Abbott to stop pension indexation?
Wednesday, 12 June 2013
“Pensioners have expressed horror at suggestions today that an Abbott-led government may cease regular indexation of the pension, as per a recommendation made by the Howard Government’s 1996 National Audit of Commission,” said Senior Policy Advisor, Charmaine Crowe.
“Regular indexation of the pension ensures that it maintains pace with the cost of living, which is critical for pensioners, particularly those with no other source of income.”
“The vast majority of pensioners have no other income, so if the pension cannot cover living costs, they have nothing to fall back on.”
“Around 80 per cent of people aged over 65 receive the Age Pension, in part because of the relaxation of the means test under Howard. This made many retirees who have significantly more income or assets than a full-rate Age Pensioner, eligible for the pension.”
“Ceasing pension indexation would affect not only Age Pensioners, but over 1,000,000 carers and people with disability receiving the Carer’s Payment and the Disability Support Pension.”
“If the current indexation of the pension was removed, the pension risks losing its value as the Newstart Allowance and Parenting Payments have done, subjecting their recipients to living in poverty.”
“The Leader of the Opposition Tony Abbott must come out and categorically reject any proposal to cease the current pension-indexation regime."