Michael Sukkar (Deakin, Liberal Party, Shadow Minister for Social Services) Share this | Link to this | Hansard source

It should come as no surprise to the House that we will be supporting the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022, and we'll be supporting this bill because it delivers on an election commitment from the former coalition government to increase the limits for the Commonwealth seniors health card. This is good policy, and this is coalition policy, because we understand that every single dollar—especially for those Australians who are no longer working, who are in their retirement—is very important.

On 2 May the coalition announced that, if re-elected, we'd increase the income test threshold for singles from $57,761 to $90,000, to give more seniors access to the concession card, and that we would raise the couples threshold from $92,416 to $144,000.

Labor quickly adopted this coalition policy and are pretty shamelessly trying to rebrand it as their own policy here today. They won't be the first government to have done that, but they are very shamelessly doing that, with one important problem. In the first few weeks of this government, one of the hallmarks has been broken promises, and today, with this bill, we see another broken promise. The media release that Labor released very shortly after we made this announcement, said:

Labor will widen eligibility for the Commonwealth Seniors Health Card, in line with the Government's announcement today.

The government then being the coalition government. It went on:

We're not interested in playing politics when we see a good idea.

And—this is the great moment of irony:

Unlike the Morrison Government, we can be trusted to deliver on our announcements for older Australians and pensioners.

You have there an unequivocal adoption of the coalition policy by the Labor Party, with one problem for the government. The announcement from the coalition was that this measure would take effect from 1 July this year, from the first day of this financial year. This bill states that the measure will take effect from 20 September this year, which is more than three months later than was promised.

You see a succession of broken promises now from a very, very brief period of time in government. We've seen those opposite not willing to repeat their commitment to reduce power prices by $275—the number 275 cannot be spoken by those opposite. When you add all of that up—and here we have another bill that, in a small but significant way, breaches another pre-election commitment—it is very disappointing. Nevertheless, we will support the bill, because, even though it's later than they promised in the middle of the campaign, our view is: better late than never. And we'll never, obviously, say no to good coalition policy being adopted by the government.

Importantly, these changes, late though they are, will give an extra 50,000 older Australians access to more affordable health care and medications to help ease their cost of living. At the Commonwealth level, all cardholders are eligible for cheaper medicines and health care, and they may also be eligible for state, territory and local government savings that are often used, including for discounted rates, electricity and gas, ambulance, dental, eye care, recreation and public transport.

This coalition commitment is the first change, outside of indexation, to the income threshold of the Commonwealth seniors health card in over 20 years. Currently, more than 436,000 Australians aged over 67 who are not already receiving a pension or benefit, have a seniors health card. As I stated earlier, with the additional 50,000 that will now become available, this will mean that more than 486,000 people will become eligible, or an 11 per cent increase.

In our view, in my view and in the coalition's view, senior Australians, who have worked hard and made our country what it is today, deserve our country to recognise that effort and to recognise that we are standing on their shoulders. This is a small but important way that we can demonstrate that in a tangible way. The coalition, as I stated at the outset, will be supporting this bill, supporting good coalition policy. Good on the Labor Party for taking it on and for adopting coalition policy, but they really need to be held accountable for making sloppy promises in the election that they really have no intention of keeping. They adopted our policy holus-bolus in the campaign, saying that this would commence on 1 July. They wanted to spend a lot of time before they reconvened the parliament, which has led to this now not being available until 20 September. That's another broken promise from this government. But as I said, it's better late than never, and of course we will be supporting good coalition policy.

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Skills and Training) Share this | Link to this | Hansard source

I rise to support this very important legislation. As the shadow minister indicated, it has the support of the opposition, and it's a realisation of a commitment that the Albanese Labor government made in relation to providing support for seniors in this country. Clearly, it's a very significant matter. As we know, there have been sufficient efforts to provide support for people. Cost-of-living pressures are such that we need to do what we can to alleviate those pressures. We have inherited probably one of the largest public debts any government in this country has inherited. It is now well over $1 trillion of debt—debt that was accumulated by the previous government, and most of which was accumulated prior to the pandemic. Whilst, of course, we supported measures by the previous government in responding to the pandemic, to support the economy, to support business and workers and the like, unfortunately I think in some part they failed. There was expenditure on rorts and other things that need to be cleaned up by this government. We want to make sure that seniors in this country are given support, and that's why we're looking to ensure that this legislation is passed. This will lift the income limit for the Commonwealth seniors health card. I disagree of course with the minister.

