Age Pension and Harmer Report which is not to be released til May

Oh well we have a lot of leaks about this report and some articles appearing in the papers.
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This is one I found interesting.
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[quote]Wealthy pensioners to lose out
February 27, 2009
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A MILLION pensioners stand to have their payments reduced to cover the cost of an increase to the pension paid to single people.
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The Federal Government will receive a report today from the senior public servant Jeff Harmer about the adequacy of the age pension. It is expected to say the system is poorly targeted because it pays too little to those most in need and too much to people with private income from superannuation or property.
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Senior officials from Treasury and the Department of Family and Community Services are believed to support tilting the balance in favour of poorer retirees by changing the taper rate, or the income threshold at which the age pension begins to decline.
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A change to the pension system would fit in with the Government's desire to clamp down on middle-class welfare.
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On January 1 it tightened eligibility for the baby bonus and family payments by introducing a $150,000 income test, a decision that affected 50,000 families.
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The Herald has learned significant savings could be made by lifting the taper rate from 40 cents to 50 cents, which means pensions would decline by 50 cents for each dollar earned over the qualifying threshold.
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This would take the rate back to the level of a decade ago, when it was reduced to appease pensioner lobby groups before the introduction of the GST.
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It would also reduce the stress on a budget already headed for significant deficit.
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About 1 million people, most of whom receive only a part pension, would be affected.
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They are likely to be comparatively wealthy and own their homes outright and have other sources of income.
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Welfare groups said they would support the change because it would mean the pension would be better targeted to help poorer people, those with caring responsibilities and those renting private accommodation.
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The director of the Welfare Rights Centre, Maree O'Halloran, said the system needed to be overhauled to make it equitable.
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"Unless the fundamental design of the system is considered it will be impossible to fairly address the adequacy of payments," Ms O'Halloran said.
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"A single person can get some of the pension and a range of other concessions when their income is about $770 a week. [b]Working families paying a mortgage and trying to get their kids through school would consider this amount a bit rich."[/b]
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The chief executive of National Seniors Australia, Michael O'Neill, said the first priority of the pension system needed to be "making sure the most vulnerable are looked after". "Any focus needs to be on them. As a consequence, the focus needs to be where the money is spent at the other end of the scale. In terms of the taper rate that might be one of the issues we have to deal with."
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[b]Although the Government has committed itself to increasing the pension in the budget in May it is also wary of condemning itself to years of high welfare bills due to the ageing population and the declining value of superannuation.[/b]
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[b]An increase of $30 a week for single pensions would cost the Government billions of dollars when it can least afford it.[/b]
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AA spokeswoman for the Minister for Family and Community Services, Jenny Macklin, said the Government remained [b]"committed to delivering long-term pension reform in the context of this year's budget"[/b].[/quote]
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http://www.smh.com.au/national/wealthy-pensioners-to-lose-out-20090226-8j99.html?page=-1
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Ok read that have you - well what do you think of it?
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There is the last stinger in the tail - Jenny Macklin says which means what? Reform of the assets for home ownership for one thing I suspect.
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Also we have that phrase - working families raising its ugly head again - Rudd speak - for you are too bloody old and useless so die you buggers - do you think?
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Forgetting of course that we all worked and paid our income taxes without any of the handouts that the younger ones who sneer at us expecting to get a bit better than a below poverty pittance whilst they think nothing of their welfare handouts of Tax Benefits and First Home Owners Grants and all the things not one of the Age Pensioners today got because they were not brought in when they were working to pay off a home and keep a family on a what most would consider to be a blooming low wage they wouldn't get out of bed for!
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Now we will not be able to access the Harmer report until after the May Budget so that means that we will have to put up with whatever is given and I suspect it will be a bitter pill for many and a bit of a kick in the teeth even for those singles who did struggle along with their spouses to pay off a home and some still are doing the same paying off a mortgage and during times when rates were up to 18% and we have all been through 3 Labor recessions and this is the fourth recession and again strangely enough under Labor.

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31 comments

And another email semi-relevant to the topic



I am not a person who likes to complain very much but I object to the way this government is treating pensioners and especially single invalid pensions.



My daughter lives in the country and because of her husband divorcing her and she managed to hang on to the property she is left with a mortgage.



Can someone tell me how a person can afford to live on $13,000 per year and out of that pay rates, electricity, mortgage, petrol, medications and food and that’s without taking into account anything else.



Our daughter needs a new car as her present car is old and worn out and would cost more to repair than it’s worth and yet she has to make it go to get to the chemist and shops not counting doctor’s appointments some of which are over 100 kms away. She has been into bank and loan agencies to try and get a loan to buy a more reliable car but all she gets is laughed at.



