MORRISON GETS IT WRONG ON PENSION INDEXATION

March 14, 2015


Scott Morrison has today incorrectly claimed that the pension was indexed to CPI in September of last year.

In fact, the Parliamentary Library has confirmed that the pension was indexed to Labor’s Pensioner and Beneficiary Living Cost Index, resulting in a greater increase than if it has been indexed to CPI.

“Pension indexation in September 2014 was driven by movements in the Pensioner and Beneficiary Living Cost Index (PBLCI), which delivered a higher pension rate than indexation to the Consumer Price Index”

PARLIAMENTARY LIBRARY

Had it been indexed to CPI, pensioners would now be getting less. Scott Morrison should know this.

Either Scott Morrison doesn’t understand how the pension is indexed, or he is deliberately misleading Australian pensioners.

Either way, he should correct his error immediately and start being honest with Australian pensioners.

The reality is Scott Morrison’s plan to index the pension to CPI will drive down the value of the pension and push pensioners into poverty.

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 the 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.

Scott Morrison is seeking to reverse these historic reforms. His proposal should be rejected.

SATURDAY, 14 MARCH 2015