Senate debates

Wednesday, 12 March 2008

Social Security and Veterans’ Affairs Legislation Amendment (Enhanced Allowances) Bill 2008

Second Reading

9:53 am

Photo of Helen PolleyHelen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to speak on the Social Security and Veterans’ Affairs Legislation Amendment (Enhanced Allowances) Bill 2008. Older Australians are the lifeblood of this nation. Through their hard work, they have built our national prosperity. The Rudd Labor government will ensure that older Australians enjoy that prosperity, which they have helped to create for all of us. The fastest growing group of the Australian population is our older Australians. It is estimated that the number of Australians aged 70 or over will double over the next 20 years. It is for this reason that we must look carefully at the demographics to ensure that they are getting a fair deal. The Labor government, under Kevin Rudd, understands the cost of living pressures faced by older Australians and those on fixed incomes, like disability pensioners and carers. This government also recognises that, although self-funded retirees may be asset rich, many are cash poor. Spiralling petrol prices, food and grocery prices and housing costs mean older Australians, people with disabilities and carers are in real need of increased financial support. This bill will benefit over 1.7 million aged care support recipients, 250,000 Commonwealth seniors health card holders, 700,000 disability support pensioners and 120,000 carer payment recipients.

Firstly, this bill increases the annual rate of the utilities allowance from $107.20 to $500 per household and provides for the allowance to be paid in $125 quarterly instalments, rather than biannually. For the first time, this bill extends qualification for the utilities allowance to people who are under pension age and receiving a disability support pension, carer payment, wife pension, widow B pension or bereavement allowance and to people who are under qualifying age and receiving a service pension or an income support payment. I feel this is an important benefit, and I am sure it will ease the cost of living for seniors in my state of Tasmania. The bill also increases the annual rate of seniors concession allowances from $218 to $500 for eligible self-funded retirees and provides that the seniors concession allowance will be paid quarterly, with the same timing as the utilities allowance. Utilities and seniors concession allowance changes take effect from 20 March 2008. They will be paid every three months in $125 instalments. This means that payment will be made closer to when household bills are due, making household budgeting a little easier.

Lastly, the bill increases the rate of telephone allowance from $88 to $132 for certain income support recipients who have an internet connection at home. The increase will be available to pension age income support recipients, disability support pension and carer payment recipients and self funded retirees who hold a Commonwealth seniors health card. The bill also increases the rate of telephone allowance for all the people who have an internet connection at home and are eligible for a telephone allowance under the Military Rehabilitation and Compensation Act or the Veterans’ Entitlements Act. The Rudd Labor government understands that the internet is a critical means for families to stay in touch with their loved ones. Some Australians on income support pensions and payment can be at risk of becoming isolated from the community. That is why we are helping them stay in touch with their friends, children and grandchildren around the country and around the world via the internet. Affordable home access to the internet has the potential to connect them with the new world of communication and information.

The bill delivers on a key election commitment to help older Australians, people with a disability and carers to help them meet the costs of everyday living. The Rudd Labor government has committed over $4.1 billion to making ends meet. This shows how committed we are to helping our older Australians. The Rudd Labor government is dedicated to ensuring Australians are getting a fair go. For this reason, the government is investigating whether Australians are getting a fair deal at the supermarket. While the Howard-Costello government’s failure to act on 20 Reserve Bank inflation warnings has impacted on prices across Australia, the new Rudd Labor government wants to know if more can be done to ensure we have access to a competitive market for basic food items. Prime Minister Rudd has instructed the ACCC to take a broad approach to its inquiry and ensure that all aspects of the chain are included, from the farm gate to the checkout counter.

There are many in the community who will be relieved with our commitment to help them to make ends meet. I know that certainly in my home state of Tasmania these measures will be of great benefit to those who are eligible. These measures are just another example of how the Rudd Labor government has listened to the community and delivered a positive outcome. The former Howard government had the motto: ‘Whatever it takes, spend, spend, spend. Don’t worry about the economy; don’t worry about the impact on inflation—just keep spending and get yourself elected.’ The Rudd Labor government are showing that we have the good practice of listening and taking economic responsibility for any decisions that we make. I am pleased that the government have introduced these measures at this time, and I commend them to the Senate.

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