KEVIN ANDREWS’ HYPOCRISY ON FAIR PENSION INDEXATION
May 29, 2014
Kevin Andrews’ has not always believed that indexation of pensions should be set at Consumer Price Index (CPI).
In fact, he was once a strong supporter of setting the pension indexation to 25 per cent of Male Total Average Weekly Earnings.
In 2011, Mr Andrews stated:
Furthermore, in September 1997, the Howard government legislated to index pensions using the male total average weekly earnings if that index was higher than the consumer price index. This enabled pensioners to keep ahead of cost-of-living increases and to share directly in the wage increases flowing from the strong economic performance of the Howard government of more than a decade.
KEVIN ANDREWS, HANSARD, 20th of SEPTEMBER 2011
Of course, Kevin Andrews was not the only person who supported the change from CPI to MTAWE.
Then Prime Minister John Howard was the first to actually legislate the indexation arrangements. He said at the time that:
The pensioner continues to be protected…by automatic indexation of their pension, a guaranteed 25 per cent of male average weekly earnings.
JOHN HOWARD, A CURRENT AFFAIR, 12th of MAY 2004
Had Tony Abbott’s indexation been in place for the last four years, pensioners would be $1500 a year worse off.
Labor understands that the CPI does not reflect pensioners’ rising costs of living. Indexing pensions to MTAWE means pensioners can have a decent standard of living.
Tony Abbott’s indexation cut is an attack on that standard of living of Australian pensioners.
THURSDAY, 29 MAY 2014