Jan McLucas (Queensland, Australian Labor Party, Minister for Human Services) Share this | Hansard source

I thank Senator Polley for her question. Our Labor government is continuing its strong record of supporting older Australians with a number of initiatives in this year's budget. This includes $112.4 million for a pilot program to support pensioners who are over age-pension age who want to downsize their home without it immediately affecting their pension. From 1 July 2014, eligible pensioners will be able to downsize their home and invest a minimum of 80 per cent of the excess proceeds, to a maximum of $200,000, in a special account. The funds invested in the special account and any returns would not be counted under the pension means test for 10 years or until a withdrawal is made. It is expected that around 30,000 pensioners could benefit from the exemption through the trial period between 2014 and 2017. This initiative will support older Australians to find the right housing option for them. It will ensure that there are not unnecessary pressures on the housing market and it will be fairer for older Australians, giving them greater choice and control over their retirement.

Initiatives like this build on our government's record of improving the lives of Australians. We have delivered the biggest ever dollar increase to the pension, worth more than $5,000 a year to a single maximum rate pensioner. We also introduced the seniors Work Bonus, worth up to $6,500 a year, to make sure age pensioners can keep more of their income while they are working. We have delivered another pension increase as part of the household assistance package, worth $350 a year for single pensioners and more than $530 a year for pensioner couples. After almost 12 long years of neglect under those opposite, pensioners know they can trust Labor— (Time expired)