House debates

Wednesday, 10 May 2006

Social Security and Veterans’ Entitlements Legislation Amendment (One-Off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Bill 2006

Second Reading

Photo of Mal BroughMal Brough (Longman, Liberal Party, Minister Assisting the Prime Minister for Indigenous Affairs) Share this | | Hansard source

I move:

That this bill be now read a second time.

The measures in this bill are a further demonstration of the government’s appreciation and acknowledgment of the contribution older Australians and carers have made, and continue to make, to our society.

As with past bonus payments, these new payments will be paid in the majority of cases before the end of this financial year and are possible because of the government’s careful economic management. This has delivered the capacity to give extra support to these members of the Australian community and acknowledge their valuable work.

The first bonus payment provided by this bill will go to older Australians. The 2006 one-off payment will be equal to the annual rate of utilities allowance, which is an existing entitlement to help older income support customers to pay regular household bills such as gas and electricity, and currently set at $102.80. This one-off payment will be made to people of age pension age, or veterans of qualifying age, who are receiving on 9 May 2006 a social security or veterans entitlements income support payment. Recipients at that date of mature age allowance, partner allowance or widow allowance will also attract the one-off payment.

The one-off payment of $102.80 will be shared between two members of a couple living together, if they both qualify for it. Otherwise, the whole payment will go to every qualified person in his or her own right. No household with at least one qualified person will receive less than $102.80.

Older Australians not actually receiving the stipulated payment on budget night will still get the bonus if they had claimed it by that date and subsequently have their payment backdated to cover that date.

Self-funded retirees will not miss out on the bonus payment—they will receive $102.80 per person if they are, on that same date, qualified or eligible for seniors concession allowance.

Carers are the second group targeted by this bill for bonus payments.

Carers receiving carer income support on 9 May 2006 in the form of a social security carer payment or carer service pension under the Veterans’ Entitlements Act will be paid a $1,000 one-off payment. Carers who receive the non-means tested social security income supplement known as carer allowance in addition to either wife pension or a partner service pension under the Veterans’ Entitlements Act will also be paid a $1,000 one-off payment. Any carer receiving carer allowance will be paid a separate $600 one-off payment for each eligible care receiver. Carers who have claimed the targeted payments on or shortly before 9 May 2006 and are subsequently granted with effect from 9 May 2006 or earlier will receive the payments.

Carers whose children qualify for a carer allowance health care card only will not be eligible for the bonus payment of $600. Carers who claim carer allowance after 9 May 2006 and whose payment is backdated due to the application of the carer allowance backdating provisions will not be eligible for the bonus payment, even though the backdated period will have included payment for 9 May 2006.

Neither of the special one-off payments provided by this bill will be subject to income tax, nor will either count as income for social security, veterans entitlements or family assistance purposes.

I commend the bill to the House.

Leave granted for second reading debate to continue immediately.

3:59 pm

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Shadow Minister for Childcare) Share this | | Hansard source

I rise today to speak about the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Bill 2006. The bill seeks to provide a one-off payment to certain older Australians, as the Minister for Families, Community Services and Indigenous Affairs has said. Those eligible for the payment include: firstly, people who have reached pension age by 9 May 2006 and are receiving income support under the Social Security Act 1991; secondly, people who are qualified for the seniors concession allowance on 9 May 2006, or who would qualify because they had lodged a claim for the seniors health card by 9 May and would be eligible for that card on 9 May; and, thirdly, people who are receiving widow allowance, mature age allowance or partner allowance for a period that includes 9 May by virtue of a claim made prior to that date. Fourthly, the legislation also provides for one-off payments to certain veterans and carers.

The payment rate for a single, a member of a temporarily separated couple, a respite care couple, an illness-separated couple or a member of a couple whose partner does not qualify for the payment will be $102.80. People receiving the widow allowance, mature age allowance, mature age partner allowance or partner allowance, in similar circumstances, will also receive that same amount. For people who are members of a couple, each of whom is eligible for the payment, $51.40 will be paid to each person. The amount for a person who is qualified or becomes eligible for a seniors concession allowance is also $102.80. Most of these payments will be made in June of this year.

