Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Hansard source

Senator Siewert, you are absolutely right. What this legislation is about is closing a loophole. It is not about budget savings—in fact, we know we are going to be investing much more in a fairer and more equitable system supporting our older Australians.

Changes proposed by the bill to access to pharmaceutical support are an important issue. We certainly understand that many people are worried that, if they lose access to those concessional pharmaceuticals, they will not be able to afford their medicines. I want to make it absolutely clear and plain in answering your question that there are safeguards in place to support them if they get sick.

To remind everybody thinking about this legislation—as you say so rightly, Senator Siewert—this is only for people whose income is more than $50,000 a year or, for couples, $80,000 a year, which is a substantial amount of money, as you say, for older Australians. Below these amounts they will still have access to the pharmaceutical concessions and above those amounts a safety net remains in place to ensure that those who need lots of medicines are protected from the high costs. The Pharmaceutical Benefits Scheme safety net allows a senior without a concession card to have their contribution decreased from the standard rate of $32.90 a script to the concession rate of $5.30 once their expenditure gets to $1,264.90 in a calendar year. You can see, of course, that people who would be using many scripts would get to that threshold very quickly. Once a senior reaches the safety net threshold, an application can be made for the PBS safety net card. They will be eligible for that if they reach the threshold in a calendar year. That card gives automatic access to the concession rate of pharmaceuticals.