Kevin Rudd (Griffith, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister support Labor’s call for a Senate inquiry into the impact of the rising cost of food, petrol, gas, electricity and dental services on the living standards of older Australians?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Let me say to the Leader of the Opposition that we would be delighted to have an inquiry into matters affecting older Australians. I can assure the Leader of the Opposition that the government would be very happy to see a Senate inquiry. It is, of course, for both of us to leave it to our peers in another place to decide these matters, but we certainly have no objection.

It would allow, for example, the government and other sections of the community to review many of the measures that have been introduced by this government to assist older Australians. It would allow us to remind the opposition and the general public that, from 1 July this year, the most spectacular and beneficial change to superannuation in Australia ever will occur, to the benefit of Australians over the age of 60—which many would not regard as particularly old, so let us say Australians of mature middle years—but that is only the half of it.

In September of this year, there will be an effective halving of the assets test on the aged pension. You will remember that the assets test was brought in for the first time in 1983 by the Hawke government, and effectively this is the first major revision and major expansion of the eligibility criteria applying to the assets test. We could remind the opposition that it was this government that legislated to ensure that the pension was maintained at 25 per cent of male total average weekly earnings as well as indexed to inflation.

We could talk about the introduction of the senior Australians tax offset; the pension bonus scheme; the utilities allowance; the bonus payments to older Australians and carers in recent budgets, including in this year’s budget; and the relaxation of the assets test for the age pension by increasing the maximum amount of private land attached to the principal place of residence that is exempt from the assets test. We could also remind the opposition that it opposed the introduction of the Medicare safety net, which is of enormous benefit to older Australians. I remind the Leader of the Opposition that 80 per cent of all medical and pharmaceutical costs are run up by older Australians.

Can I just say to the Leader of the Opposition that, since March 1996, single and partnered pensions have increased by over 49 per cent, which is an increase of 19 per cent in real terms. Let me also remind him that 85 per cent of people over age pension age qualify for an Australian government concession card—that is, the Commonwealth seniors health card, the pensioner concession card or the health card.

I could go on, but let me say that the government will welcome this inquiry. It believes that it has consistently, over the last 11 years, introduced measures to ease the cost pressures on older Australians. I do not pretend for a moment that everything that could be done has been done, but I do believe that older Australians, in recognition that older generations have contributed enormously to the legacy which is the modern Australia, deserve our concern, our compassion and our respect. The government has done its best over the last 11 years to demonstrate that concern, compassion and respect. We are not ashamed of what we have done. We have not been perfect and there is more to be done, but let me say to older Australians that the stability, the low inflation, the good economic times, the alterations, the dividend imputation credits and all the other things that have been brought in as part of tax reform have all worked to the great benefit of older Australians and we will be very happy to talk about our record before the Senate inquiry.