Labor supports the payment of this one-off bonus to older Australians. Many older Australians, particularly those entirely dependent on income support, survive on very low incomes, and any additional financial assistance is very welcome to help them make ends meet, particularly in an environment where many of them are paying more for their petrol than they ever have.

I note that those seniors who are entirely dependent on income support have seen the smallest growth in disposable income of any household type listed in appendix A to the government’s budget overview. Despite the economic growth of the last decade, senior singles and senior couples entirely dependent on income support have seen a disposable income growth of only 17.1 per cent and 17.5 per cent respectively. This is the lowest rate, as I said, listed in appendix A to the government’s budget overview. This is the lowest level of disposable income growth of any of the household types listed by the government, and it does not reflect well on the government’s treatment of older Australians without independent resources.

With regard to payments to seniors in couples, Labor fails to understand why pensioner couples are getting only half the assistance that is being provided to self-funded retirees. Whereas a pensioner couple will receive the equivalent of only one payment of $102.80, self-funded retiree couples will be entitled to two payments, one for each member of the couple. I am sure that pensioner couples who are listening today will be interested to know and will be pressing their members of parliament, if they are government members, to explain why they are being provided with only half the assistance that is being provided to self-funded retirees. In an environment where their cost of living is increasing exponentially day by day, it seems like a cruel hoax to provide these older Australians with less assistance than will be provided to self-funded retirees who are of the same age and in very similar circumstances.

4:04 pm

Photo of Peter LindsayPeter Lindsay (Herbert, Liberal Party) Share this | | Hansard source

I suppose my electorate office would be typical of electorate offices across the country, and it certainly was very clear to me in the run-up to the budget that carers were looking to have this particular bonus extended to them by indicating to the government how important it was to them. Last night, the government delivered on the provision of the carers bonus package. There is no doubt that we should be looking after this segment of our community who look after others. That is what the one-off payments are about: they are there to look after people who look after others in difficult circumstances.

Carers Australia is the peak body for over 2.6 million people of all ages providing care for family members or friends with a disability, mental illness or chronic condition or who are frail aged. Carers Australia provides services and support to Australian carers through a network of carer associations in each state. Its national president said overnight that Carers Australia applauds the government’s recognition of carers in our community and that Carers Australia is again pleased that carers had been acknowledged by the Australian government. The government appreciates that recognition, and I know that our carers will also appreciate that recognition.

The Minister for Families, Community Services and Indigenous Affairs has outlined the technical detail in the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Bill 2006. It is quite straightforward—it is similar to what has been delivered in previous years—but the key is that this legislation will make sure that these promised one-off lump sum payments will be paid before 1 July. That is just fantastic news for our carers. So many government decisions that have been announced over the years have been implemented quite some time after the announcement. The government is moving extraordinarily quickly to make sure that money for these and other measures announced last night will be available basically immediately.

There has certainly been a very favourable reaction to the announcement that was made last night, which is now covered in this bill before the House. It has been made possible by the government’s ability to run a strong economy and its wherewithal to make these payments back into the community. The Treasurer and the minister have been very clear that, where we can, where we are able to, we will return resources to the community that provided them in the first place.

I also note in last night’s budget the very strong financial performance the government has been able to achieve. We have heard all the reasons why that is, but carers in Australia should also recognise that they are the beneficiaries. Because of that, I support the legislation and I am pleased that the opposition is supporting the legislation. I commend the bill to the House.

