Senate debates

Wednesday, 20 June 2012

Questions on Notice

Housing (Question No. 1829)

Photo of Scott LudlamScott Ludlam (WA, Australian Greens) Share this | | Hansard source

asked the Minister representing the Minister for Housing, upon notice, on 8 May 2012:

With reference to the increase to the Commonwealth Aged and Disability Support Pension, of approximately $10 and $32 per week for couples and singles, in the 2009-10 Federal Budget and with particular regard to recipients of the pension who are state housing tenants:

(1) Is the Treasurer aware that tenants in Victorian public housing received notice in January 2012 (effective 12 February 2012) from the Victorian Government that their pension increase would be included in rent calculations and classed as assessable income for the calculation of public housing rents.

(2) Can the Treasurer confirm the impact this will have on a single aged pensioner in terms of the net increase in rent paid per week.

(3) What is the estimated increase in revenue to the Victorian State Government as a result of this measure.

(4) Is the Treasurer aware that the Western Australian Government recently indicated publicly that it was planning on a similar measure, before withdrawing the announcement due to public outcry.

(5) Have any other states taken similar action.

(6) Does the Treasurer support such action by the states.

(7) Is the Australian Government considering any action to prevent states from including current or future increases to Commonwealth benefits being treated as income by the states, such as paying pensioners rent assistance or introducing legislation.

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

The Minister for Housing and the Minister for Homelessness have provided the following answer to the honourable senator's question:

(1) The Minister is aware of the Victorian State Government's decision to cease quarantining the Federal Government's September 2009 pension increase, effective as at 12 February 2012.

(2) Pensioners will continue to pay no more than 25 per cent of their assessable income in rent calculations. The net increase for a pensioner paying 25 per cent of their base pension in rent is $7.50 per week.

(3) The Victorian State Government would be best placed to respond to this question.

(4) Western Australia's quarantine arrangements for the September 2009 pension increase ceased on 20 March 2011. You may be referring to the Household Assistance Payment. I am aware that Western Australia has announced that all Household Assistance Payments will be exempt from assessable income for the purposes of rent setting.

(5) Six jurisdictions have ceased quarantine arrangements for the September 2009 pension increase, including Western Australia, South Australia, Tasmania, New South Wales, Victoria and the Australian Capital Territory. Queensland and the Northern Territory are the only jurisdictions to continue to quarantine the pension increase.

(6) No, the Gillard Government believes that Labor's September 2009 pension increase should be passed on to pensioners in public housing in full.

(7) When it announced its pension reform package in the 2009-10 Budget, the Commonwealth Government requested in writing that all States and Territories permanently exempt the 2009 pension increase from public housing rent setting.

This was followed by several formal and informal representations re-iterating the Commonwealth Government's view that pensioners should receive the full benefit of Labor's pension increase in September 2009.

This remains the Commonwealth Government's position in relation to the September 2009 pension increases.