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.

31 comments

Remember this:-



Found it when googling and hadn't heard that we were to wait til end of 2009!!!!!! Sleight of hand? slipped it in just after May Budget. This is spin doctoring - methinks so.



Pensioners will have to wait: Rudd

[b]May 16, 2008 - 4:02PM



Prime Minister Kevin Rudd says any changes to the pension system may have to wait until the completion of a comprehensive review of Australia's tax system.

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The review is being undertaken by the Treasury Secretary, Dr Ken Henry, who will release a discussion paper by the end of July and provide a final report to government by the end of 2009.[/b]

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Speaking to reporters in Brisbane today, Mr Rudd said he understood it was difficult to make ends meet on the pension.

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"I understand full well that people on the age pension are finding it very difficult, that's why we need to have a complete, all-round look at this through the Henry commission of inquiry," Mr Rudd said.

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"It's very important to make sure we have a thorough, long-term response to the long-term challenges of retirement income policy and that means for pensioners, it means for carers** and it means for others."

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Ok now thing is that we were told that the pension review by Harmer was to be tabled at end of February 2009 - like last week - and that was announced earlier in the budget where we were told how lucky we were to get the bonus.*

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The review is finished and now we are being told will know all in May Budget and then I found this piece about Tax Review which is not due until December 2009



That bonus* coincidently was the one originally given on previous years by Liberal/National government and was already in for payment to us in the Budget estimates Rudd took over and kindly left in when there was a bit of a furore when leaked it was being taken out and why - mainly because of the carers.

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I am a swinging voter and will vote for whoever just like anyone else looks after me and mine. I certainly feel uneasy at the mixed messages coming out currently on age pensions. That's why started to look up all on this and it gets worse as it goes.

From my own observation, I would suggest that the poll questions would be formed after careful study of letters to Eds, blogs and talkback.

So it would seem to me that there have been rumblings of dissatisfaction among the populace, in particular from swinging voters.



Quite right Koko - I am very uneasy on what is happening about age pensions to be honest.

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I maybe being cynical as always have said profit and greed were pushing things out of kilter and haven't we all just had that confirmed - it is the greed by individuals and the profit at any cost and bugger the workers or the country that has really shaken up the whole financial system.

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Of course Rudd was unlucky to cop this lot - it is just that I personally would feel a whole heap better if our taxpayer dollars were in the hands of the bloke named Peter* who paid off the last 96 billion worth of Labor's debt and Rudd is spraying money around like a drunken sailor and of course not waiting to see if anything works before spraying a lot more out to "working families" and heaps to Indonesia Gaza and any other third world country who cant get off their butts and do the right thing for themselves and rely on wealthy countries - when those wealthy countries got there by the hard work the people currently on age pension having down their bit and worked and paid their taxes and now reaping what a kick in the teeth for being old?



Grrh......don;'t get mad get even they say - and then there is the one that what goes around comes around.



Well the SFR who lobbied hard on Howard and got the concessions have had the shock of their lives poor things - and now many of them will need a part pension - so lets hope they bring their lobbying skills with them - as we sure need more expertise on the how to front.



And less of the what a lovely man he is crap!

As much as I don't like pollies--I do think Rudd has come in at a very bad time--with ll that is happening in the world--but it makes you see red when they can get a rise and we can't



Ever wondered what Politics means--Will Poli (or Poly) means many--and tic (tick) means a blood sucking insect

And you surely have to feel sorry for folk in this predicament and wonder why couples are to get less and less - piffle that is what that is - two need to eat and food is the most expensive and if people go without - costs the government more in the health budget.





Pension pledge 'hot air'



Thelma and Terry Carroll

Tweed Daily News



THELMA Carroll isn't surprised that the Rudd Government is keeping the detail of its long-awaited pensions review under wraps.



The Tweed Heads West pensioner said the Government's pledge last year to increase the single pension rate by $30 per week was “a lot of hot air” and was convinced any funding relief for struggling pensioners would be a long way off.



