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Budget walk through
Now that many of us have had the chance to digest all that was announced in the 2009-10 Budget, we have one simple snapshot document explaining the changes for pensioners, self-funded retirees, workers and other special interest groups.
Click here to download our Handy PDF!
Disability employment network
Finding job that suits in terms of location, hours and salary can be difficult at the best of times but is so much more difficult for those with a disability.
The Disability Employment Network (DEN) was created to provide specialist assistance to job seekers with disabilities who require on going support to find and maintain employment.
More than 50,000 people with a disability find and keep work through the DEN each year. A DEN advisor can assist job seekers to find and keep employment in the open employment market or to become self-employed. Assistance can be in the form of training, job placement or on-the-job support.
You can be referred to the DEN if:
· have a permanent (or likely to be permanent) disability and
· have a reduced capacity for communication, learning or mobility and
· require support for more than six months after placement in employment
Find a DEN advisor in your area.
Chasing your $900
Still not received your $900 tax bonus payment and wondering how to chase it up? If you’ve submitted your 2007/08 tax return, use the ATO’s online calculator to confirm your eligibility.
Government funded podiatry services
Keeping your feet healthy is vital to maintaining an active and independent lifestyle but can be expensive as About Seniors subscriber, Helen, is more than aware.
Q. Helen
Can you tell me if there is any subsidy available for podiatry from either state or federal level?
I need regular treatments every eight weeks and am finding the cost ($58) a strain on the budget.
A. There is no Federal Government funded podiatry service. Podiatry services are available at state level if you are eligible under the Home and Community Care Program.
It is worth noting that individual podiatrists may offer discounts to those who hold a pension card or seniors card, so it’s worth asking around in your area.
The big (budget) picture
Unless you have been living under a rock, you will understand that Australia, like most developed nations, is suffering from the effects of a global economic downturn, commonly referred to as a crisis (GFC).
If the definition of happiness, as expressed by Mr Micawber, imprisoned for debt in the Charles Dickins novel, David Copperfield, really is:
“Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
then last night’s budget means we are all in for a rough ride.
But as Treasurer, Wayne Swan, noted, the effects of the GFC mean the government is faced with one of two broad choices; slash and burn and create a deeper recession or borrow to “buy” our way out of the economic downturn. Clearly, the Rudd Government has chosen the latter course.
What does it all mean?
Net Revenue will be $290.6 billion. Net Expenditure will be $338.2 billion. The shortfall – around $48 billion, with our debt level forecast to be $188 billion by 2002-3 tax year. If these numbers make your eyeballs rotate, it’s hardly surprising; they are almost too huge to comprehend.
But the predicted return to surplus in 2015-6 is based on Treasury officials’ forecasts which use the rate of recovery after previous recessions in early 1980’s and 1990’s as a base. Many commentators find this prediction too optimistic; just as many say it is conservative.
So far Australia appears to be weathering the economic storms better than other western economies. This is no doubt due to our well-regulated banking system and recent resource sector boom. The Rudd Government, whilst noting unemployment will probably peak at 8.5% in 12-18 months, is investing in jobs, infrastructure, health and education to encourage a steady return to prosperity sooner rather than later.
The Opposition Leader, Malcolm Turnbull, has right of reply on Thursday night – we will share Mr Turnbull’s response with you in our Friday Bulletin.
Self funded retirees
Self funded retirees, if holders of single Commonwealth Seniors Health Cards or Veterans Gold Cards, will be affected by the simplification of the payment of allowances. The existing seniors’ concession allowance and telephone allowance will be combined into a new seniors supplement paying an extra $129 per annum. The amount self funded retirees are forced to withdraw from account-based pensions has been halved.
Golden gurus
Admittedly, world issues may have pushed the proposals from Rudd’s 2020 summit onto the back burner but finally, $400,000 has been committed to the Golden Gurus program.
The aim of the Golden Gurus’ program is to provide more opportunities for skilled Australian’s over 55 years old, by getting them involved in mentoring programs, particularly for small business. With around half of Australia’s current workforce retired by 2020 and many more being semi-retired or working less than full time, there is a danger that these skills will be lost from the workforce, business and the community.
The initial $400,000 will encourage existing mentoring programs and facilitate the move of such schemes from the voluntary to the business sector. A key component of the program will be its connection to the Australian Government’s New Enterprise Incentive Scheme (NEIS).
For more information, visit DEEWR.gov.au.
Increase your super
The super co-contribution is an Australian Government initiative to help low to middle income earners save for their retirement introduced in July 2003.
If you are eligible and make personal super contributions to a complying super fund or retirement savings account (RSA), the Government will match your personal super contribution with a co-contribution up to certain limits.
The following conditions apply:
From 1 July 2008, you will be eligible for the co-contribution if:
· you make a personal super contribution by 30 June each year into a complying super fund or retirement savings account
· your total income is less than $60,342 (this is indexed annually to reflect changes in average wages)
· 10% or more of your total income is from eligible employment, running a business or a combination of both
· you are less than 71 years old at the end of the year of income
· you do not hold an eligible temporary resident visa at any time during the year
· lodge your income tax return.
Your super fund needs your Tax File Number (TFN) before it can accept your personal contribution or a co-contribution from the tax office.
More information is on the ATO website.
Cash payments pass high courts
Bryan Pape, a barrister and states-rights champion, took on the Commonwealth and lost today.
As the result of this, cash payments of up to $900 will begin flowing to 8.7 million taxpayers from Monday 6 April 2009.
Tax relief for Self-funded retirees
With the Government’s announcement that they will reduce the GDP adjustment from 9% to 2% for the 2009-10 income year, self-funded retirees who pay their tax quartley, may benefit from improved cash flow.