4:08 pm

Photo of Alan GriffinAlan Griffin (Bruce, Australian Labor Party, Shadow Minister for Veterans' Affairs) Share this | | Hansard source

I am pleased today to stand to support the speedy passing of the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Bill 2006. I want to make sure that it is clearly understood that the opposition has facilitated this legislation going forward as quickly as possible. I have no doubt that other members would have liked to have spoken on the issue. I will make some brief comments today, but if I had had a bit more time to prepare I can assure you that I would have had more to say about the circumstances around the issue of carers in our community.

Carers in our community perform an amazingly important job and it is right that, on this occasion, the government have recognised that with the payments they have provided. It is good to see a situation where that has been recognised in the community. We know that in two previous budgets payments have been made to some carers on that basis. One of the good things about this legislation is that it recognises the fact that many Australians who care for veterans have in the past been excluded from receiving those payments and that is going to be remedied. I welcome that; I think it is long overdue. I think it is something that the government ought to be commended for, but I would remind the government that in previous years payments have been made but many carers of veterans missed out on those occasions.

The circumstances of caring and being a carer are difficult. Many carers are, in fact, elderly and in a situation where they are caring for people who are also elderly and with disabilities. In those circumstances the sorts of struggles they deal with are absolutely phenomenal. It is not often that we hear a lot about what actually occurs. In my travels as shadow minister for veterans’ affairs, on many occasions the issue of carers has been raised with me and the sorts of circumstances faced by particular carers.

I would not want to say that it is harder in the veterans community than in the general community, but a lot of people who are carers of veterans deal with multiple problems and the circumstances can be difficult, even before you start going to the question of the general problems that occur as we get older. Some months ago I was at a meeting of the Extremely Disabled War Veterans Association at their annual conference in Hervey Bay in Queensland and this issue was raised with me at the time. Subsequent to that, I got some correspondence from one of the people who was there, because, in order to make a case for why relief was needed, I had asked for examples of the circumstances people were being faced with. I would like to read from a letter from someone who was involved to give you an idea of the sorts of circumstances that people are dealing with, particularly with respect to veterans. He said:

Dear Mr. Griffin,

I had the pleasure of meeting you at the National Conference of the Extremely Disabled War Veterans Assoc., held at Hervey Bay Queensland 2nd Oct., 2005.

At that meeting you asked for as many reasons as possible as to why E.D.A. pensions and carers conditions should be improved. That we should all go back to our individual associations and come up with the real issues that will help. I have already written one letter and sent it to our National President, but concern for my members has forced me to write another. Mr Griffin I am not only the President of our Newcastle Association but also Welfare Officer. I have during the month of November and December been most busy visiting the sick and helping where I can. I have just returned home from visiting two people in hospital, a husband and wife. This is just one of the reasons, I write to you with a great feeling of urgency.

The husband is an E.D.A., member he is ex-army and 92 years of age, his wife has been his carer for nearly 60 years. She was admitted to hospital for a triple by-pass to the heart. The husband who is unable to take care of himself was also admitted to the same hospital (luckily) with kidney problems. I have no doubt that his wife’s condition has in some way been caused by the extra work and stress of the years as carer.

Another member last year was admitted to hospital with fluid on the lungs, he has since been sent home with oxygen equipment so that his wife who is his carer can administer oxygen when required, and she has also been his carer for many years.

Another member who is at risk of losing his right arm after 4 years and still being treated with trips between hospital and home, his wife is his carer and she is on the verge of a nervous breakdown.

Another member with heart problems, whose wife has been his carer all these years, has just entered hospital for a knee operation which probably was bought on by extra work caring for her husband.

Another member I visited is almost deaf and unable to walk very far is being cared for by his wife, who also is in a lot of pain but will not give up caring for her husband.

I myself have to watch my wife do the heavy work around the house, listen to my complaints about my aches and pains, but she is a carer and continues knowing things will only get worse not better.

Sadly I have to say over the last few months we have had deceased members. Mr Griffin, if we were to stop and think about what it takes to be a carer the extra pressure the extra work. what it does to the carers own health, the many nights of lost sleep and the saddest part of all not being able to enjoy the last few years together the way we should.