“I'm not surprised they are not releasing the report because my feeling is they had no intention of increasing the pension rate,” Mrs Carroll said.



“It upsets me that they committed to increase the rate just for single pensioners, when as a couple we have to pay twice as much for food and bills.”



[b]The Harmer Report, compiled by the secretary of the Department of Families, Housing, Community Services and Indigenous Affairs, Jeff Harmer, was handed to the Rudd Government last Friday.



But instead of making the details of the comprehensive review of all pensions public, the report has been kept under wraps with the Rudd Government to deliver its response as part of the next Federal Budget in May.[/b]



More than [b]two million Australians over 65 receive a full or part pension.

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“We know the world is in financial crisis, but in the last few weeks (Prime Minister Kevin) Rudd has given millions to people living overseas, but we ... believe that money should be spent helping out our own.”[/b]

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Mrs Carroll, 75, and her husband Terry, 73, receive an aged pension*** of about $1040, including rent assistance, per fortnight. And from that they pay $626 in rent, leaving just $414 to pay bills, buy food and run their car.

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“Thelma writes a budget every fortnight and sticks to it, that is how we get by,” Mr Carroll said.

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Speculations about the recommendations included in the Harmer Report include a possible increase to the pensionable age and a reduction in payments if personal assets exceed a threshold.

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The Harmer Report and the campaign for an increase to pensions across the board will be discussed at the Tuesday meeting of the Tweed Pensioner Action Group.

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Terri Bradley, organiser of the group and the weekly pensioner food drop held at Chris Cunningham Park today from noon, said welfare recipients needed to work together to fight for improved conditions.

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“We need to let the politicians know that we are not going away. Pensioners are living on the poverty line and deserve more.”

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Tweed Heads South campaigner Don Morgan said he believed the Rudd Government would deliver on its promise even in the current economic climate.

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[url=http://www.tweednews.com.au/story/2009/03/04/pension-pledge-hot-air/]source[/url]





*** actually he receives $469.50 and she receives $469.50 as their individual age pensions as they stopped paying it all to the man in 1995 and started to treat the woman as a person - prior to that she was not considered to be a Centrelink Client and they would not speak to her.

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The rent assistance which is on above amount $101.60 would be divided and paid to each one as half which is $50.80.

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I think this couple business is part of the problem as they are setting off the plight of a single against a couple who are two separate people and paid that way and this is a bit of a spin and gets the government whichever party is in power out of the poo caused by giving far too much away overseas.

Not finished yet - here is another little gem for you to ponder over. Left in the comments too - interesting are they not?

[url=http://www.news.com.au/couriermail/story/0,23739,25115922-953,00.html]source[/url]





By Melanie Christiansen

Courier Mail Brisbane

February 27, 2009 11:00pm

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PENSIONERS struggling to pay high rents should not expect an increased rental allowance as part of the Federal Government's promised pension overhaul.

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As the much-awaited Harmer report on pensions was handed to the Government, Federal Housing Minister Tanya Plibersek all but ruled out a boost to the allowance, branding such a move as "dangerous".

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Singles now get a maximum $55.10-a-week - about one-fifth of the typical $270-a-week rent on a one-bedroom apartment in Brisbane.

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Queensland Council of Social Services President Karyn Walsh had called for a lift in the allowance to help about 4000 aged pensioners in private rental accommodation in the state but Ms Plibersek yesterday dismissed the suggestion as "slightly dangerous".

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The Minister said: "Unfortunately, experience shows us that simply increasing the rental allowance is more than likely to push up rents.

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"I don't think it's the best way of dealing with the issue."

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It is understood the Harmer report has made findings about the inadequacy of government payments to specific groups of pensioners, including renters.

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The report, by Family and Community Services Department head Jeff Harmer, has also highlighted a need for increased support for singles, those living alone and those with caring responsibilities.

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It was expected to recommend the single pension be lifted to two-thirds of the couple's rate - an immediate boost of $22 a week for singles with a modest increase for couples.

