February 16, 2015

Scott Morrison is again misleading Australian pensioners, today claiming that they will be better off as a result of changes to the deeming rates. 

This is an irresponsible and misleading statement that cynically tries to cover up the truth – Scott Morrison and Tony Abbott are actually cutting the pension.

The reality is that deeming rate changes reflect changes in the rate of returns on investments.

Governments routinely change the deeming rate to make sure that any decreases in investment returns can be offset through pension payments. Labor welcomes this change that ensures pensioners won’t be left out of pocket by changes in the market.

But claiming that pensioners will be better off is just spin from a government which lied to Australian pensioners just to get elected.

Scott Morrison still has legislation before the parliament which will cut the indexation arrangement for the pension, leaving pensioners as much as $80 a week worse off within a decade.

According to the Parliamentary Budget Office, this change will result in $23 billion less in payments to Australian Age Pensioners by 2023.

He also wants to reduce the deeming rate thresholds from $46,600 to $30,000 for singles and from $77,400 to $50,000 for couple.

This means part-pensioners will get less, and some will lose their pension altogether.

Today, the government is trying to suggest that it wants to help these very same pensioners. But if it really wanted to help pensioners, it would back down on its savage cuts to pension payments.

You can’t rip $23 billion out of the pockets of pensioners one day, and then claim that you care about pensioners living standards. 

If Scott Morrison was serious about helping pensioners, he would drop his budget cuts immediately.

Australian pensioners are sick of this government’s lies and spin.


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