LABOR CONTINUES TO REJECT TONY ABBOTT’S CUTS TO PENSION INDEXATION
March 14, 2015
Labor will reject any proposal to index the pension to CPI only.
Australian pensioners won’t be tricked by Scott Morrison’s latest attempt to cut pension indexation.
This is not a compromise. It's a mean trick.
Whilst Labor does not oppose a regular review into pension adequacy, it must not come at the cost of a proper indexation method.
CPI indexation will see the pension reduced dramatically, pushing pensioners below the poverty line.
The Australian Council of Social Service (ACOSS) estimates that this will result in an $80 a week cut to the pension over the next decade.
Research from ANU has shown that if Tony Abbott gets his way the pension will drop from 28 per cent of average weekly earnings today to just 16 per cent by 2055.
The only way to protect the pension is to reject this cut to indexation entirely.
And the only way to guarantee proper living standards for pensioners is to link pension indexation to wages.
Today's proposal has nothing to do with protecting pensioners and everything to do with protecting the leadership of Tony Abbott.
In 2009, Labor reviewed the adequacy of the pension and delivered the largest increase to the pension in 100 years.
Labor also improved pension indexation with a new pensioner living cost index and increased the wages benchmark for the pension from 25 percent of Male Total Weekly Earnings (MTAWE) to 27.7% of MTAWE.
Tony Abbott's cuts will reverse this historic increase.
They risk creating an underclass of pensioners in Australia.
Scott Morrison should drop these savage cuts to pension indexation for good.
SATURDAY, 14 MARCH 2015