Honourable Member:

An honourable member interjecting—

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Skills and Training) Share this | Link to this | Hansard source

Okay, well, I'm happy to cede to my colleague. I was speaking to ensure the flow of the House, waiting for the next speaker. I'm not sure if there's another speaker on the other side, but if my colleague is willing to finish—I will just say this, though. This important legislation. We're glad that the opposition supports it, and it will provide relief and support seniors in the country.

Peter Khalil (Wills, Australian Labor Party) Share this | Link to this | Hansard source

Over the first sitting fortnight of parliament, the Albanese Labor government has taken real action on issues that affect everyday Australians, and this particular bill will lift income limits for the Commonwealth seniors health card, seeing more self-funded retirees become eligible. The action of this bill would ease the increase in cost-of-living pressures that so many senior Australian face. It is something I am committed to in my electorate of Wills, and I know all my colleagues are on this side. In particular, this will ease the cost of concessional medicines and medical services, the importance of which we are all conscious of anyway, but even more so during the pandemic which we've experienced. This will mean an increase in the income limit to $90,000 for singles, up from $57,761, and $144,000 combined for couples, up from $92,416. This will expand access for more than 44,000 people from September this year, increasing to more than 52,000 people in the year 2026-2027. I commend the Minister for Social Services for introducing the legislation in the first sitting fortnight, showing that the Albanese Labor government understands the real cost-of-living pressures of Australians.

I also want to take this opportunity to speak more broadly to the economic concerns of retirees and senior Australians in my electorate of Wills. As an urban electorate in the heart of Melbourne's northern suburbs, Wills has seen a lot of change over the decades. More and more families, students, young professionals and emerging migrant groups have moved to the area and created the wonderfully diverse community I'm fortunate to represent. This has coincided with a significant increase in house prices and associated costs, like council rates and land taxes. Whilst homeowners accept that there are costs associated with homeownership, senior Australians are undoubtedly feeling the pinch as costs continue to rise. Whilst many of these senior Australians may have assets, likely bought decades ago at much less than their current value, they are often income poor. It's a common problem: asset wealthy, asset rich; income poor. Nowhere is this more obvious than in the southern half of my own electorate—in Brunswick and Coburg in particular.

Decades ago, back when former Prime Minister Bob Hawke represented the seat of Wills—I have illustrious predecessors—they were not the highly sought after suburbs that are now known for their cultural and economic opportunities. They were much more working class, and a much lower socioeconomic demographic was represented in those suburbs. They were working-class suburbs, effectively—and they still are to a certain extent, but were much more so 20, 30 or 40 years ago. They were home to working families and new migrants who worked exceptionally hard to give something back to their country, have a good life for themselves and their children, and set themselves up.

Like any Australian, they dreamt of owning their own home, and many of them at the time were fortunate enough to do so after decades of hard work. But today they face a situation where their home value has increased but their income has not. In fact, it has very likely declined in retirement. Now, I know what many people—in particular, younger Australians and those unable to buy their own home—may think: 'So what?' And that might be a fair response, as the prospect of homeownership remains so far out of reach and they are often met with ridicule, with suggestions such as 'Give up the avocado toast,' or, 'Don't eat kale for breakfast,' or, 'Just get a loan from your parents'—we heard that from the previous government's ministers—often coming from those on the other side of this House.