All E.D.A. members suffer war caused injuries and those that care for them should also be cared for by the Government, by providing free health care, free transport, a card that recognisers them as a carer.

Our many years of caring, the deterioration of the health of veterans carers should also be classed as war caused problems. It is a fact that several of our members are so sick, that the wife’s are suffering by being abused by their sick husbands causing more stress on the wife. The wife puts up with the abuse because they know their husbands are sick. The wife wants her husband kept at home with her and tolerates the situation even though it does affect her health.

That is just a selection of some of the concerns raised by veterans, which will give you an idea of the sorts of circumstances faced by many carers in the community. Particularly in the veterans community, there are heightened problems. It is good to see that, on this occasion, the government has recognised that and been able to come forth with a payment that takes into account the circumstances of those individuals. However, I would also urge the government to look at the fact that, on the previous two occasions when this payment was made, many people in those circumstances missed out and I do not think that was fair. I understand that this area is complex and, therefore, certain issues exist that must be dealt with. However, I would also say to the government that these are some of the most deserving people in our society. They are part of a group that does a tremendous job in dealing with the needs of many of our frail and disabled, which group includes those who care for veterans, who also have done a very great job for our country.

I urge that the bill be given a speedy passage. I am sure the government notes that this legislation is going forward with our blessing and our support. However, I assure the government that many members would have liked to have had the opportunity to speak on this bill or to speak on it for longer. I myself would have liked more time to prepare my remarks—not that I think my contribution has not been quite good!

Opposition Member:

Opposition member interjecting

Photo of Alan GriffinAlan Griffin (Bruce, Australian Labor Party, Shadow Minister for Veterans' Affairs) Share this | | Hansard source

I have to say that I am the only one who has ever judged it that way. Rather than being flippant for too long, I would say that this is an important initiative and I wish it a speedy journey to the other place.

4:17 pm

Photo of Mal BroughMal Brough (Longman, Liberal Party, Minister Assisting the Prime Minister for Indigenous Affairs) Share this | | Hansard source

in reply—I thank the opposition whips for their courtesy and cooperation in passing through this place and sending off to the other place today the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Bill 2006. Two issues were raised by the shadow minister. The first was that, in looking at the government’s budget papers, she stated correctly that the disposable income of seniors had increased by 17.1 per cent in real terms—I think they were her words. It is good news to think that, rather than having gone backwards or staying the same, their position has improved. In fact, this improvement results from indexing pensions twice yearly to either CPI or wage increases. If we had not taken such a step, that 17.1 per cent increase in disposable income would not have occurred and seniors would be far worse off today.

The second issue she raised relates to why self-funded retirees receive $102.80 per person and pensioners receive $102.80 per couple. This goes back to an election commitment. For a number of years now, the Howard coalition government has been saying to the states, ‘We will provide you with direct cash so that the benefits that are enjoyed by pensioners in the form of travel, rates and a number of other subsidies can apply to self-funded retirees.’ Unfortunately, the state Labor governments have not agreed to our assistance there. Finally we gave up in exasperation and, instead, paid the money directly to the self-funded retirees. So the money was put there in place of what they would have been receiving if the states had accepted the federal government’s contribution, added their own contribution and provided that range of services. I hope that clears the matter up for the member for Sydney.

I welcome the words of the honourable member for Bruce, who has just spoken, particularly his reference to a Mr Carter. I believe we should all acknowledge that there is not a more hardworking group in our society than that of carers. The heartfelt conditions and circumstances he spoke of are only too real and quite often it is the spouse whose health ultimately breaks down through giving to their partner so much in love, time and effort. We are so pleased that we are in a position to be able to give this recognition. It is not a fix-all, but it is a clear recognition from the Howard government—three years in a row now—that, because of our good economic position, we have been able to acknowledge that effort, thank people and show them they are cared for in a very practical way. With those words, I thank the members opposite for their cooperation and I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.