Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

The Economic Security Strategy payments to pensioners were, as the Senate will understand, a down payment on long-term pension reform. I appreciate the support we received from the opposition in passing that—something that seems to have been forgotten in recent times. In that package, we made it very clear that this was a down payment on the more fundamental reform that was necessary for the payment of pensions and the level of pensions. As a down payment on that pension reform, the ESS payment was made to some pensioners resident overseas who are part of longstanding international social security arrangements. They are entitled because of this international regime. If pensions increase in Australia, these longstanding arrangements suggest that those increases should flow to all those receiving the Australian pension, including those overseas.

Australia currently has 22 international social security arrangements. They were, up until now, bipartisan policy. It seems that is no longer the case. For the record, at least 388,000 overseas pensions are paid in Australia, with an annual value of $1.6 billion. Australia currently pays an estimated $517 million in pensions to people overseas. So, in net terms, because of those international social security arrangements, more than $1 billion comes into Australia each year. In other words, we have a net win, if you like, out of those arrangements. These payments will be paid to all those in the receipt of a pension because it is part of a down payment on the pension rate—which, as I say, is being considered by the Harmer report and which the government will respond to in the next budget. It is on that basis that they have been paid. (Time expired)