In my job as the member for Wills, I represent an electorate that is home to both a lot of young and a lot of older Australians, and I don't think their interests should always be framed as competing interests. I think that's false; it's a false dichotomy. It shouldn't be the case that we expect older Australians to be so pressured by the cost of living that their only choice is between poverty or selling their family home. For many, it's the first and only home they've ever known, the home they raised their family in, the home that they've celebrated in, the home that they have cherished memories of. They are not big developers or property magnates. They are everyday people facing the prospect of being forced out of their home. That is what is happening by stealth in many communities across the country as a lot of inner city councils continue to increase rates and fees. This is something I've raised on numerous occasions on behalf of my community, including with representations to local councils and the state governments as well. At the end of the day, these people are not asking for a free pass but for common sense and compassion that considers decades of context rather than just the challenges of the day.

At the same time, I know that when I speak to senior Australians they are often worried about the unfairness facing young people, whether it be the staggering cost of homeownership, the insecure nature of the workforce or the threat of climate change. These are such important issues, ones that the Albanese government has taken action on in the first sitting weeks of our government, including the passage today of the first genuine plan in a decade to tackle climate change. These are issues that senior Australians are talking about all the time, because it is an electorate which is compassionate, regardless of your age group, and an electorate where people do look out for one another.

When we make decisions in this place, and indeed at all levels of government, we need not pit groups of Australians against each other as if they have competing interests. The choice is not between allowing senior Australians to stay in their family home or supporting homeownership for young people. That's false. It's a false choice. The choice is about taking real action to make both a reality and to ease the cost of living and other challenges facing Australians from all walks of life and backgrounds. As the Prime Minister has said, government should be about bringing people together—less about conflict; more about getting things done. This is what we are doing by expanding access to the Commonwealth seniors health card. And it is what we will continue to do in this government, with massive investments in education, housing, renewable energy, jobs, aged care, health care and child care.

For the seniors in particular, we will freeze deeming rates at their current levels for two years, protecting around 900,000 age pensioners and other pension recipients from interest rate rises—making sure pensioners can keep more of their money in their pockets, making medicine cheaper, cutting the cost of medication on the Pharmaceutical Benefits Scheme from the current maximum of $42.50 to $30, delivering more affordable housing so older Australians who don't own their own home won't find all their pension eaten up by rising rents, delivering 50 bulk-billed Medicare urgent care clinics. We will also put the 'care' back into aged care by ensuring registered nurses are on site 24/7. It's about improving standards of care and nutrition and ensuring better oversight of aged-care funding.

These are just some of the measures that an Albanese Labor government will take to ease the cost of living and improve the quality of life for older Australians, because older Australians deserve respect in their senior years. They deserve a government that will be on their side when it comes to easing the cost of living and accessing quality health- and aged-care services. And they deserve a government that will recognise their decades of contribution to our society and to our country by looking after them, by meeting the obligation that we have as a government to make sure that we fulfil our commitment to them, in the same way they have committed to this nation.

It is not just what we should expect in an egalitarian country like Australia; it is what we should champion as creators and passers of public policy and legislation. I know this is a priority for the Albanese Labor government. We see that today with this bill and the other legislation debated this past fortnight. I, for my part, will continue to advocate for real action that makes a positive difference for my community as we deliver a better future for all Australians, young and old.

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

I rise to speak in support of this bill, the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022. This March the age pension was increased by 2.1 per cent—by $20.10 for singles, taking it up to $987 a fortnight, and by $30.20 for couples, taking it up to $1,448.80 a fortnight. While touted by the former government as the largest increase since 2013, the 2.1 per cent indexation lagged behind the Consumer Price Index trimmed mean annual inflation, which excludes large prices and falls, which increased to 2.6 per cent in December 2021.

This was the highest it has risen since 2014, according to the Australian Bureau of Statistics. This means that cost-of-living increases are hitting age pensioners' budgets especially hard. Mayo is the oldest federal electorate by median age in South Australia and it is in the top 10 nationally. Older people in my community often share their concerns with me regarding the rising cost of rents, household expenses, council rates, power, petrol and services. The cost of health services and products are also top of the list of my constituents' concerns, whether it be the rising cost of out-of-pocket expenses for procedures and prescriptions or the diminishing number of bulk-billing doctors. In Victor Harbor, where the average age of residents is just over 60, there's not been a general practice that uniformly bulk-bills pensioner and concession cardholders for many, many years.