To put it all in a proper perspective she is schizophrenic effected, she has had breast cancer and lost one breast and she suffers with bleeding in her legs all of which has cost her a lot of money in travel and excess were doctors or anathematises do not bulk bill.



Honestly I would like to see some of these Politicians survive in this sort of a situation and they are talking of $35 per week increase a miserable $1820 per year.



There is more money handed out to hopeless businesses that should be going broke than to the people who really need it.



I wonder if Mr Rudd and his ministers know what it’s like to go to bed at night crying out of frustration and helplessness.



David

An email received by AboutSeniors regarding this topic.



Thank you for your update on the Pension Review.



The plight of the single pensioner highlights the pension needs a rapid increase. We support the Westpac/ASFA budget as the benchmark. This is most relevant to those who are renters and to those whose asset base is primarily the family home. And so is the pensioner couple in the same position.



It is the Aged Pension recipients with a highly valued, owner occupied, home or other assets who should be re-assessed in the Review. My own personal and business views were presented in a submission to the Review. These were similar to the Brotherhood of St. Lawrence’s submission, which concluded that when the value of the owner-occupied home was in excess of $1 million dollars, the house should be no longer exempt and the recipients would no longer qualify for the pension. (The average value increase to a property of $1 million dollars + over a period of 10 years or longer is 5%+ per annum)



The Pension was originally made available to those who could not support themselves. It seems we have forgotten this along the way.



Regards,

Paul Dwyer

Melbourne and Peninsula Reverse Mortgages



Well well well - wouldn't have a bit of a conflict of interest this gentlemen now would he - not much.



Just because one of the solutions to folks whose homes are worth a million+ are a reverse mortgage or sell down either way if the folk who then these lose the pension.



Or maybe sell up and in GFM not easy to buy down market and then use the left over proceeds to live on until requalify for the pension.



I do think that somehow some who own a second home rented out and have these sort of assets are not as dependent.



Also of course this gentlemen like so many is totally ignorant of the Age Pension and its starting off as being paid for by the workers in 1909 in their income taxes and no one has been able to find that 7.5% of their taxes allocated towards their Age Pension being lowered when under the National Welfare Act in 1946 which took over 1909 pension Act and the Pension fund within it was closed by Menzies in 1950 and its 2 billion back then in today's dollars quite a substantial sum was half inched into consolidated revenue legally not morally - and now has sunk into oblivion as the national Welfare Act was repealed by Paul Keating in 1985 but the 7.5% is still being collected seemingly but forgotten in Canberra and everywhere except in the minds of elderly and yesterdays civil servants and they were civil back then - who write and tell us and MPs who ignore it that we all paid for our pensions.



Which follows on to most of us who well remember being told for years that our pensions were safe and being cared for and when we arrived at pension age we would be looked after. No it all went sideways in or around 1985 maybe when the mandatory super was being put forward by Paul Keating and he repealed the NW Act. Britain who started of their pension fund around same time as us - still run theirs and funny thing is it is kept by the Inland Revenue and Customs who collect income taxes too just as our fund was funded by income taxes and kept by ATO.



So now we are all considered to be welfare recipients who didn't save up for our retirement but pissed it all away in the pub - men that is - whilst the women sat back on their bums not working just doing a bit of housework instead of getting out and earning a quid for retirement - lazy bludging type people.



Rearing back - offended ! You should be because that is where we are at in the eyes of the younger folk who have all been taught that the above is why we are relying so many on the pension.



And this business of the homes well that 'hare' was started by the then Governor of the Reserve Bank Glenn Stephens when he wrote that the elderly sitting on million dollars homes were the cause of high house prices and that they were stealing the inheritance of their children and rubbish to that effect and effective it was to younger folk - I haven't got the article any more as it was on my old fried in a storm computer. Google and find it around 2003.



Not a word on the fact that Bob /Carr had just said that house prices were high due to massive immigration and around 1000 a week into Sydney pushing up prices for home and for rents too.



But again age pension renters cant be given an increase in the rent allowance particularly those living on their own as this will make rents rise for all.



bar humbug ..........it is all manipulation going on and I for one dont like it one little bit.



Where are the social engineers of the left crying out to tell eveyone they are lowering our self esteem?



Attacking the elderly who built this country from the Wars 1 & 2 ?



Strangely silent

One hell of a series of Posts, BigVal. You have reminded me of a lot of history, that I had forgotten, as well as stating & summerising all the extra information, that you have found. There has got to be some way of us successfully fighting these Policies. I believe, as I have said on many occasions on here, the single pension will rise by around 25 to $30 P/W, in July & we will have an early election before the end of this year, which KRudd will win. But having read all your imput twice, I am having a rethink. I am not so sure anymore!!! BUT, we are not going to achieve anything until we break the 40 + 40 + 20% rule

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