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It was also expected to propose a revamp of the bonus scheme, which pays up to $33,409 to seniors who stay in the workforce for five years past the age when they would otherwise be able to claim a pension.

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Although it does not go as far as recommending a rise in the pension eligibility age, it is understood the report has called for a discussion about lifting Australia's retirement age in line with increased life expectancy. The Committee for the Economic Development of Australia has estimated lifting the pension age to 67 could save $800million a year.

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The US, the UK, Germany and Denmark have already announced moves to raise their pension age to 67 or 68.

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The Government is also awaiting a report on retirement income from Treasury Secretary Ken Henry after a pledge to boost pensions in the May budget.

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Have Your Say

Latest Comments:

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Well its no surprise, Guess who the pensioners will vote for next time, i bet it wont be Rudd the dud., its not always a case of the grass is greener on the other side , but i guess we are all finding out now that this mans a sham, He makes more promises than he can keep and then wants to also put up the pension access age. Bye By Rudd.( hopefully no far behind your mate here in qld.)

Posted by: garry of tarra of 6:53am today

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I had to give up my Housing Commission home when my teenagers started earning or else pay much higher rent so I'm sure there are people who should not qualify for a HC house & they should make way for pensioners who simply cannot afford private rentals. I notice $22 was mentioned, what happened to the $35 quoted earlier in the week? Single pensioners will be lucky to get $15 & then they will be forgotten again, but sadly not by their landlords who will again up the rent.

Posted by: Judy of brisbane 6:46am today

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SO pensioners don't get too excited about any extra money Tanya or Jenny Macklin have no idea what it would be like to live on a pension

Posted by: Jeff of Bundaberg 4:47pm February 28, 2009

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[b]I can't understand how you can have a situation where two pensioner couples have houses side by side, both paying $300 a week, one on rent and the other on a mortgage, but the renter gets more money. It seems that the government is training people to be poor money users. Why should the couple who have been frugal enough to save a deposit be penalised?[/b]

Posted by: Daryl Saal of Toowoomba 1:12pm February 28, 2009

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Pensioners dont hold your breath but I think Kevin Krudd is going to get all the extra taxes to pay for his 42Billion dollar give away to the rich from you. Like past labor governments Krudd will target the poor to pay for all his election promises and extra taxes. If workers in the future ever get to retire under labor's new work to you drop policy I am sure they will find a way to get their hands on any of your wealth that is left over.

Posted by: Charlie Jones of Carina Heights 1:09pm February 28, 2009

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Pension = $281 + $55 rent assistance = $336 - rent $270 = $66 left for: Food, living expenses, utilities bills, insurance bills, car running cost, etc... Shame on you Australia! You treat your pensioners like second class citizens, living well below the poverty line. Most have worked all their lifes and paid taxes all their lifes, to end up like this! Superannuation wasn't available untill late, this country is light years behind most western countries.

Posted by: Abdhulla of 11:21am February 28, 2009

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As much as I don't like pollies--I do think Rudd has come in at a very bad time--with ll that is happening in the world--but it makes you see red when they can get a rise and we can't



Ever wondered what Politics means--Will Poli (or Poly) means many--and tic (tick) means a blood sucking insect



Australia sailed through the Asian meltdown, with barely a ripple, and, as BigVal has pointed out, after paying off the previous govt's debt. In fact, we may still have been paying it during that crisis.

Yet employment still grew, and wages rose.

Re Workplace whatever this lot are calling it......

Gillard has kept 98% of the policy.

So folks there you have the scuttlebutt on age pension to date and don't hold your breath for that rise - well do would be the whisper from Canberra - save us a lot of money - Joke........:)

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singles may get $22 a week rise but they dont want to do the right thing and give them a decent rent allowance because they are poor and don't own a house and those wicked folk who did struggle and pay off a mortgage and of course some of those renting folk did once own a house but due to one of the previous recessions when Labor was in power 1974 1984 and 1990 lost that house due to losing job and having to go on the dole - or lost the public housing due to having too much money coming in or whatever.

