Luke Simpkins (Cowan, Liberal Party) Share this | Hansard source

What a free-ranging debate this will clearly be. Obviously I endorse this bill. The shadow minister raised a number of very interesting issues. She talked a fair bit about reminding pensioners—and other matters as well—so I will also do some reminding. As we know, before the last election there was a promise of no changes to pensions during this term of government. When we talk about changes from 1 January 2017 it can be very clearly pointed out that that is indeed after the first term of this government. The changes that were introduced and have been passed by the Senate were very clearly to wind back the access to part pensions for those who have assets exceeding $1 million, and to a degree under $1 million as well. We talked about self-funded; self-funded it will be.

Labor talk about how they will remind people about what passed in that bill yesterday. I too will take great pleasure in reminding people, particularly in suburbs like Girrawheen and Koondoola—the Girrawheen Koondoola Senior Citizens Centre, Alexander Heights seniors centre, Ballajura seniors centre, Wanneroo seniors club—that, under the changes this government has passed, from 1 January 2017 they will be $15 a week better off. Clearly, from what the opposition have said, their intention is to take that away. So for all those age pensioners in Homes West houses throughout the electorate of Cowan, in yesterday's vote the opposition of the Labor Party to the bill was about making sure that that $30 never appears. I will take great pleasure in reminding people of that. And I will not wait till the next election; I will be talking about it very soon indeed. That will be a great opportunity. This bill was about making things fairer: about making sure that the support payment, the welfare payment, goes to those who are in the most need. Much has been said about the increase of the pension age to 70. Sixty-seven is okay as far as the Labor Party is concerned but 70—that is just a bridge too far. It is most disingenuous of them to talk in those terms.

This bill will add another $465 million in savings. That is very important. The entire country will remember that, at the change of government in November 2007, there was money in the bank. The federal government had run things in the black. Then the series of events took place whereby this country went deep into the red. There was only one side in government at that time, and that was obviously the Labor Party. What they did to this country, the intergenerational debt that they have inflicted on this country—on the children, toddlers and babies of this country—is an absolute disgrace. They can never walk away from that. What has been achieved since the budget this year is that $3.5 billion of savings have already passed. That is good news for future generations of Australians.

This bill will give a fair assessment of someone's contribution to their pension, which means the government will be able to be more equitable when it is determining who needs support and who can support themselves. Around 65 per cent of income support recipients with payments from defined benefit schemes will not even be affected by this measure. Being ex-service—ex-Army—myself I would also say that this does not apply to those on the Defence side of things. By that I mean that service pensioners will not be affected and defined benefit income streams from military defined benefit schemes will also be exempt from the proposal. I certainly welcome that element as well.

This bill really does address the anomalies in the income test treatment of some defined benefit income streams that have resulted in highly concessional income test deductions for some people. Under this measure, the social security income test deductible amount for the defined benefit income streams will be capped at a maximum of 10 per cent of gross payments from 1 January 2016.

Without delaying the House anymore, it is certainly my view that this is a very good bill. I am very pleased that it will, by all accounts, pass today. It will deliver important savings to help with the budget bottom line and to help get the country back to a sustainable level. It is fair and it is absolutely appropriate that the House should pass it.

I would just finish by saying, again, that I very much appreciate the passing of the bill about fair and sustainable pensions last night. Particularly, I think it is a great thing for those who are on the most modest of government provided incomes. The majority of pensioners will be $15 a week better off. That will be greatly welcomed in the electorate of Cowan and I certainly look forward to telling as many pensioners about it as I can.

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