The move, announced by Treasurer, Wayne Swan, is a step to better aligning the tax treatment of self-funded retirees with changing economic conditions.
To find out more, visit the Treasurer’s website.
Dental health scheme
It’s a little known fact that those suffering from a chronic illness and having complex care needs may be eligible for dental care paid for by Medicare.
If your oral health is impacting on, or likely to affect, your general health and you suffer from a chronic medical conditions which may include, but are not limited to:
· asthma
· cancer
· cardiovascular illness
· diabetes
· arthritis
· mental illness
· musculoskeletal conditions
· stroke.
Complex care needs means that you are receiving ongoing care from a multidisciplinary team including your GP and at least two other health or care providers.
You’ll be able to claim up to $4250 in Medicare benefits for eligible dental services over two calendar years. Private ancillary health cover can’t be used to top up Medicare benefits received for dental work.
For more information, visit the Department of Health and Ageing.
Tax review - have your say
With the outcome of Dr Harmer’s report into the Pension Review eagerly awaited, you can have your say in the bigger picture, with public consultations being held into Australia’s Future Tax System.
Following the release in December 2008 of the Consultation Paper for Australia’s Future Tax System, the review panel are holding a series of public meetings from Monday 16 March 2008. This is your chance to have your say in which parts of the tax system work and which parts need drastic changes. Community participation is a key element of the review and the free meetings are open to all but you do need to register in advance.
Details of meetings are as follows:
For more information or to register for an upcoming meeting, visit Australia’s Future Tax System.
If you are unable to attend a meeting, or have missed the one planned for your locale, you can still have your say by completing the questionnaire on the Australia’s Future Tax System website.
Read more details of the Harmer Pension Review.
Carer respite
Caring for someone can be a rewarding experience but now and again, carers need a break. This is not something to feel bad about and you should seek respite when you feel it is getting too much for you.
Communities and society could not function without the work carried out by carers and often their services are undervalued. Caring for someone whether full or part-time can take its toll on your physical and mental health and every now and again, carers need a break.
The National Respite for Carers Program (NRCP) is aimed at providing support and respite for those looking after loved ones at home. There are more thank 600 respite centres that provide information, support and the chance to have a break when you feel you need it most.
The NRCP also offer carer publication to give much needed information to those caring for family and friends, often having little or no training.
For more information, contact your nearest Commonwealth Carer Respite Centre on 1800 052 222 or visit Commonwealth Carer and Respite Centres. For emergency respite care outside office hours, freecall 1800 059 059
Government Tax Package
Following on from Tuesday’s Enewsletter, it appears we may have misled readers about AboutSeniors’ subscriber Jim’s eligibility for the Government’s stimulus payment.
As previously noted, AboutSeniors website is neither qualified nor licensed to offer financial advice. What we DO do however, is handle questions on money matters, by referring them government departments such as Centrelink and ATO. Where appropriate, those who wish to check their eligibility for the stimulus payment can check their own individual situation by checking here.
Grandparents support
It used to be that grandparents were the mainstays in families, helping to raise their grandchildren with much needed advice and support. But when families break-up, this link is often broken.
The Federal Government has announced changes to help grandparents maintain relationships with their grandchildren following the separation of the children’s parents. Attorney-General, Robert McClelland, has advised courts and family relationship centres that he wants more assistance for grandparents affected by family separation.
Proposed changes would enable grandparents to become involved in court proceedings, get advice on family law and access to family counseling sessions. This would also give the courts a further option for residence and help provide stability in a child’s life at a difficult time,
Whilst campaigners state the moves are not enough and action, not more studies is needed, any move in the right direction is surely a good one. For more details on the changes and how you can get help with a family dispute, visit the Office of the Attorney-General.
Who gets what
No one can accuse the Federal Government of doing nothing to stave-off a recession, whether it will be successful or not remains to be seen. In the recently approved stimulus package, who will be the winners?
This time round, low-to-middle income earners, single-income families, drought-affected farmers and students will benefit for cash handouts, leaving needy pensioners without. To be eligible for the $900 handouts, you must:
· Earn less than $80,000 and have completed a 2007-08 tax return (reduced payments are available for those earning between $80,000 and $100,000).
· Receive Family Tax Benefit Part-B (FTB-B)
· Have school age children and receive Family Tax Benefit Part-A (FTB-A) ($900 for each eligible child)
· Receive Youth Allowance (student and apprentices); Austudy; ABSTUDY and other student and related payments (Sickness Allowance and Special Benefit (under pension age) or the Education Entry Payment.
· Farmers experiencing hardship who are receipt of Exceptional Circumstances Relief Payment for Farmers, Interim Income Support for Farmers, Exceptional Circumstances Relief Payment for Small Business, Interim Income Support for Small Business, Transitional Income Support or Farm Help Income Support
In certain circumstances, you may qualify for more than one bonus. For example, if you have two school-age children, receive FTB-B and earn under $80,000 and have completed your tax return, you will receive four times $900.
Self-funded retirees who have completed a tax return and earn under $80,000 per annum should also qualify for the $900 bonus.
For more detailed information on who will get what, how to claim and when the bonus will be paid, visit the Australian Federal Government
For more details on eligibility for the low-to-middle income earners tax bonus, visit the Australian Tax Office.
Tax refund email scam
The tax man is trying to save you money by warning of an email scam offering you a tax refund in return for your credit card details.
The email uses the ATO logo and has a subject along the lines of “Notification – please read” or “Australian Tax office – please read this”. You are then asked to click a link and enter your credit card details to claim your refund.
The ATO never sends emails asking for personal information or credit card details and emails such as this should be deleted immediately. As an extra precaution, recipients are advised to type web addresses into their internet browser rather than clicking on an embedded link.
