Post by Banjo on Jan 21, 2014 14:19:17 GMT 7
Age pension quarantined from welfare review: Kevin Andrews
THE Abbott government has ruled out changes to the age pension as part of an urgent push to rein in welfare spending, saying its focus will be on the disability support pension and unemployment benefits.
The opposition today warned age pensions were on the government's budget hit list, suggesting the Coalition intended to slash indexation rates for the benefit.
Rein in welfare: Andrews
But Social Services Minister Kevin Andrews said the age pension would be quarantined from a review of welfare rules, to be headed by former Mission Australia head Patrick McClure.
Mr McClure was deputy chairman of Mr Andrews' 2005-06 Welfare to Work Consultative Forum, which recommended a single welfare payment with top-ups for different needs at the time.
Mr Andrews said Mr McClure would examine work disincentives in the welfare system.
"Mr McLure is not looking at the age pension. At this stage we are looking at other income support payments but not the age pension,'' he told ABC radio.
"It's important we do things piece by piece. We can have a look at some of the other payments at the present time and they are consistent with what McLure had looked at in the past, so that's the approach we are taking at this stage.''
But Opposition Leader Bill Shorten, who has vowed to take a constructive approach to possible budget cuts, claimed the government had age pensioners in its sights.
"The Abbott government is proposing to reduce the rate of increase of the age pension,'' he told Sky News.
A 10-year report by the Department of Social Services shows that more than five million Australians received an income support payment in June 2012 - more than one in five Australians - with Disability Support Pension recipients hitting 827,000, while 550,000 people were on Newstart Allowance.
"What we are looking at is how to encourage more Australians who are capable of working to actually work,'' Mr Andrews said.
He said urgent action was required to ensure Australia avoided becoming a welfare state like "nations in Europe''.
Mr Shorten would not be drawn on whether current welfare spending was sustainable.
"What to me is more important is what are the lives people are going to have in the future,'' he said.
Mr Shorten said if the government wanted to save money, it should scrap its "gold-plated' paid-parental leave scheme and look at superannuation rules that favoured high income earners.
The Australian Council of Social Services says a review of the welfare system is welcome provided it improves job seekers' prospects and isn't used as a short-term budget fix.
"This could be a fantastic opportunity to get the most out of the dollars we are spending and to put the whole system on a more sustainable footing," said ACOSS chief executive Cassandra Goldie
"But if it becomes a behind-closed-doors, short-term fix to find budget savings, we will strongly oppose it.''
Dr Goldie suggested changes to superannuation and negative gearing as a potential focus of the review.
www.theaustralian.com.au/national-affairs/age-pension-quarantined-from-welfare-review-kevin-andrews/story-fn59niix-1226806633530
THE Abbott government has ruled out changes to the age pension as part of an urgent push to rein in welfare spending, saying its focus will be on the disability support pension and unemployment benefits.
The opposition today warned age pensions were on the government's budget hit list, suggesting the Coalition intended to slash indexation rates for the benefit.
Rein in welfare: Andrews
But Social Services Minister Kevin Andrews said the age pension would be quarantined from a review of welfare rules, to be headed by former Mission Australia head Patrick McClure.
Mr McClure was deputy chairman of Mr Andrews' 2005-06 Welfare to Work Consultative Forum, which recommended a single welfare payment with top-ups for different needs at the time.
Mr Andrews said Mr McClure would examine work disincentives in the welfare system.
"Mr McLure is not looking at the age pension. At this stage we are looking at other income support payments but not the age pension,'' he told ABC radio.
"It's important we do things piece by piece. We can have a look at some of the other payments at the present time and they are consistent with what McLure had looked at in the past, so that's the approach we are taking at this stage.''
But Opposition Leader Bill Shorten, who has vowed to take a constructive approach to possible budget cuts, claimed the government had age pensioners in its sights.
"The Abbott government is proposing to reduce the rate of increase of the age pension,'' he told Sky News.
A 10-year report by the Department of Social Services shows that more than five million Australians received an income support payment in June 2012 - more than one in five Australians - with Disability Support Pension recipients hitting 827,000, while 550,000 people were on Newstart Allowance.
"What we are looking at is how to encourage more Australians who are capable of working to actually work,'' Mr Andrews said.
He said urgent action was required to ensure Australia avoided becoming a welfare state like "nations in Europe''.
Mr Shorten would not be drawn on whether current welfare spending was sustainable.
"What to me is more important is what are the lives people are going to have in the future,'' he said.
Mr Shorten said if the government wanted to save money, it should scrap its "gold-plated' paid-parental leave scheme and look at superannuation rules that favoured high income earners.
The Australian Council of Social Services says a review of the welfare system is welcome provided it improves job seekers' prospects and isn't used as a short-term budget fix.
"This could be a fantastic opportunity to get the most out of the dollars we are spending and to put the whole system on a more sustainable footing," said ACOSS chief executive Cassandra Goldie
"But if it becomes a behind-closed-doors, short-term fix to find budget savings, we will strongly oppose it.''
Dr Goldie suggested changes to superannuation and negative gearing as a potential focus of the review.
www.theaustralian.com.au/national-affairs/age-pension-quarantined-from-welfare-review-kevin-andrews/story-fn59niix-1226806633530