Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Families, Housing, Community Services and Indigenous Affairs, Senator Evans. Can the minister outline to the Senate the recent changes to the pension system that will come into effect today?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Moore for her question and also for her work, along with other senators, on the report A decent quality of life, following the inquiry into the cost of living pressures on older Australians, which was tabled earlier today. I think it will be a useful contribution to the debate on these issues. The committee’s report is a very thoughtful examination of the range of issues facing older Australians. I note that many of the Senate committee’s recommendations are actually addressed by the Rudd Labor government’s election commitments at the last election.

The government very clearly understands that many older Australians face very serious cost-of-living pressures. That is why we took to the election campaign a series of commitments aimed at addressing those pressures, helping them meet their daily bills. We are now implementing those election commitments. We have a very genuine and long-term commitment to supporting Australia’s seniors. We understand the financial pressures they face and recognise their vulnerability to increases in the costs of living. Those living on fixed incomes are most vulnerable to price rises. We know they are struggling now with the inflationary pressures that the previous government left behind. The reality is their grocery bills are going up and they are struggling to meet the requirements of just daily living.

Older Australians deserve adequate financial support to help them cope with those cost-of-living pressures. That is why, with effect from today, the Labor government will be providing increased financial support to Australia’s seniors through a range of changes. These include improvements to the utilities allowance, the seniors concession allowance, the telephone allowance and, of course, the indexation of pensions. From today the utilities allowance will increase from $107.20 a year to $500 a year for co-recipients, a huge increase of almost 80 per cent. The utilities allowance extends to all recipients of the carer payment, disability support pension, widow B pension, wife pension and bereavement allowance. Veterans and their partners receiving the invalidity service pension, the partner service pension or an income support supplement will also receive the allowance for the first time. For senior Australians on income support, this increase will provide much-needed additional assistance with the payment of regular household bills like electricity, gas and water. While the total payment will be $500 with the huge increase in the utilities allowance, it will now be paid in quarterly instalments of $125 to help people meet the bills as they come in. So it will be $500 for the year in four quarterly instalments.

The seniors concession allowance and telephone allowance will also increase from today. The seniors concession allowance will increase from $218 to $500 a year for holders of the Commonwealth seniors health card. That is an increase of over 50 per cent, and that will go to 277,000 persons who are in receipt of that seniors health card. So, again, there is a major increase, from $218 to $500 a year. That will also be paid in quarterly instalments. The telephone allowance will also increase from today for those with a home internet connection. For eligible seniors, the telephone allowance will increase by 50 per cent, from $88 a year to $130 a year for singles and couples combined. It will also be available for around 800,000 veterans, recipients of income support and age pension, Commonwealth seniors health card holders and recipients of carer payment and disability support payment. Of course, also today, around 4.5 million people receiving income support will benefit from a rise in the adult pension and allowance rates. (Time expired)