Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Hansard source

I thank the member for Port Adelaide for his question and for his long-time campaigning for the pensioners in his electorate. There are around 30,000 pensioners who will benefit from the decisions the Treasurer announced last night. Yesterday was a historic day for Australia’s pensioners. More than three million age pensioners, disability pensioners, carers, wife pensioners and veterans service pensioners will get a pension rise.

From 20 September this year, single pensioners on the full rate of the pension will receive a $32.49 increase per week. Pensioner couples will receive a $10.14 increase per week. The increase will bring the single rate of the pension to two-thirds of the rate of couples combined. There will be an increase in the base rate for single pensioners and a new pension supplement for all pensioners to simplify the complex maze of payments. All existing pensioners will receive an increase in their total pension payments.

These are the most significant reforms to our pension system for 100 years. These reforms will help to cushion pensioners from the impact of the global economic recession, but they will also deliver a stronger, fairer and now a sustainable pension system into the future. Of course, the reforms have been welcomed widely, both by pensioners and by pensioner groups. I will just quote from a few of them. Michael O’Neill, from National Seniors, says:

We think (the pension rise) is a very good outcome. It delivers relief for the most vulnerable—single age pensioners …

From the Council on the Ageing, Ian Yates says:

After years of unfair treatment for single age pensioners, they have been recognised and large steps have been taken to rectify it. The new pension system is simpler, which is most welcome.

And Val French, from Older People Speak Out, says:

Recognition and understanding as last, and cheers in lifting the age eventually to 67. Those of us on a pension have greeted the budget with relief.

She goes on to say that she congratulates the government on its decision to move towards increasing the pension age to 67. That decision on the pension age has also been welcomed by business. If I can just quote Heather Ridout from the Australian Industry Group, she says:

I think it is a very sensible decision and it really addresses those intergenerational problems that are coming down the track.

As I said, these are major reforms and they have involved very tough decisions to make sure that the pension is sustainable for the long term.

I am pleased to tell the House that we have state governments also getting behind these reforms. Just this morning the South Australian Treasurer—I am sure the member for Port Adelaide will be pleased to hear this—has confirmed that the South Australian government has agreed to the Prime Minister’s request that the pension rise flow through to pensioners in public housing so that the pension rise is not gobbled up by rent increases. These reforms are essential. They are long overdue, decisive action to prepare Australia for the future.

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