Pension sweetener meaningless: Plibersek
AAP
March 16, 2015
The Australian
The Abbott government's proposed changes to its pension reforms are "meaningless", Deputy Opposition Leader Tanya Plibersek says.
In an attempt to draw parliamentary support the government is proposing to conduct a review every three years to ensure the adequacy of the pension rate once its growth is slowed by indexing to the consumer price index, instead of to the higher of the CPI or male total average weekly earnings.
The review would be conducted by an independent panel, although there would be no obligation to act on its recommendations.
"It's meaningless ... pensioners know they are being dudded," Ms Plibersek told Sky News on Sunday.
She said the review will simply show that the newer lower indexation rate means pensions are inadequate.
"Then the government may or may not accept that advice," she said.
She said if the government is really concerned about the sustainability of pensions, more should be invested in superannuation, rather than delaying the compulsory super guarantee increase to 12 per cent and scrapping the low income contribution.
She also slammed as a "ridiculous proposition" Treasurer Joe Hockey's idea that young people should be able to access their super for a deposit on a home.
"It's even more ridiculous when you realise that Joe Hockey got rid of the First Home Savers' Accounts," she said.
Ms Plibersek said about 50,000 young Australians had almost half a billion dollars saved in these accounts, which received preferential tax treatment.
"Instead of taking money out of your super, you should be encouraging Australians to save extra," she said.
Independent senator Nick Xenophon said Social Services Minister Scott Morrison's proposal to appoint an independent umpire for the pension with no powers of enforcement was a case of "all bark and no bite".
He said shifting indexing of pensions from average weekly earnings to a lower basis of CPI was such a big deal it should be taken to an election.
"It will affect the spending power of pensioners for many years to come," the South Australian senator told reporters in Adelaide.
"I think the government has really jumped the shark on this one."
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The Pensioners Know They Are Being Dudded (Read 693 times)