While costs continue to climb, this bill represents one practical way in which we can help to ease financial pressures for older Australians receiving the age pension. This bill will hopefully increase the yearly seniors health card adjusted taxable income limits, including deemed income, from $57,761 to $90,000 for a single person and from $92,416 to $144,000 for a couple. This benefit will help 50,000 self-funded retirees, who will now become eligible for the seniors health card. I've got to say that we don't talk enough in here about the challenges faced by self-funded retirees. Now they will be able to access concessional co-payments for the Pharmaceutical Benefits Scheme, for medicines' concessional thresholds, for the PBS safety nets, at the doctor's discretion, and possibly even bulk-billing when they go to see their doctor. Co-payments for senior health card holders for PBS listed medicines will be reduced to $6.80 maximum, down from $42.50, for PBS listed medicines. They'll also be provided with access to other linked concessions from state and territory governments and private organisations. So this is incredibly welcome.

This is one of many initiatives that are required to ease the financial distress experienced by many older Australians, and there is much that we can do to that end in this place. For example, earlier this week I moved a motion saying, 'Let's let pensioners work without penalty.' We know there's a huge workforce shortage in our nation, and this could be a real game changer for both employers and older Australians. National Seniors found that one in five of the pensioners they surveyed said they'd be really keen to work again. They don't want to deal with Centrelink and the low threshold, where they're effectively earning $37 a day and then having to interact with Centrelink or lose 50c from every dollar earned in their pension. There are many seniors struggling in our community. Some are self-funded retirees and some are on the pension. It's our job in here to do the very best for our older Australians.

A related issue, which I hope the minister will consider, is that, right now, when you are applying for the pension, if you are in a $5 million home somewhere in metropolitan Melbourne or Sydney, and if that is your only asset, you are eligible for the pension. However, if you are a senior Australian from rural or regional Australia, and your house is on 20 or perhaps 40 acres, there are a whole lot of rules around whether you can get the pension. Effectively, for any blocks over two hectares in size, unless you fit some criteria, the rest of that property is included as part of your assets. I don't know if too many people in here have had a small property, a farm or a farmlet. You can't make a lot of income on those remaining 15 hectares if you're on a 20-hectare property. So I would urge the government to look at the two-hectare rule and lift it to 10 hectares. It just makes good sense. How can we have that inequality, where the home people in rural Australia live in is perhaps worth a lot less money than the home of those living in inner-metropolitan regions or metropolitan cities of Australia, and yet one qualifies for the pension automatically, because that's their only asset, and the other one doesn't? I don't know where this rule came from, but two hectares is incredibly small. A lot of people in their 50s are making a tree change—perhaps they're on 20 hectares—and they get to retirement age and they don't meet the criteria. They are considered to have the ability to make an income on the rest of that property, beyond the two hectares, and therefore they miss out on the pension because of that rule. I urge the government to have a close look at that, and I will be writing to the minister accordingly.

To come back to this bill, this bill goes a long way to assisting our older Australians, and therefore I commend this bill to the House.

Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I also rise today to speak on the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022. This bill increases the income limit for eligibility for the health card. It really is an overdue measure, and it will benefit so many seniors right across the country. As we all know, after a decade of mismanagement and neglect under the former Liberal-Nationals government, the cost of living in this country is soaring, and the cost of health care has soared as well. In particular, the former government put primary care in crisis, with the average out-of-pocket cost for GP visits increasing by 60 per cent over the past decade. This is impacting our older Australians severely. Remember, our seniors built this country. They paid their taxes and raised their families, and they must be treated with dignity and respect. They have that with an Albanese Labor government. And it's an Albanese Labor government that will increase the income limits for the Commonwealth seniors health card. This will see more in the pockets of our seniors, because we want to help ease the costs they are currently facing. Our government went to the election with a plan for a better future for Australians, and we are delivering on that.

The Commonwealth seniors health card serves those who have reached age pension or veteran pension age but don't receive any social security benefits or payments, due to their income or assets. The card provides eligible seniors with a number of beneficial health concessions, including concessional co-payments for Pharmaceutical Benefits Scheme medicines; lowered PBS safety net; extended Medicare safety net; some bulk-billed visits to the GP, at the GP's discretion; and, in some instances, other concessions, including for public transport, utilities and council rates. So there are a range of benefits.

