Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

Through you, Mr Acting Deputy President, the argument is made by members of the former Liberal-National Party government that they introduced indexation of the aged pension to MTAWE—male total average weekly earnings. Firstly, Senator McGauran, I would suggest if you are going to use jargon, use jargon that the general population can understand. This is a real example just how out of touch those opposite became in those almost 12 long years. The indexation of the aged pension to male total average weekly earnings rather than to the old CPI, the lesser value index consumer price index, was introduced by the Hawke Labor government. That was one of the first actions it took in 1983 when it took office. It introduced it then, Senator McGauran, through you, Mr Acting Deputy President. The Liberal-National Party thought it was some magnificent coup to enshrine this policy in law and it did that, but that did not increase the indexation pension at all. You enshrined it in law, but it was actually the Hawke Labor government which introduced the policy. It delivered the extra money.

The Liberal-National Party kid themselves and fool themselves into believing—unfortunately, they probably got convinced by either the former Prime Minister or the Treasurer—that they had actually done something real for pensioners, when in fact the legislation itself did not deliver one cent extra to pensioners. It had already been delivered. They believe that they made some major monetary improvement for aged pensioners when in fact they had not delivered the action or the money increase—they delivered the legislation. I just think that is another typical example of how out of touch they became, convincing themselves that they had actually done something meaningful.

The social security bill provides a further $3.9 billion, targeted at Australian families whose family budgets are already stretched by financial pressures flowing from the current global economic difficulties. The package of payments provided by the bill to pensioners and families will be made over the fortnight starting on 8 December and most payments will be made automatically. People who received one of a range of social security and veterans entitlements qualifying payments on 14 October 2008 will receive these economic security strategy payments. These include people—and these are the sorts of people that Senator McGauran referred to in such a derogatory fashion—receiving age, disability support, wife, widow B and veterans service pensions; income support supplement; carer payment; and partner, widow and bereavement allowances. I hope Senator McGauran, in particular, is taking note of just who these payments are to go to. For the first time, disability support pensioners, along with other customer groups, will receive a lump sum payment. The government recognises that disability support pensioners are just as much under financial pressure as other pensioners.

Other Australians who will also receive an economic security strategy payment include those who, on 14 October 2008, were of age pension age and received parenting payment, special benefit, Austudy payment or Abstudy living allowance. Self-funded retirees who, on 14 October 2008, held a current Commonwealth seniors health card and holders of a Veterans’ Affairs gold card who were eligible for seniors’ concession allowance on that date will not miss out. They will also be eligible for an economic security strategy payment.

If any pensioners and seniors were not actually receiving a qualifying payment on 14 October 2008, but had claimed the qualifying payment by that date and later had their qualifying payment backdated to cover that date, they will still get the economic security strategy payment. Similar backdating arrangements will apply for qualifying card holders.

Senator McGauran, in one part of his contribution, derided the current Treasurer, Wayne Swan, for suggesting that individuals should check their entitlements with Centrelink. These are the same entitlements that the Treasurer, Mr Swan, was drawing their attention to—and rightly so. I am a little taken aback by the criticism levelled by members of the Liberal and National parties with respect to retired individuals—retirees, part-pensioners—who are actually entitled to a part-pension payment or may become entitled to a full pension payment if their financial circumstances have changed. Members of the Liberal and National parties seem to think that they should not claim it. They paid their taxes and they are perfectly entitled, and it should be publicly drawn to their attention to go and check on their entitlements. And, as I understand, many have done so—hundreds of thousands. How dare Senator McGauran, on behalf of the Liberal and National parties, suggest that the Treasurer, Mr Swan, was wrong in drawing this to the attention of people who have paid their taxes and retired and suggest that they should not inquire as to their eligibility for payments. Just how out of touch is Senator McGauran?