Tuesday 12th May 2009
Secure and sustainable retirement incomes
“Tonight, Mr Speaker, we are proud to deliver on the Government's commitment to pensioners.
Our pension reforms are aimed at giving pensioners a fair go now, when they need it most. Just as importantly, we will ensure the pension system is sustainable over the longer term.
From 20 September 2009, the Government will provide single pensioners on the full rate with an additional $32.49 per week, bringing the value of their pension to a legislated benchmark of 27.7 per cent of Male Total Average Weekly Earnings.
Couple pensioners will receive an extra $10.14 per week combined, through a new fortnightly Pension Supplement.
And because carers are among the unsung heroes of our community, and because of the financial difficulties they face, this Budget introduces a $600 a year Carer Supplement for all Carer Payment recipients, on top of an increase in their pension.
Recipients of a Carer Allowance will also receive an additional $600 a year for each eligible person in their care.
Pension sustainability
I am also announcing some major structural savings to support the longer term sustainability of our pension system, and the budget more broadly.
Central to this has been a review of the qualifying age for the Age Pension, which will be progressively increased to 67 years by 2023, reflecting increases in life expectancy, and consistent with international trends.
The rate at which the pension is withdrawn with private income will be increased to 50 cents in the dollar, but a more generous work bonus will be introduced for the first $500 of fortnightly employment income, providing extra assistance to those who work.
All existing pensioners will have their payments maintained in real terms, and all singles and couples will receive an increase of at least $10.14 per week.
The Government will reduce the generosity of some superannuation concessions for those with greater private wealth. The cap on concessional super contributions will be lowered and the matching rate of the superannuation co‑contribution will be reduced temporarily.”
For the full text of Treasurer Wayne Swan’s Budget Speech go to
www.budget.gov.au/2009 and follow the links
