Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

If there are no other contributions from colleagues then I will close the debate. As amended by the House of Representatives, this bill includes the important budget measure of improving the fairness and sustainability of the pension system.

From 1 January 2017 the bill will rebalance the assets test to make it fairer and better targeted and to help ensure the pension system is sustainable into the future. The changes will increase the assets-test-free area to provide additional assistance to part-rate pensioners with moderate asset holdings, provide an additional increase in the free areas for non-home owners and increase the assets-test taper or withdrawal rate, the assets above the new free areas, from $1.50 to $3 per fortnight, for each extra $1,000 in assessable assets.

Importantly, pensioners who lose pension entitlements on 1 January 2017, as a result of the changes, will be automatically issued with a Commonwealth seniors health card, or the health-care card for those under pension age, without having to meet the usual income-test requirements. Additionally, any veterans who would otherwise lose their veterans' gold card, as a result of changes, will retain their card. The 2015 budget measure removed from the bill in the House of Representatives will be reintroduced, in a separate bill, in due course.

I table a copy of a letter from Minister Morrison to Senator Di Natale and a copy of a press release, of 16 June, headed 'Tax white paper consultation process to be extended'. I understand the whips across parties have been shown copies of these documents. With those words, I commend the bill to the Senate.