LOCALS JOIN THE CALL TO SUPPORT THE COALITION ON FOOD ADVERTISING TO CHILDREN
The Member for Berowra, Philip Ruddock MP said today that the Rudd Government’s promise to improve the living conditions of older Australians by changing the indexation formula for aged pensions will make virtually no difference to the incomes of older people and will affect my own local constituents.
Questions in yesterday’s Budget Estimates hearings revealed that Labor's new formula would make pensioners better off about once every decade.
During the recent election Labor promised it would "index pensions by the Living Cost Index for Aged Pensioner Households published by the ABS, the Consumer Price Index or 25 per cent of Male Total Average Weekly Earnings – whichever is the greater.” (Making Ends Meet – Federal Labor’s plans for older Australians)
“The Prime Minister and his ministers made a huge song and dance about their concern for older Australians during the election campaign, but now we learn that their big initiative to increase pensions is worth very little,” Mr Ruddock said.
Under the Howard Government, pensions were linked to the twin indexes of CPI and MTAWE, with increases being determined by whichever was the higher of these two. This frequently resulted over the last decade in pension increases which were greater than the inflation rate, helping many pensioners keep their heads above water.
The Rudd Government promised to add the ABS’ cost of living index into the mix, claiming this would bring about bigger pension increases. But yesterday’s revelation by FHaCSIA shows this to be a gross exaggeration.
“The fact is, only once in the past nine years - and then only for 6 months! - has the ABS’ cost of living index been higher than either CPI or MTAWE,” Philip Ruddock said.