Rebekha Sharkie (Mayo, Centre Alliance) Share this | Hansard source

I move:

That this House:

(1) notes that:

(a) the OECD:

  (i) calculates that Australia's expenditure on age pensions is currently 4 per cent of public spending, and is projected to be 4 per cent in 2050, which compares with 9 per cent and 10 per cent respectively for the OECD; and

  (ii) has stated that 'the old age income poverty rate in Australia is high at 26 per cent compared to 13 per cent across the OECD in 2015';

(b) the Benevolent Society:

  (i) released The Adequacy of the Age Pension in Australia: An assessment of pensioner living standards report in September 2016, concluding from its research that 'the age pension in Australia is inadequate'; and

  (ii) also concludes that 'home ownership constitutes the single biggest factor contributing to financial hardship among pensioners' and 'age pensioners who are renting, in particular those who are single, are the worst off';

(c) deeming rates dramatically affect the wellbeing of Australian pensioners; and

(d) whilst the Government has reduced deeming rates for the first time since 2015, it has not been adequately responsive to changes in the cash rate; and

(2) calls on the Government to:

(a) establish an independent tribunal to:

  (i) assess the base rate of the pension;

  (ii) assess the Commonwealth Assistance Rate;

  (iii) assess the deeming rate; and

  (iv) determine the best mechanism for regular review; and

(b) reduce the financial gap between age pensioners who are home owners and those who are renters.

Whilst, on average, Australians enjoy a very high quality of life, not all Australians get to experience this prosperity. OECD data has discovered that Australia's pensioners are the second-worst off in the world. The Benevolent Society and their Fix Pension Poverty campaign argue that the age pension in Australia is inadequate—I agree—particularly if you live in regional Australia. Almost all of the 1.5 million Australians who are receiving the full age pension are experiencing income insecurity, with almost one-third in poverty. Single female pensioners who are renting in the private market and have chronic health issues are, on average, the most financially disadvantaged.

The age pension differs from Newstart allowance in that it is not a working age payment, nor is it welfare. I want to underline that. The age pension is not welfare and should not be treated as such. It is a post-working-age entitlement. The role of the age pension is to ensure our elderly have the income they need to cover their day-to-day living costs and medical expenses. Many age pensioners are unlikely to be employed again or receive other sources of income. Furthermore, age pensioners are more vulnerable to government decisions and shifts in the economy, such as rising energy costs. I believe, therefore, that we need to establish an independent tribunal for social security payments to ensure that Australia's elderly are, indeed, properly supported on the pension.

Many of our age pensioners who live on or under the poverty line have to make sacrifices to ensure that they have the necessities. Many are missing meals or not using heating in order to ensure that they can visit the doctor or afford their lifesaving medication. Many also have become heavily reliant on charity organisations to continue to have access to affordable housing, meals and healthcare services. The rapidly declining rate of homeownership in Australia has meant that more age pensioners are renting in the private market.

The Benevolent Society found that those who are renting and living independently have higher rates of expenditure compared to those who own their homes, with single renters spending on average $220 more per fortnight than home owning pensioners. I want to say here that I also know of many age pensioners who own their own home but who, too, are struggling on the pension. While this data is from 2015, rent prices have only increased since then, and the government pension has not caught up. It is important that we relieve renting pensioners from this financial burden and close the gap between renters and homeowners. Home ownership is the biggest source of average Australian household wealth and gives many individuals the financial security to rely on the pension, particularly in those early years post employment.

The Benevolent Society is doing incredibly important work in this area through the Fix Pension Poverty campaign, and I really do encourage everyone in this House to help continue this conversation. I meet too many elderly people who cannot afford a new set of dentures, whose dentures are broken, who are waiting from pension payment to pension payment, and who are terribly worried about their council rates and heating bills. If you live in regional Australia, there are no buses, so you also need to have a reliable car in order to travel, even just to go and do food shopping. The cost, the burden, is greater if you live outside of the metropolitan area. I urge the government to properly look at this issue.

It is my intention with this motion to raise these important issues, because we need to ensure that there is a good quality of life for our elderly Australians, who've contributed so much to our country. Finally, I'd just like to close by thanking ANU intern student Krystal Guo. Krystal has worked on this matter with me. I'm very appreciative of her work here today on her first day in Parliament House. I commend this motion to the House.

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