Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Families and Social Services, Minister Ruston. How is the Liberal-National government supporting older Australians in their retirement?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I thank Senator Abetz for his question. This government is absolutely committed to finding new and innovative ways to support age pensioners and self-funded retirees in their retirement. That's why we're introducing legislation this week to ensure older Australians are supported to use their own resources to maximise their retirement outcomes.

We are delivering on our 2021-22 budget measure and enhancing the Pension Loans Scheme with a $21 million reform package. It's important to point out that the Pension Loans Scheme is available to all Australians who have reached age pension age, and that includes people who are part-pensioners and people who are self-funded retirees. The program can be used for them to top up their retirement income by using some of the equity that they have in their home or other assets and, when their house is sold, the loan is then repaid from those proceeds. The loan amount is paid out fortnightly at the rate of up to 150 per cent of the full age pension. Under the budget reform, we are expanding the scheme through the introduction of lump sum payments. From the middle of next year, people using the Pension Loans Scheme will be able to access up to two annual lump sum advances in any 12-month period up to a total of 50 per cent of the maximum annual rate of the age pension.

The popularity of the Pension Loans Scheme has grown more than five-fold in less two years, as our expansions to the scheme have allowed more retirees to tap into the equity tied up in their homes to pay for additional living expenses. The School of Risk and Actuarial Studies at the University of New South Wales believe access to lump sum payments will increase the attractiveness of the scheme. We know that homeownership has always been the bedrock of our society, and we want to make sure that we give older Australians the confidence to tap into a small proportion of their home equity to make sure that their retirement outcomes are maximised for their own benefits.

Slade Brockman (President) Share this | Link to this | Hansard source

Senator Abetz, a supplementary question?

Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for the wealth of information contained in her extensive answer, and I ask the minister for further advice. How has the government supported older Australians throughout the COVID-19 pandemic?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

As we recover from the pandemic, some older Australians are facing new challenges and stresses, such as loneliness and increased social isolation. Friend Line encourages older Australians who may be lonely and not have anyone to talk to to call and chat to a volunteer. We know that there is a real need for assistance to alleviate loneliness and social isolation, so programs like Friend Line are here to help. I would encourage all senators in this place to make sure that you let your constituents know, particularly your older constituents, that this service is available to them to make sure that they have someone to reach out to if they don't have a friend or family member to do so.

Throughout the pandemic, we also made economic support payments to more than 2.5 million Australian age pensioners, who were among the 5.5 million social security recipients to receive one-off payments in 2020-21. These were paid at $750 in both March and July. (Time expired)

Slade Brockman (President) Share this | Link to this | Hansard source

Senator Abetz, a second supplementary question?

Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for another extensive answer. Can the minister further update the Senate on how our Liberal-National government is providing pensioners flexibility in their retirement and tackling misinformation?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

The government are focused on ways we can make a real difference in the lives of age pensioners. We want them to have flexibility and to boost their income so that they can choose how they spend their money in retirement. We're doing this through changes to the Pension Loans Scheme as well as the work bonus, which increases the amount a pensioner can earn from work before it affects their pension rate. This is in stark contrast to those opposite, who are focused on frightening senior Australians with a false campaign. For the record, I repeat in this place that the government has been very clear that the Morrison government has no plan and never will have a plan to force age pensioners onto the cashless debit card. Senior Australians know that we are the party that can be trusted to protect their interests in retirement, which is exactly what we will do and continue to focus on. We will not scare age pensioners for political gain.

Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.