If you have given your credit card details in an email such as this, you should contact your card provider as soon as possible.
For more information, visit the ATO.
Banking review
Is your bank giving you the service you deserve? Do you know what your entitlements are as a bank customer? The Code of Banking Practice has recently undergone review but how will these recommendations affect you?
Recommendations made by independent reviewer, Jan McClellan, will be put by the Australian Bankers’ Association (ABA) to its members. The purpose of the review is to determine how well the Code has been working since the last review in May 2004, taking into consideration the changes to banking practices.
The Code is the basis for the relationship between banks and their customers, and the standards required are not met by all financial institutions. In her review, Jan McClellan calls for a more responsible approach to lending and full disclosure of exception fees, so people understand what the will be charged if they go overdrawn. To view the full report, visit the Review of Code of Banking Practice website
You can view the Code of Banking Practice by visiting the ABA website
Seniors’ rights
Seniors Rights Victoria, ia an information, advocacy, legal and education and training service which has been established to address abuse of older people in the community.Elder abuse is any act causing harm to an older person inflicted by someone they know and trust. It can be physical, social, financial, psychological or sexual and includes mistreatment and or neglect. Seniors Rights Victoria is a new free service established to prevent elder abuse and safeguard the rights, dignity and independence of older Victorians. It provides a range of services including a telephone helpline – 1300 368 821 – referrals, legal advice, advocacy, and community and professional education. It also has an office located in Seniors Information Victoria, 247 Flinders Lane, Melbourne. A website is also under development.
For non-Victorian residents, the following organisations:
Aged Rights Advocacy Service: SA
Aged Rights Advocacy Service: NSW
Aged Rights Advocacy Service: ACT
Aged Rights Advocacy Service: QLD
Aged Rights Advocacy Service: NT
Aged Rights Advocacy Service: WA
Aged Rights Advocacy Service: TAS
Pension changes
It seems to take a community cabinet meeting to force further attention to the pitiful rate of the Age Pension. This week in Mackay saw an admission by Treasurer Wayne Swan the pension is indeed inadequate – and changes may be afoot.
Asked again about the lack of response to the low pension in the recent budget, Mr Swan said the review of taxation and welfare to be chaired by Ken Henry would seek economically sustainable ways to solve the problem But don’t hold your breath. The first stage of recommendations from the Henry review will not be forwarded to the Government until February 2009. The good news for those on the pension is with the changes in the Senate from July 1, the balance of power will be in the hands of the Greens, Family First senator, Steve Fielding, and the independent Nick Xenophon. Those who wish to write directly to these senators about the Age Pension can click the links below and email politicians who actually can make a difference.
Stay safe online
Submitting your tax return online may be quick and simple but is it safe to send so much of your personal data into cyberspace? National E-Security Awareness Week will help you decide just what is safe and what is not.
National E-security Awareness Week, from 5-12 June 2009, is aimed at highlighting best practice for all the tasks we do online, whether it’s banking, chatting, playing games, shopping or filing your tax return. Stay Smart Online is a website launched by the Australian Government and gives top tips for protecting your computer from hackers, banking and shopping online and keeping kids safe when using the net.
Some of the tips on offer are:
· Change your passwords at least every month
· Watch out for and delete hoax emails or phishing that seem to be from your bank
· Don’t buy from websites that you feel unsure about
· Ensure that the anti-virus, anti-spyware and firewall protection on your computer are all turned on and are up-to-date
Seminars are being held throughout the country that will advise how to get the best from your computer’s security measures and simple but effective ways to stay safe online.
Check out Stay Smart Online for details of events and top security tips.
Budget 2008/09 comments
The prospect of more than one million Australian pensioners getting help to meet soaring food, housing and transport costs has been buried by the 2008 budget, Australian Greens leader Bob Brown said today.
“The budget leaves these grandest of Australia’s working families struggling on the poverty line,” Senator Brown said.
“The Rudd government has spent $31 billion on inflationary tax cuts, $41 billion on ‘future funds’ for infrastructure and $22 billion on defence but has given zero to lift the meagre $273 per week pension. The budget should have, minimum, lifted single pensions from 59% to two thirds of pensions for couples. It should have delivered pensioners at least a $30 per week across-the-board income lift.”
Senator Brown said changes to indexation and utilities allowances did not address the inadequacy of the weekly pension rate to ensure a decent standard of living.
“Treasurer Swan has gifted the big end of town with tax cuts boosting income every week, but left pensioners struggling with meagre weekly incomes which are a disgrace,” Senator Brown said.
Bob Brown – Greens
“Single age pensioners, hoping for a reprieve from spiraling living costs in the Rudd Government’s first budget, will be bitterly disappointed this morning...”
“Despite intense community pressure and a Senate Report which, earlier this year, acknowledged the inadequacy of the single age pension, the base pension rate has not been increased.”
Michael O’Neill - National Seniors
While Wayne Swan’s Budget has some commendable initiatives for Australia’s future it is more like ‘back to the future’ as far as his vision for older Australians is concerned. We have had the expected confirmation about payments for carers, and that is welcome, but there is still no substantial effort at addressing the growing gap between age pensions and the cost of living.
Dr Geoffrey Bird, Council on the Ageing
Budget 2008/9 Seniors summary
Conditional Adjustment Payments
An extra $2 billion will be provided over the next four years through the conditional Adjustment Payment (CAP) for providers of care for elderly Australians. A review of the ongoing need for and level of the CAP will be undertaken by the Department of Health and Ageing.
Transition care places
An additional $293 million to provide for an extra 2000 transition care places for older people no longer needing hospital care, to help them recover and regain independence before deciding about longer term care needs.
