OECD SLAMS ABBOTT’S PENSION, NEWSTART CUTS
December 18, 2014
The Organisation for Economic Development (OECD) has today slammed Tony Abbott’s cuts to the indexation of the Age Pension.
It has also warned of negative consequences resulting from Tony Abbott’s plans to leave young people without Newstart for six months, and argued Tony Abbott’s signature paid parental leave scheme “may not be optimal”.
The OECD’s annual report card for Australia says the proposed cuts to the indexation of the Age Pension mean “the pension’s value will drift down in relation to average incomes and at some point may cross socially acceptable standards of adequacy”.
This means more and more pensioners will find themselves living in poverty.
Instead of cutting the pension, the report suggests that increased superannuation contributions “may provide alternative mechanisms for managing the fiscal challenges of the age pension”.
Unfortunately, Tony Abbott is not only cutting the pension, he is also slowing down Labor’s plan to increase the superannuation guarantee from 9 to 12 per cent.
This will only place further pressure on the sustainability of the Age Pension.
The OECD has also warned that Tony Abbott’s cuts to Newstart for people under 30 could have a ‘significant impact on low-income households’. The OECD argues the policy is likely to have unintended consequences, saying that despite the government’s claims that the change will result in more people getting into work, “less desirable reactions might be significant for example, the changes may cause some to “drop out”.
Before the election, Tony Abbott said there would be no changes to pensions.
These cuts don’t just hurt pensioners and low income Australians, they also hurt the economy.
Labor will stand up for pensioners and low income Australians and fight Tony Abbott’s cruel budget cuts every step of the way.
WEDNESDAY, 17 DECEMBER 2014