This will assist seniors because, with the Commonwealth seniors health card, medicines under the PBS are cheaper. Medicines that might have cost $42.50 under the PBS will not exceed $6.80. The seniors health card also provides access to the lowered PBS safety net from July this year. This threshold was lowered to $244.80, allowing cardholders to receive their PBS medicines for free upon reaching the lowered threshold.

Accessing these benefits really translates into savings for our seniors, particularly with those medicines that they may access more regularly, such as blood pressure and cholesterol medications. In addition, cardholders will gain access to the extended Medicare safety net, and that means, once the threshold is met, a Medicare rebate of 80 per cent of out-of-pocket expenses for the remainder of the calendar year. That really is a fantastic move.

As I said, the seniors health card can also provide for bulk-billed visits to the GP if the GP extends that eligibility to the cardholders. What's also great about this card in some states and territories—there are variations—is that cardholders may receive discounts on their property and water rates, electricity and gas bills, ambulance costs and public transport, just to name a few. That makes a huge difference with those day-to-day costs.

This bill increases the income limit for a single person from $57,761 to $90,000 a year and, importantly, may apply to a person who is a member of an illness-separated couple or a member of a respite-care couple. For a couple, this bill increases the income limit from $92,416 combined to $144,000 combined. These changes will allow approximately 52,000 self-funded retirees and seniors to become newly eligible for the card. The new income limits will also apply to both current and future cardholders and claimants.

This bill is a very welcome cost-of-living relief for our older Australians. I know in my electorate and throughout the country this has been an issue that many have raised for so many years. The Albanese Labor government is delivering on our commitment. This will make a big difference to many seniors. We're committed to restoring affordable and accessible health care for all Australians.

The Commonwealth seniors health card has been in place since 1994 as a means of providing access to health concessions for self-funded retirees. Increasing these income limits is a very important move that will affect the lives of many self-funded retirees as they deal with the costs of health care and the cost of living. By increasing the income limits our government is taking practical steps to really ease those cost-of-living pressures. I know how much it will help people across the country and, indeed, in my electorate of Richmond. I commend the bill to the House.

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

I rise to support the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022 because this bill delivers on an election commitment of the former coalition government to increase the income limits for the Commonwealth seniors health card. This is important to the electorate of Casey because we have 2,812 people on the Commonwealth seniors health card, 15,729 on the age pension and around 24,000 people aged over 65.

On 2 May the coalition announced their policy to increase the singles income test threshold from $57,000 to $90,000 to give more senior Australians access to the concession card. The couple threshold would also increase from $92,000 to $144,000. I heard from many of my constituents during the campaign of the need for more support for aged and seniors, so I am so glad that this policy has come through. I note that Labor quickly adopted this coalition policy during the election and they're now obviously trying to claim it as their own. But it is great that this is being delivered for senior Australians.

The measure also gives an extra 50,000 older Australians access to more affordable health care and medications to help ease cost-of-living pressures. The cards are available to Australian residents over age pension age who are not already receiving a pension and have an adjustable taxable income under the threshold.

We will of course be supporting this bill, as I said, because this was a coalition initiative, although it's disappointing to note that Labor have decided to push the start date out to 20 September. It was originally announced for July. As we know, many Australians, particularly our older Australians, are struggling with rising inflation and need support straightaway. It's another example of the current government not having a plan to help Australians today or this week. They are pushing off to September initiatives, like the jobs summit. It does not help anyone today. This initiative to support Australians should have been put in in July, but I'm glad it is coming in—better late than never.