Lump sum payments
As promised pre-election, one-off lump sum payments of $500 will be made to eligible senior Australians by June 30, 2008.
Utilities Allowance
Age Pension recipients will receive the higher utilities allowance of $500.
Self-funded retirees
Those self-funded retirees with Commonwealth Seniors Health Cards are now entitled to a higher Seniors Concession Allowance of $500.
Pension levels
Indexation of the Age Pension will be “enhanced”. The base rate will not be increased, despite acknowledgement by the Treasurer and Prime Minister that pensioners are “doing it tough”. Stay tuned for the much promised review of pension payments…The rate of the Age Pension will be indexed to either the CPI, the average male weekly earnings, or the living cost index for pension households - dependent upon which is the highest.
Carers lump sum bonuses
Those who care for people with disabilities and the frail aged, will receive lump sum bonuses of $1,000 to (recipients of Carer Payment) and $600 to (recipients of Carer Allowance) at a cost of $427 million. Recipients of Carer Payment and Carer Allowance will be eligible for both payments.
Eligibility for the Utilities Allowance to Carer Payment and Disability Support Pension recipients has been increased, as has the Telephone Allowance from $88 to $132 per year for those with an Internet connection.
To read the full detail on the Budget 2008/9 visit the Federal Government website now
To view the comments of Bob Browns - Greens, click here
Pension levels
The budget offers an excellent opportunity to revisit the question of age pension adequacy – and what the people who can actually do something about it, think?
We have asked each and every Member of Parliament and Senator the following questions on Age Pension adequacy:
- Do you think the Age Pension is adequate?
- If not, what can be done?
- Do you have any other comments for our readers?
and advised them that it was our intention to create an online register of their responses. So far, we’ve had two responses, which have been posted below for you to read:
Kay Hull MP, Federal Member for Riverina and member of The National Party
“I believe the age pension is not adequate to keep up with the rising costs of living especially for single pensioners.
These pensioners have the same cost or rent, electricity, gas, rates, insurance, registration, fuel and other associated costs of having a motor vehicle, medical expenses and travel to see specialist medical professionals if they live in a regional or rural area, phone charges and grocery items as anyone else, however their pension rate is based on 25 per cent of average male earnings.
I would encourage those receiving the age pension and who are finding living costs becoming increasingly difficult to contact the Federal Government and urge a review of the age pension benefits and funding figures as the amount currently received is not enough to cover basic essential expenses.
I believe this is an area that the Federal Government needs to address as a matter of urgency, especially with the cost of living continuing to rise.”
Margaret May, Member of Parliament for McPherson, Queensland. Member of the Liberal Party.
“I would encourage those receiving the age pension and who are finding living costs becoming increasingly difficult to contact the Federal Government and urge a review of the age pension benefits and funding figures as the amount currently received is not enough to cover basic essential expenses.”
An overhaul of age pensions, and, in particular, the single aged pension is urgently called for. There’s no doubt that we are all feeling the impact of cost of living pressures but pensioners have felt the impact of these increases more than others.
For example from June 2005 to June 2006, living costs for age pensioner households rose 5.0% whereas CPI rose by 4% for the same period. What this means for a considerable number of older Australians, many of whom have little or no discretionary income, is that they’re under increasing financial stress.”
I unequivocally support the first recommendation of the Senate Community Affairs Committee inquiry into the cost of living pressures on older Australians. The Committee recommends that the Government review the suitability of the base pension levels through economic analyses of amounts required to achieve at least a modest standard of living for retired Australians. The Committee placed particular emphasis on single older people receiving the age pension compared to couples and this emphasis was well-directed as there’s no doubt that single pensions are under more pressure than other groups.
I shall actively lobby the Government in relation to lifting pension rates as the present rate clearly is not sufficient to meet older Australians’ needs.”
You can check from whom we have received responses by checking our online register, and if you wish to view a response, , telling us which response you require.
Bonus payment woes
It seems that a one-off payment is by far the preferred choice for the Bonus Payment given to Careers and Pensioners. Many would like to see this payment formalised rather than given in the ad-hoc manner it is currently, and have no wish to receive the money split over the year in their regular fortnightly payments. The main use for such a payment appears to be the purchase of large items, in most cases necessities such as car registration and maintenance or replacing household goods that people simply can’t live without. Below are some of the comments we’ve received.
Certainly I would prefer to have the payment as a oncer! Help to pay in full for household repairs, replacing broken household machines, servicing the car etc. If paid in bits and pieces it just disappears into the normal weekly spend.
Pamela M, Qld
It would be better for most recipients to have the one-off bonus. If the Rudd government intends changing it possibly it would be better to split it and have it twice-yearly.
There is an anomaly with this bonus.
If you are on carer payment you presently receive $1000.
If you are on carer allowance you presently receive $600.
Of course if you are on both you presently receive $1600.
I was on both looking after my husband with MS. But, when I turned 63.1/3 years I was automatically transferred from carer payment to age pension just as these bonuses first came into being.
It is really not quite fair that you are considered to be a “carer” up to “age pension age” but once you reach it are no longer a carer.
I therefore receive $600 carer bonus for being eligible for the carer allowance. Nothing I do to assist my husband has changed because I reached age pension age but the government manages to differentiate between carer payment, carer allowance and age pension.
In my mind, any carer regardless of being on carer payment or carer allowance or transferred to age pension should receive the same bonuses.
Maybe you could ask the appropriate Minister why this happens?
Anne S, NSW
We think the one-off payment would be best paid as a one-off payment. If it is paid with the fortnightly payment the money will be spent and not saved for when a large amount is needed. With a one-off payment it is easier to budget.