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Then there are the sensible singles who having lost a life partner or just being sensible sell up and buy one home between the sharers on the pension and of course making damn sure that the last alive stays in the home etc - or maybe brother and sister now alone or any combination of single pensioners on higher pension and being paid that because they are not married but still are better off than a single one living alone for any reason whatever. Or maybe a bunch of single OAP's renting a place together - must know they are on the OAP as they will apply for rent assistance and only one can get it. But will the clerk tell the boss?

Not if it isnt in the guidelines. rofl.



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Now will the Centrelink Investigators be out canvassing each and every age pensioner to see how they live to strip them of the single pension and bring in a sharers pension same as the couples pension?

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Yes well they are already in the process of carrying out a review so this will naturally be in it wont it. I reckon as they already carry out a title search on the address you live at when you go on the dole so I bet they do this when you apply for the pension to see who is on the title. What they don't worry about is if it is mortgaged. Doesn't count that. Only interested in what is coming in - not going out so just get on with it.

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I see a right pickle looming when they try this one on for size and the Welfare Agencies think it is alright to pay the singles a bit more and thy can live with it - blooming heck who pays their wages - dock em!!!!!

and give us the money - what good are they to us if that is their attitude - Jack!!!!! like in I'm alright.

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And then we may not get to know more until Dec 09 when Ken Henry's tax review comes out and unless he does the right thing and suggests for instance that all who draw down an income from a company for say sitting on the Board and getting $400,000 average per board per year and then no one actually reports it to the ATO until the person does a tax return- if they do - and meanwhile can invest some of it and earn interest which will be reported and income like that.

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Blimey even Age pensioners who get a little extra over and above the bare bones pension have to do a return - because they know they pay us the pension.

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So then why do the big end of town get away without being taxed at source like all other workers are - in other words - lets hope he recommends all go onto the PAYE scheme - because folk - then they could pay us all $100 a week rise and never miss out of the billions extra collected that is not done now because?

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Do you think this too could have - quite by accident of course - governments do nothing about because these are the folk who authorise the donations to the political parties - you know those donations that are the power wielded by lobbyists on behalf of the donators.

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come on what have I missed out on the above situational front?

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Let hear from you more please - this is your income we are talking about and even if not now - will be in the future if you are knocked out in this recession which is now official.

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BigVal, I think you have covered most points, and very succintly.

Some interesting comments in that last article.

I'm starting to wonder....are they holding off releasing the report to in fact, have a look at this feed back from the various rumours floating....and then make up their minds what to do.

Whatever decisions are made, and when or if, where is the money going to come from?





ANY politician can increase the pension by $30 a week. The real test of Kevin Rudd’s mettle in the May Budget is how he will pay for it and whether his retirement income reforms stop there









In the six months to December 2008 an extra 31,000 people were forced on to the pension and the number of full pensioners grew by 76,000





[url=http://blogs.news.com.au/dailytelegraph/suedunlevy/index.php/dailytelegraph/comments/counting_the_cost_of_filthy_rich_pensioners/]Link[/url]

Thanks for that link Koko. Here are some bits I picked up also from this same article that are so outrageous in parts - I can only be cynical and say there is a definite agenda going on feeding these journalist with bits that are designed to get a feedback.



[b]It was the inadequacy of the age pension for single retirees who rent that spurred his Government’s inquiry into the pension but it has uncovered a dirty little secret - if you are wealthy and own your own home our pension system is overly generous.[/b]



[color=red]No one ever told my generation or any other to my knowledge that if we got married and struggled to pay off a house so that we had our own place in retirement that we would be penalised. In fact just the opposite and super never came into play for the working classes until late 80's and 1990 was when the mandatory 5% paid by employer started.



I had a laugh also over her concession card gives a pensioner $10,000 a year.

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Until very recently a married age pensioner only got $10,000 a year - now up to $11,000. Single around $12,500 so how could anyone run up bills on that to get $10K concession - not possible I reckon - pie in the sky.[/color]

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One solution being proposed is to simply give the card to every retiree and [b]reverse the incentives, so retirees are instead encouraged to maximise their retirement incomes.[/b] It will not cost the Federal Government much at all, as most of the pharmaceutical and power bill and telephone concessions it provides age pensioners are already extended to self-funded retirees who get the Commonwealth Seniors Health Card.



