Older Australians unhappy with Budget measures

16 May 2013
| By Staff |
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COTA Australia, a lobby group for older Australians, said it was disappointing that an increase to Newstart allowances was not included in the 2013 Federal Budget. 

It is one of a number of gripes seniors’ organisations have with the 2013 Federal Budget. 

COTA chief executive Ian Yates said that a third of long-term Newstart beneficiaries were over 55 and at risk of poverty. 

“These people struggle for years on Newstart, with many failing to find employment, until they qualify for the Age Pension,” he said.  

“The result is many older Australians spiralling below the poverty line.” 

It welcomed the 'Housing help for older Australians’ pilot program which supports pensioners looking to downsize their home, but said limitations would significantly reduce eligibility - an issue the organisation would take up with Government.   

“We would like to see pensioners being able to draw income from these funds to meet the costs of aged care and health services, which is not permitted as the scheme currently stands.” 

The scheme let down those most at risk of homelessness, Yates said. 

“COTA has repeatedly called for an increase in rent assistance and the establishment of a Social Housing Growth Fund to support older Australians in the private rental market - many of whom, especially single women, are experiencing significant housing stress,” he said. 

National Seniors said its research showed stamp duty was the main impediment to retirees downsizing rather than the pensions asset test. 

Chief executive Michael O’Neill said older people had been shunted out of the National Disability Scheme (NDIS). 

“It’s disappointing that any Australian who acquires a severe disability after age 65 will not have access to the NDIS, despite paying the increased Medicare levy,” said O’Neill. 

He said it was a human rights issue that should be pursued by the Human Rights Commissioner. 

Despite that, he said seniors fared better than most. 

The Combined Pensioners and Superannuants Association (CPSA) was also disappointed with changes to Newstart and said age discrimination continues to keep older Australians out of the work force. 

“Not increasing Newstart by $50 per week is counterproductive, because it forces people to deplete their savings, including superannuation, to put food on the table and pay the rent,” CPSA Senior Policy Advisor Amelia Christie 

It said rules regarding the housing polit were overly restrictive.  

The Association of Independent Retirees (A.I.R) said it was unhappy concessional caps had been changed again as they were being constantly changed, which led to complexity. 

“Concessional caps for baby boomers and working retirees have changed every year for over five years,”  A.I.R chief executive Max Barton said. 

“Part-pension eligibility has been lowered (and) reduced income has been the consequence.” 

It opposed the taxation of superannuation pension earnings during years of high investment returns. 

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