Anne S
Unless they increase the one off payment, it wouldn’t amount to much paid over a year with the pension. I would prefer the one off payment.
Ray M
Heaven forbid a Senior or Carer would spend the money on a luxury item. Heavens to Mergatroid! Seniors and Carers can be trusted with a lump sum to help what is just “survival” surely? Bits and pieces are not the same as a lump sum to buy something necessary but beyond buying on just the pension i.e. a fridge. or something on that line.
Please Mr. Kevin Rudd understand the difficulties people have living below the poverty line.
Phyl.
Does not matter how it is payed as long as it is payed. The government has enough surplus monies.
So come-on send some to the pensioners and carers of Australia.
I have budgeted this payment to pay for the registration of my car...so will be “in trouble” if the amount is not given at the same time as last.
Eunice C
I would like to see a one of payment. This would help pay a bill or if we need car repairs or white goods need replacing, this will help a great deal, lifting the worry off our shoulders wondering how we are going to pay for it.
Elizabeth C
I would like to see the money paid in full at the start of the period because then we would have the use
of the money for the full year rather than e.g. have only half of it half way through the year.
The amount is devalued by delaying and spreading it out throughout the year.
This is what has helped decreased the value of “Cost of living” increases in State Government Superannuation payments
over the years. Just a couple of years ago annual increases were paid sometime after the whole year had passed.
As you are no doubt aware, those of us who took the salary option 14 to 15 years ago have received just over
half of the increase which occurred in inflation/cost of living over those periods of time leading to a significant
loss of income below that which was promised or expected.
Tony K
I’m not sure if the payment is spread over fortnightly payments, if people like my wife & I who are living in Housing Trust homes, will have our rents rise according to the increase in our pension. This is was happens when we get a pension rise so we are really no better of than before because everything else goes up.
Brian C
I’d rather see a proper review of the whole pension in light of the considered cost of living at a reasonable rate (providing neither a tight nor luxurious life style) and have it indexed to inflation. Forget the one-off schemes which are vote buyers and have no funding for the future.
Joy D
Definitely the senior’s bonus must be in a lump sum payment as otherwise many working seniors would miss out altogether because if it was paid as addition to fortnightly pension only seniors on a pension would get anything.
Cely T
I think the one off payment does not help in the long term. I would prefer a weekly rise in the pension so that I can budget for everday expenses and put aside exrta to provide for unexpected expenses. Sometimes a one off payment is wasted.
Brunola
Quality of life
On March 20 the Senate Standing Committee on Community Affairs completed its enquiry into the cost of living pressures on older Australians.
Hundreds of submissions were received from individuals, not-for-profits, and different levels of government, and the final report, entitled A decent quality of life, was released with 15 recommendations.
The Executive Report noted something that most @boutSeniors subscribers have been saying for a while – that whilst the average wealth of older people in Australia has increased, the research obscures the fact that the distribution of wealth amongst older Australians is unbalance, and a significant minority are suffering increasing financial stress due to cost of living pressures. This stress is so significant they do not enjoy a decent quality of life. The report goes on to say that those most at risk are single pensioners (especially women) who receive the full-rate pension and live in private rental accommodation. With more and more older Australians taking on roles as carers or volunteers or both, participation is high, but this contribution is under recognised.
Need we go on?
Key recommendations included:
· Government review of base pension levels
· Review and standardization of indexation of benefits
· The plight of single older women needs to be addressed
· Review of incentives and initiatives related to superannuation be continued
· The usage and impact of reverse mortgages to be monitored
· The efficacy of indirect benefits to me reviewed
· Government to review range of financial advisory options for older Australians, including retirement planning
·
Go here for the full report including executive snapshot and recommendations.
Pension woes
Are our politicians in touch with how people really live on a day-to- day basis? Find out what Tony Abbott MP has to say about the current age pension rate.
A few weeks ago, @boutSeniors asked Tony Abbott MP and Senator Jenny Macklin to comment on the age pension. The questions themselves weren’t difficult;
· Is the Age Pension adequate?
· If not, by how much should it be increased?
but they appear to be too difficult to answer for Senator Jenny Macklin, who has yet to reply. Tony Abbott did make a comment right before our deadline, you decide if he answers the questions.
“It’s not easy to live on the pension, especially for people who don’t own a home. The Howard Government permanently improved pensioners’ position by legislating that pensions would be at least 25 per cent of average weekly earnings. This has meant that pensioners gain some benefit from improvements in the economy.”
Here at @boutSeniors, we are passionate about championing issues which affect the most vulnerable sector of the community and will continue to address these issues, with or without the aid of our honourable MPs.
Bonus payment confirmed
Prime Minister, Kevin Rudd last week ended speculation regarding the payment of this year’s Seniors’ and Carers’ Bonus Payment but would not be drawn on how the payment would be delivered in the future.
Seniors and carers will not be worse off following the first Labor Government budget is the Prime Minister’s promise but how the money will be paid remains to be seen. Approximately $325million is due to be paid under the current bonus scheme this year, the impact of which on Australia’s current economy and rate of inflation cannot be ignored. It should also be noted that this sum was not included in the forward budget rates by previous governments and as such, has no funding.
There is speculation that the amount currently paid in a one-off bonus will be spread over current fortnightly pension and carer payments, making the impact to future budgets and the economy easier to manage. This will be a concern for many who rely on these payments to bring their income to somewhere near an acceptable level.
Mr Rudd conceded that the speculation on these payments had been difficult for those affected by the issue, some of the most financially vulnerable, in the country but stated that the subject of how the bonus payment would be made in the future was a budget issue.
What are your views on how the payment should be made? ?
