March 20, 2015

Minister for Social Services, Scott Morrison can’t stop lying about his cuts to the indexation of the pension.

Earlier today Scott Morrison tweeted:

"Pensioners now better off under Coalition than they would have been under Labor."

This is a bald faced lie.

Currently the Age Pension is indexed in line with the highest of three indices: Consumer Price Index (CPI), Male Total Average Weekly Earnings (MTAWE) or the Pensioners and Beneficiary Living Cost Index (PBLCI).

The current system of indexation - created by Labor - ensures the pension is indexed by whichever is the highest of these three measures.

This means that the pension will never go up by less under Labor’s fair indexation system than it would if the pension is indexed to only one measure.

Yet if Tony Abbott gets his way the Age Pension will only be indexed to one measure - CPI.                                  

Mr Morrison either doesn’t understand the current pension indexation system or is a total liar.

The independent Parliamentary Budget Office (PBO) says Mr Morrison’s change will result in a $23 billion cut to the Age Pension by 2024-25.

Mr Morrison should stop misleading Australian pensioners and admit that his cuts to the indexation of the Age Pension will leave pensioners worse off.

Mr Morrison must drop his unfair cuts to pension indexation.  


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