Currently more than 436,000 Australians aged over 67 years who are not already receiving a pension or benefit will have the seniors health card. Senior Australians have worked hard to make Australia all it is today and it is important that the country takes care of them in return. This is a good policy. I only hope Labor adopts more of the coalition's policies to ease the cost-of-living pressures on seniors and, indeed, all Australians. It's another example of why this government needs an economic plan to deal with the challenges coming our way. There's increasing pressure with inflation and increasing pressure with rising interest rates. We need a plan to deal with these pressures today.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

I rise to support the coalition's election commitment to increase the income thresholds for eligibility to the Commonwealth seniors health card. It was a great day in the campaign when we announced this, and not that big a surprise when the Labor Party dramatically and rapidly said, 'We'll do that as well.' This legislation changes the eligibility income threshold to $90,000 adjusted taxable income for singles and $144,000 for couples. It is a dramatic increase in eligibility. It is estimated that nearly 50,000 people will now be eligible for the Commonwealth seniors health card. Self-funded retirees are the great economic heroes of our country. They are in a position to finance, largely, their own retirement and take an enormous burden off the taxpayer by way of funding their retirement rather than needing to draw on the appropriate supports that are in place for senior Australians who are eligible. The Commonwealth seniors health card is an important indication and a practical support, and one that they deserve. It indicates to them that we value the fact that they have provisioned for their retirement and that, despite having provisioned for their retirement, they deserve some support from the government.

The last few years have been challenging for all, but particularly for self-funded retirees, given the economic turmoil and headwinds around the pandemic. I have a very significant cohort of self-funded retirees in my electorate of Sturt and a lot of them have been apprehensive about their financial circumstances. Obviously, there were dramatic issues in markets with investments that they rely on to provide for their retirement—all of their own savings. This is an excellent way of making sure that they understand how much we value them. They should be entitled to support through the Commonwealth seniors health card around pharmaceutical and medical benefits.

It is worth noting that the Commonwealth seniors health card is also used by state governments and others to provide concessions et cetera to seniors. I know that's not the case in South Australia; I am sure it is in most, if not all, other jurisdictions. Being eligible for the Commonwealth seniors health card not only gives you access to medical and pharmaceutical entitlements through the Commonwealth but also provides for other concessions that can be accessed through state, territory and local governments. So it is very important.

It's disappointing that Labor have broken their promise to introduce this by 1 July. I'm sure that is particularly due to the ridiculous delay in the parliament sitting. I apologise to all of the self-funded retirees who have missed out on a fair access to this card from 1 July, but I'm hopeful that this bill will rapidly move through the House and the Senate, and that we can adopt it and give the entitlement to all. I commend the bill to the House.

David Gillespie (Lyne, National Party) Share this | Link to this | Hansard source

I rise in support of the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill 2022. Increasing access by raising the income threshold for eligibility to receive this card will be of great benefit to many of the seniors living in the beautiful Lyne electorate. I have advocated for many changes how senior Australians can contribute to the community in their retirement, but giving them some of the financial benefits that come with access to this will be a great bonus. In my electorate, I probably have the most age pensioners and seniors of any electorate in the country. I am battled by the member of Hinkler for that honour and the member of Cowper. We have over 30,000 seniors receiving financial assistance. If you're not on a pension but you are a senior and have a fixed income, this card will be a great benefit to you.

Raising the threshold from $57,761 to $90,000 for singles and from $92,416 to $144,000 for couples is really quite a significant change that will benefit up to 44,000 new Australians who will be able to access the card. This is such a good idea that it was actually our policy in the last election, and I'm open to supporting anything that is sensible and reasonable that comes from the other side. We've also called for many other things for pensioners that are not related to this bill, but I support this bill, and I hope that the members of my electorate enjoy its rapid appearance through the due process once it gets up to the Senate.

Amanda Rishworth (Kingston, Australian Labor Party, Minister for Social Services) Share this | Link to this | Hansard source

H (—) (): I appreciate all the comments made by all sides of the chamber on this important bill. It is a timely bill and it is an important bill because it expands the number of Commonwealth seniors card recipients, who will be able to access the card from 20 September 2022. There are some concerns around the start date, and I want to put on the record that this measure requires legislation. That is why this side of the House and I have moved as quickly as we can in the first parliamentary sitting so that we can provide this relief to self-funded retirees as quickly as possible. On that note, and to get this through in a timely manner, I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.