Irish-Australian pensions
With Australian/Irish migration so common these days, many people are finding it difficult to meet residency requirements for pension payments, so what do you do if you haven’t lived anywhere long enough?
In April 1992, the Australian and Irish Governments created an agreement to ensure citizens of both countries would be able to claim pension rights, even if they didn’t meet the individual residency requirements or contributions necessary in either country. This also served to stop double payment of certain allowances by either country. This agreement was replaced by a more up to date version on 1 January 2006.
Payments covered under this agreement are:
AUSTRALIA
• age pension
• disability support pension (DSP) for severely disabled persons.
• pensions payable to widowed persons.
IRELAND
• old age (contributory) pension
• retirement pension
• invalidity pension
• widow’s and widower’s (contributory)pension
• orphan’s (contributory)allowance, and
• bereavement grant; and
• the liability for the payment of employment and self-employment insurance.
NB. Irish social assistance (non-contributory) payments are not covered under the Agreement. Whether or not you will qualify depends entirely upon Ireland’s welfare legislation.
If you think you may benefit from this agreement, you can find out more information, including who to claim by clicking here.
Community broadband
In line with Labor’s undertaking to improve broadband access and speed to all Australians, they have also made a technology promise to older Australians.
The new government says it will establish a Seniors’ Internet Fund to provide grants of up to $10,000 for 2000 eligible community organisations to set up free internet connections for their members.
So get your community group working on an application and take advantage of this opportunity.
Easing the load
The Labor Party’s plan to help older Australians is called Making Ends Meet and is aimed at both pensioners and self-funded retirees.
Promises include:
· Increasing the Utilities Allowance to $500 a year, to be paid quarterly rather than twice a year, making the Utilities Allowance as regular as utility bills.
· Establishing A National Reciprocal Public Transport Entitlement to ensure State Government Seniors Card holders have the benefit of travel concessions anywhere in Australia.
· Increasing the Telephone Allowance by 50 per cent – from $88 to $132 a year – to help with the cost of an internet connection at home.
Jenny Macklin responds
Based on @boutSeniors subscribers’ strong concerns about the inadequacy of the Age Pension, we put a number of questions to the (then) Shadow Minister.
Dear Ms Macklin
A recent blog on @boutSeniors website pointed to the inadequacy and piecemeal nature of the Age Pension. We have received a number of comments on this blog and there are also many posts on our forum related to this subject.
Would the Minister care to comment on the following questions:
1. Do you believe the current rate of the Age Pension is adequate? [The FORTNIGHTLY rate for a single is $537.70 (weekly $269) and for a couple, $449.10 each (weekly $225)].
2. If yes, would you comment on the highly regarded 2007 Westpac/ASFA Retirement Standards breakdown, which indicates that currently, PER WEEK a modest income for a single is $357.74; a comfortable income for a single is $693.11; and a modest income for a couple is $501.59 and a comfortable income for a couple is $927.72?
3. If your answer to the first question is no, what is your party planning to do to lift the rate of the Age Pension?
Jenny Macklin’s reply was as follows:
I understand that it can be difficult for many pensioners to meet the rising cost of goods like food, petrol and utilities bills. Federal Labor’s plan to help pensioners with the costs of living – Making Ends Meet – was released earlier this month, and includes increases to the Utilities Allowance and the Telephone Allowance for eligible pensioners. We hope that this will go some way to helping pensioners with their cost of living pressures. We have also committed to increasing the pension in line with a new pensioner cost of living index, which would more accurately reflect the wider consumer price index, or in line with increases to the benchmark of 25 per cent of average male weekly earnings, whichever is higher.
Aged care
Labor’s aged care policy tackles issues around transition from hospital to nursing home and the aged care skills shortage.
The Labor party says it is going to:
· Create up to 2000 transition care beds for older people waiting in hospital beds for an aged care place.
· Boost the number of qualified nurses and personal care workers in aged care services and encourage 1000 qualified nurses who have been out of the workforce to work in the aged care sector.
· Provide zero-interest loans to aged care providers to make up to 2500 permanent residential aged care beds.
Online complaints help
The Australian Securities and Investments Commission (ASIC) has made it easier for consumers and investors to go online to make a complaint about a financial services business.
ASIC’s public register, which lists all businesses licensed to conduct financial services in Australia, now contains details of external dispute resolution schemes, which help resolve complaints when efforts between companies and consumers have come to a standstill.
ASIC says it is often difficult for consumers to know which dispute resolution schemes to contact and believes this change to their online service will make the whole system more transparent and easy to access.
Consumers have certain legal protections, though limited, when dealing with licensed financial businesses, but they have none if the business is unlicensed. ASIC urges consumers and investors to check the ASIC register to make sure you are dealing with a licensed operator. If you cannot go online, call 1300 300 630, ask for ASIC’s free guide You can complain or to search the ASIC register, click here
Do not call register
Thank goodness the government has finally recognised how utterly annoying and intrusive sales calls are. If you are fed up with being called at home for commercial reasons, then you might want to place your number on the ‘do not call’ register.
You can list both your landline and mobile number on the ‘do not call’ register. Be aware, however, that charities, religious organisations and surprise, surprise… political parties will still be entitled to call you. Once you have registered, it should take up to 30 days for the telemarketing companies to stop annoying…sorry, calling you.
Also – be aware of scams. Some people have been knocking on doors and offering to put residents on the ‘do not call’ register for a fee. The register is a free service, so if you are asked for money, tell the person a simple ‘no’. Whether you say thank you is up to you.
You can, however, register on the real thing for free at an Australia Post office, by calling 1300 792 958 (registration is also available in Italian, Greek, Chinese, Arabic and Vietnamese) or by clicking here
Aged care worker help
More skills training for 3000 aged care workers aims to create a higher level of service in the aged care industry, bringing families, care recipients and everyone involved more peace of mind.
