Tony Abbott and Joe Hockey must drop their cuts to pension indexation immediately, after this week’s Intergenerational Report revealed the true impact of the Liberal Government’s proposed cuts to pension indexation.
Analysis by Professor Peter Whiteford shows that if Tony Abbott and Joe Hockey get their way, the pension will drop from 28 per cent of average weekly earnings today to just 16 per cent by 2055.
This confirms what Labor has been arguing for nearly a year: if Tony Abbott and Joe Hockey get their way, millions of pensioners will be driven into hardship and poverty.
These cuts will create an underclass of pensioners in Australia.
And the suggestion today that the Government is now planning to shift to Average Weekly Earnings in 2028/29 just doesn’t cut it.
Changing indexation in 2028/2029 would still subject pensioners to twelve years CPI indexation. A shift to Average Weekly Earnings in 2028/29 is still a cut to the pension.
This kind of chaotic and dysfunctional policy making has nothing to do with protecting pensioners and everything to do with protecting Tony Abbott’s leadership.
The only way to protect pensioners is to scrap the proposed cuts to indexation entirely.
Scott Morrison should give pensioners the certainty they deserve and drop these cuts forever.
SATURDAY, 7 MARCH 2015