for the Arts and Sport) Share this | Hansard source

I thank Senator Scullion for that important question and his continuing interest in this matter. Through strong management of the economy, the Howard government has been able to deliver effective policies and initiatives to support age pensioners and self-funded retirees in Australia, and our record speaks for itself. The Australian government, as many senators will know, spends more on the age pension than on any other single program. In 2006-07, around $22 billion will be allocated to the age pension, which is up from just over $12 billion in 1995-96. In 1998 the coalition government legislated to have the age pension rates linked to the male total average weekly earnings. As a result of this initiative, single pensioners are now some $55.50 better off and couples are $46.70 better off each fortnight than they would have been under Labor. Since March 1996, I am advised, pensions have increased by over 45 per cent, which represents an increase that is over 18 percentage points higher than inflation. This is a very important achievement of this government and one which has delivered very real benefits to age pensioners.

Mr President, you will recall that it was the coalition government that introduced the utilities allowance for pensioners in March 2005. This allowance pays $102.80 a year for singles and $51.40 a year for each eligible member of a couple. In addition, as part of a $192 million budget initiative, the coalition government provided a one-off payment of just over $102 to households in receipt of the utilities allowance—another initiative which was very much welcomed.

The coalition government has also a proud record in supporting self-funded retirees. In December 2004 it was the coalition government that introduced a seniors concession allowance for holders of the Commonwealth seniors health card. This payment is made in recognition that most state and territory governments do not provide the same concession to these groups as they do for pensioners. The seniors concession allowance is paid in June and December and the current annual rate is $208.80. In March 1996 some 33,000 older Australians held a Commonwealth seniors health card, and today it is worth recording that there are over 300,000 self-funded retirees receiving the benefit of this concession card. There is no doubt that the coalition has done more to support our older people than any alternative government. This is not only because of the commitment and priority we give to our senior people but also because we have managed the economy in a very effective way which is now delivering very real benefits to all Australians.