PENSIONS – GOVERNMENT POLICY – AUSTRALIA

Pensioners face delay in deeming rate relief until late September

roymorgansocial Leave a comment

Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 9-Jul-19

The federal government has not adjusted the pension ‘deeming’ rate since March 2015, despite a sharp fall in in interest rates since then. The expenditure review committee will shortly consider reducing the deeming rate, although no action may be possible until the government undertakes its bi-annual review of pension payments on 20 September. Ian Henschke of National Seniors Australia believes that the government is able to review the deeming rate at any time, although Council on the Ageing CEO Ian Yates says the Department of Human Services’ outdated computer systems means that an immediate reduction in the deeming rate may not be possible.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, COUNCIL ON THE AGEING, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Labor’s deeming rate reduction predicted to cost $1b

roymorgansocial Leave a comment

Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 8-Jul-19

Treasurer Josh Frydenberg says the federal government will change the deeming rate for pensioners by the end of 2019, and that over 25 per cent of pension recipients will be better off as a result. Shadow social services minister Linda Burney says a change in the deeming rate is urgently needed, and that cutting it by 1.25 per cent would see pensioners $3,875 a year better off. The deeming rate has not been changed since 2015, while cutting it by 1.25 per cent would reduce the Budget bottom line of at least $1 billion.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

ScoMo wrong to lock in retirement age: experts

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 6-Sep-18

Prime Minister Scott Morrison has announced the federal government will scrap plans to incrementally lift the age at which people qualify for the old age pension to 70 by 2035. His decision was applauded by Ian Yates, the CEO of seniors advocacy group COTA, who said the government should focus on lifting workplace participation rates for people over 55. However, Grattan Institute fellow Brendan Coates claimed the government’s decision would increase the tax burden on a declining working-age population, while Chris Richardson from Deloitte Access Economics described the decision as being "good politics but poor policy".

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COTA AUSTRALIA LIMITED, GRATTAN INSTITUTE, DELOITTE ACCESS ECONOMICS PTY LTD

Pension cuts biting marginal Lib seats

roymorgansocial Leave a comment

Original article by Rachel Baxendale
The Australian – Page: 4 : 6-Jan-17

The Federal Government’s changes to the Age Pension assets test may prompt angry pensioners to vent their anger at seats held by the Liberal Party of Australia. Seats that may be vulnerable include Kevin Andrews’s seat of Menzies (Victoria), Jason Falinski’s seat of Mackellar (NSW), Scott Morrison’s seat of Cook (NSW), Paul Fletcher’s seat of Bradfield (NSW), Tim Wilson’s seat of Goldstein (Victoria), and Greg Hunt’s seat of Flinders (Victoria).

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY