Tony Abbott and Joe Hockey’s Intergenerational Report reveals the true extent of this Government’s attack on Australia’s pension system.
In 2054/55, pensioners will receive a full $41 billion less.
The report also reveals how unnecessary these savage cuts are.
Under Labor’s fair pension system, spending on pensions will be just 3.6 per cent of GDP in 2054/55 according to the report. This is less than half the OECD’s current average of 7.8 per cent of GDP.
Australia’s pension system is entirely sustainable. Ripping billions from the pockets of pensioners has nothing to do with the sustainability of the system.
The report also suggests that sustainability will become less of an issue as Australia’s superannuation system matures and “the proportion of part-rate pensioners relative to full-rate pensioners is expected to increase”.
Yet the Government is also reducing contributions to the superannuation system.
Joe Hockey’s only proposal to deal with the ageing population is to cut the pension.
Amazingly, the report also models a change from CPI indexation to Average Weekly Earnings in 2028/2029, in contrast to the Government’s current policy.
Has the Government inadvertently announced a new position?
This confirms what Labor has been saying for nearly a year - CPI is a grossly inadequate indexation measure for pensions.
Pensioners will lose billions of dollars if Tony Abbott and Joe Hockey get their way and the pension is indexed by CPI.
Labor will protect the pension and fight these unfair changes.
THURSDAY, 5 MARCH 2015