Nick Xenophon (SA, Independent) Share this | Hansard source

I note that the Social Security and Veterans’ Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009 makes superannuation income and drawdown as a salary-sacrificing part of assessable income when qualifying for the seniors card. Also, as I understand it, super lump sum withdrawals for cars, bonds and health will not be included in assessable income. That is something I would like to clarify during the committee stage if we get to it. I also note that the government is proposing a threshold of $50,000 for individuals and $80,000 for couples to be assessed annually but not to be indexed. Again, that is a question I would like to have addressed. I understand that the Harmer review is looking at these things, but I would have thought that as a safeguard there ought to be consideration of indexation, at the very least based on CPI. Of course, another method of measurement is the average weekly earnings form of adjustment.

My office has had a number of complaints in relation to this bill about people losing their health card benefits, and it is an issue of concern. I think it should be noted that with the global financial crisis many more self-funded retirees will be able to qualify for a seniors card. I would like to get some confirmation from the government as to how much this will save over the next four years and whether there have been any further assessments in relation to that. Regarding some of the media commentary, which I think reflects a number of the complaints that my office has been getting about this, I note that there will be individuals who will be worse off by several hundred dollars a year as a result of the additional pharmaceutical costs alone. That is an issue of concern.

I also understand the equity arguments—that if you have an income of $50,000 as an individual or $80,000 as a couple then you are in a better position to absorb those costs. I note the Greens plan to move amendments to the bill that would lift the threshold, and I would certainly prefer that position to the current thresholds proposed by the government. I will support the second reading of this bill, but I would like to reserve my position in relation to the third reading on both the issue of indexation and the thresholds. I am mindful about the balancing act between providing benefits as broadly as possible and managing the costs of those benefits and the ability of individuals to pay. I indicate that I am not satisfied with the current thresholds being proposed by the government and that this is an issue that will need to be appropriately ventilated during the committee stage.