[color=red]Now this little gem got me beat - anyone sort out exactly what they are meaning?[/color]

Yes I question the $10,000 as well--I will do some calculations and see.



Seems like all smoke and mirrors to me.

Yes I question the $10,000 as well--I will do some calculations and see.



Seems like all smoke and mirrors to me.



Indeed - smoke and mirrors sum up the whole picture we are being fed piecemeal currently.





In Tassie we get a small concession on power which does not cover the standard charges before you turn on your fridge and hot water - no gas except bottled - and rates are capped at $325 a household. No free buses or much else and we pay same price for water as everyone else on meters - not all are on meters.

Oh and $56 a year for heating which does not go far and hasnt been put up for years seemingly! So apart from scripts for $5.30 what else is covered?

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Other states get more generous rebates on rates WA is 50% and SA gives rebates on bottled gas even - so it does vary.

I found this too that is interesting in that it give numbers of Age pension again of 2 million.



Pensioners facing long wait for help



* Michelle Grattan and Jewel Topsfield

* August 11, 2008



PENSIONERS must wait until next year for a rise in the base rate, despite a government inquiry showing single pensioners especially are doing it tough, including against international comparisons.



The Government is also re-opening the issue of whether pension bonuses should be paid as lump sums or built into the fortnightly rate.



A discussion paper prepared by Jeff Harmer, head of the Families Department, and released yesterday, shows the singles rate of only 60% of the combined couple rate is lower than the 62.9% average for the major Organisation for Economic Co-operation and Development countries. The Australian proportion is behind Belgium, the US, Britain, New Zealand, Austria, Canada and Ireland.



The current singles rate is $546.80 a fortnight, compared with the couples' rate of $456.80 per person.



For single pensioners who rent or live alone in their own home, the pension falls below a detailed "budget standard" needed to maintain a certain standard of living, the paper says. Yet for other aged pensioners it is above the standard.



Seniors groups called for an early increase of $60 a fortnight.



[b]Council on the Ageing executive director Sue Hendy said the pension for single people should be immediately boosted from 60% to two-thirds of the couple's pension. This would be about $30 extra a week. It would cost about $1 billion annually.[/b]



National Seniors chief executive Michael O'Neill said it was "simply not good enough" for the Government to say it understood pensioners had a problem but they should wait until the May budget - which would probably mean a July 1 change.



But Prime Minister Kevin Rudd, speaking in Seoul, said the Government "can't solve every problem overnight". He and Families Minister Jenny Macklin made it clear the Government would wait.



It will receive the last Harm er report in February, and is expected to act in the budget.



More than three-quarters of Australians over 65 receive income support; the aged pension costs the budget $22 billion annually. Pension rates have risen by more than 2% a year above inflation over the past decade, compared with a 3% rise for average households and 1% for low wage earners.



The inquiry found that even with the maturing of the superannuation system, the proportion getting the age pension would fall only slightly - although many more would receive only a part pension on top of their private income.



Ms Macklin said more than [b]half the two million people on full or part pensions[/b] had extra income of less than $20 a week and were struggling to cope with rising living costs.



She said one issue to be dealt with was whether an increase should be made in the fortnightly rate or the Government continue to pay annual lump sums. The bonus payment is sensitive politically, and there was a sharp reaction when the Government was thought to be considering wrapping the bonuses into the fortnightly payment.



Shadow treasurer Malcolm Turnbull said the pensioners had been the forgotten people in this year's budget. He said Coalition policy was under review.[b] Acting Opposition leader Julie Bishop predicted there would be no decision on pensions until the 2010 budget because the February Harmer report would fold into the Government's overall tax review, not due to finish until the end of next year.[/b]





source without actual story sorry but copyright to http://www.watoday.com.au/

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

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