A total of 3279 workers from 1560 aged care homes around Australia will get the opportunity to improve their skills in the third training round of the Federal Government’s ‘Better Skills for Better Care’ program. The program has already seen more than 10,000 personal care workers access vocational training.
This is a good opportunity for aged care workers to gain more skills and raise the standard of industry practices.
Find out more
Aged care workers checked
From 1 March 2007, all employees and volunteers in Australian subsidised aged care services will be required to undergo police checks.
The new legislation has come about after instances of elder abuse in aged care facilities last year. It will be progressively implemented, with existing employees needing to have had police checks by 1 June 2007 and volunteers, by 1 September 2007. Contractors who have unsupervised access to care recipients also require the background checks.
In the case of the discovery of a more minor offense, employers must have procedures in place for assessing a potential employee, including consideration of the level of risk to recipients of care and whether the employee will have direct and unsupervised contact.
The background checks are part of a package of changes, including the implementation of at least one unannounced spot check a year for each aged care home.
Find out more
Government contact list
AboutSeniors has compiled a of relevant government contacts. Please note these names are sorted alphabetically by surname.
MP list
Katter, The Hon Bob, Member for Kennedy
Rudd, The Hon Kevin, Member for Griffith
Senator contact list
Senator The Hon Eric Abetz
Senator Cory Bernardi
Senator Suzanne Boyce
Senator David Bushby
Senator Mathias Cormann
Senator Patricia Crossin
Senator The Hon Christopher Evans
Senator Mitchell Fifield
Senator Mary Jo Fisher
Senator The Hon William Heffernan
Senator The Hon David Johnston
Senator The Hon Joseph Ludwig
Senator Claire M.Moore
Sen Stephen Parry
Senator The Hon Michael Ronaldson
Senator The Hon Judith M.Troeth
Senator The Hon Penny Wong
Diabetes Is An Epidemic
Every 30 seconds a leg is lost to diabetes somewhere in the world. Yet it is estimated up to 85% of the amputations could be avoided. Diabetes kills more people each year than HIV/AIDS – and every day 275 Australian adults develop this killer condition.
Little wonder the Federal Government has found more funding for the next five years for Diabetes Australia which administers the National Diabetes Services Scheme (NDSS). The NDSS is a program which provides blood and urine testing strips, syringes, needles and insulin pump comsumables at subsidised prices to the more than 780,000 Australians with diabetes who are currently registered for these benefits.
Find out how to prevent diabetes, or if you are a sufferer, how to register for these benefits at Diabetes Australia now.
$204 Million Unclaimed
Lost any money? The Australian and Securities Commission (ASIC) holds the records for $204 million worth of unclaimed money from forgotten bank accounts – all those lonely dollars and cents are waiting to be returned to their rightful owners.
The data on ASIC's site goes back to 1989 for savings and 1959 for some unclaimed trading bank accounts. If you suspect you may have let a bank account go unused for over seven years, it's easy to find your money. Look on the ASIC's consumer website, FIDO, and do a free, instant search of your name. If you find an amount eblinging to you, all you need to do is apply at the local branch of your bank for its release.
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Phone 1300 300 630
National Security
National Security Australia embraces measures to protect the Australian community, government and institutions from harm. This website provides a single access point for national security information from the Australian Government.
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Hotline: Freecall 1800 123 400
Emergency Management Australia website provides comprehensive information on preparing for the unexpected, whether it be natural or human caused. There is also valuable guidance on preparedness and response to all disasters and emergency situations, including development of an emergency plan and survival kit, plus links to other federal and state agencies providing emergency services.
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Australian Taxation Office
For all federal government tax matters. The ATO can also provide free help for you in preparing your tax return through the Tax Help program.
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Note the ATO's special seniors' guidance for the Senior Australians Tax Offset and for claiming a superannuation pension or annuity tax offset:
Go there
Understanding tax in retirement is an ATO booklet for people who are planning their retirement or those who have already retired and need to manage changing personal circumstances which may have an effect on their tax situation.
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Entry Points
Australia.gov.au is a web site to help you find the Australian Government services you need without needing to know which government agency to go to. It represents the entry point in providing you with easy access to government information and services.
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Australian Governments' Entry Point is an Australian whole-of-government single point of access which provides links to the ten entry points for Australian, State, Territory and Local governments.
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Find hundreds of Australian Government programs and services available to people living in regional and rural Australia. The Regional Entry Point provides information and links to Commonwealth Government programmes and services relevant to people living in non-metropolitan, rural and remote Australia. The primary objective of the regional portal is to make accessing programmes and services easier without people needing to know the structure of Government or portfolio responsibilities.
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Comparing Managed Funds Online
A calculator on the Fido website has been designed to assist consumers to assess the effect of different choices on fees, contributions or changing funds. For those seeking new investments, or considering changing their existing arrangements, the calculator is a handy online tool to take the hard work our of comparisons for more information. The online calculator is a downloadable excel spreadsheet, which you can save to your computer, fill in, save under a specific file name, and then download again to rework if you wish. It calculates fees, regular contributions, different investment options (i.e. growth, balanced, cash management etc.) as well as the cost/net gain to be made if you change funds. It also allows you to compare two funds side by side. The information to go into the calculator can be obtained from a recent fund statement, or the obligatory product disclosure statement from a fund you are considering.
Top Tax Tips
The FIDO website advises that using your refund to pay even small amounts off a debt or into super can make a big difference in the long run. The top three tips offered on the website are to:
Pay off credit card balances, a personal loan or your home loan-and save substantially by reducing your interest repayments
Make a contribution to your superannuation-and if your income is below $28,000 a co-contribution from the government could mean an extra $1500 will come your way.
Open a savings account or add to an existing account-and watch the power of compounding increase your savings dramatically
Go to the FIDO website now to see how these strategies can workSpouse Super-Splitting
If your spouse is not working they could still accumulate their own superannuation, after new legislation announced by Assistant Treasurer Mal BroughFrom 1 January 2006, personal and employer contributions can be split where Super funds choose to offer this service to its members. Mr Brough said women and low-income earners could particularly benefit from the legislation, which was a 2004 election promise.
The regulations will retain the 'annual split' model previously announced by the Government. This means following the end of each financial year, a fund member can request that contributions made in the previous financial year be split with their spouse.
The legislation would give single-income families access to two termination payments at low thresholds and two reasonable benefit limits.Yes, You Can Complain
By law, consumers of financial products and services have the right to complain if something goes wrong. And there’s a new, free booklet to assist those who don’t know how or where to start.
You can complain (revised version) developed by the Australian Securities and Investments Commission (ASIC), contains everything you need to know to make a complaint about financial products or services such as bank accounts, insurance, superannuation or financial advice.
Results of the latest ANZ Financial Literacy Survey indicated that around 40 per cent of consumers are ‘not very confident’ or ‘not at all confident’ about their ability to make an effective complaint against a bank or financial institution’, Mr Greg Tanzer, ASIC’s Executive Director of Consumer Protection said.
In response to these findings, ASIC has updated You can complain which helps consumers who are not sure how to complain, or who to complain to. It outlines a simple three-step process for resolving problems about financial products or services.
The three steps consumers should follow to make an effective complaint are:
- Contact the firm and explain the problem
- Make a formal complaint to the firm
- Go to an independent complaints scheme.
You can complain gives tips and advice about what to do at each stage of the process. It also includes sample letters of complaint, which consumers can use as a guide for formulating their own complaints, Mr Tanzer said.
Free copies of You can complain are available in English, Arabic, Chinese and Vietnamese by calling ASIC’s Infoline on 1300 300 630, or download copies from ASIC’s consumer website, FIDO.
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Our Changing Families
Whether we like it or not, family life has changed – one in four families include new partners. The Federal Government Child Support Agency has a free guide to help step-families navigate the tricky waters of changing relationships and new arrangements.
A merging of two or more families can make for interesting and challenging times. This new booklet contains strategies, stories, tips and resources which can help everyone understand their shifting roles, assist with practicalities, or help grandparents with how to support their children and grandchildren through such transitions.
The booklet has a section devoted to grandparents, with advice on keeping in touch with the grandchildren, dealing with the new partner, and where you can go for support, as well as information on other websites, community groups and books that might help. Or order a CD-Rom, Dealing with Separation, which contains further information. To find out more or to order the booklet or CD-Rom call 131 272 or click here
seniors.gov.au
This site will assist all older Australians appreciate the services, programs and benefits that are currently available to them across Australia. It addresses the needs of both dependent older people and healthy older people.
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The Commonwealth Regional Information Service (CRIS)
The Federal Government's information access service for country people. This program provides people living outside of the capital cities with information about Federal Government programs, agencies and services.
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For Regional Information Freecall 1800 026 222
Office of the Federal Privacy Commissioner
The Office, amongst other things, gives advice about our privacy laws, your privacy rights and about making complaints on privacy matters.
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or phone (local call charge) 1300 363 992
Grants
Looking for a grant from the Australian Government? GrantsLINK will help you find it. GrantsLINK is your Commonwealth Community Grants web site. Learn how GrantsLINK works, the types of grants the Commonwealth provides, get some general tips on completing your application form, and find out how to get further assistance.
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Department of Immigration & Multicultural & Indigenous Affairs
Go to this site if you are thinking of migrating to Australia or visiting Australia or you want to know about settling in Australia. Also information on multiculturalism, indigenous affairs and resources.
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Comsuper
ComSuper, an Australian Government Business Unit, is responsible for the day to day administration of the CSS, PSS, Military Super and DFRDB superannuation schemes for members of the Australian Public Service, participating employers, and members of the Australian Defence Force. From the Comsuper website, there are links to each of the four schemes where detailed information is available.
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Community Portal
The Community Portal helps Australians find relevant, up-to-date community information and services. There are more than 250 community topics and links to thousands of resources provided by all levels of government and the non-government sector. The Community Portal is for individuals and communities, and includes special sections for community groups and for community developers.
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Commonwealth Ombudsman
For complaints about Australian Government departments and authorities, including the Federal Police. There is also a special advisor for taxation matters.
Go there
or phone the National Complaints Line on 1300 362 072.
Australian Bureau of Statistics
The ABS is Australia's official statistical agency. It provides statistics on a wide range of economic and social matters, covering government, business and the population in general. There is a vast amount of information on their site. You might like to explore statistics on 'Disability, Ageing and Carers' or 'Demography', just to mention a couple under 'Themes'.
For instance, Did you know that life expectancy for a 65 year old in 2000-02 was a further 17 years for males and 21 years for females, compared with a further 11 years for males and 13 years for females in 1901-1910?
Did you also know in 2003 there was a total of 2.6 million carers in Australia, of which 19% (475,000) identified as a primary carer. The male to female sex ratio of all carers was 0.9 and 0.4 for primary carers. Some 454,000 (approximately 1/5) of all carers in Australia were aged 65 years and over, with 25% (113,000) identifying as a primary carer? This snapshot of carers and much more detail from the Australian Bureau of Statistics is available in the Age Matters update which can be accessed on the ABS website.
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