E&OE..................
Thank you very much Everald, ladies and gentlemen. It's a pleasure for me
to be back again to the National Seniors' Association Convention and to
have been invited to address you, and to declare it open.
I thank you Everald for the kind remarks that you have offered in relation
to the East Timor issue. This has been the biggest foreign policy and defence
challenge to confront Australia for more than 30 years and I know that every
Australian will be thinking of our men and women in East Timor, will be
immensely proud of what they are doing, of the professional way in which
they have gone about their task, and they will be aware that they are carrying
a very special leadership role and a very special sense of honour and distinction
to the Australian nation because this indeed is the first time in the history
of Australia that we have been invited to play a leadership role in an international
peacekeeping operation. It is the largest military involvement for Australian
forces since the Vietnam War more than 30 years ago.
We hope that they will all be safe and they will all come home to their
loved ones soon. But it is a dangerous mission and it's a mission that is
being carried out in the name of all of us because we share in common with
the rest of the world certain values about the right of men and women to
freedom everywhere in the world.
I will be having the opportunity later on this morning of meeting for the
first time Xanana Gusmao who is recognised as the most significant leader
of the East Timorese people. Now, I know that what has happened in East
Timor in recent months has touched a lot of Australians right across the
political spectrum and irrespective of differences of opinion they might
have on other issues, and as I said in my address to the nation, we are
there for two reasons. We are there because it is right to be there and
we are there because it is in Australia's interest to be there, and we should
remind ourselves that we are there also at the invitation of the United
Nations and with the approval of the Government of Indonesia.
I am, as I said, delighted to be here to open this Association's convention
to honour the contribution that the members of this association, and that
generation of Australians from which they are drawn, has made to the development
of our country.
As we survey the national economic scene and as we look at Australia's place
in the world we see a country that in national economic terms has not been
as strong and as prosperous as it is now for more than 30 years. In many
ways, the Australian economy now is better and stronger than it's ever been.
Our inflation rate is low, our interest rates are low, I know that doesn't
necessarily come with greetings from everybody in this audience I recognise
that, there's an upside and a downside to every state but as far as the
contribution to the national economic activity in investment is concerned,
it does have advantages. We have got our budget in surplus. We have very
high levels of business investment, we have strong levels of economic growth,
we have stared down the worst economic downturn the Asia Pacific region
has seen since World War II and we have actually done better on that score
than I suspected we would do about a year ago.
So nationally, the scene is very strong and I am very happy to say that
unemployment is looking better than I thought it would be a year ago. There
is every prospect that unemployment can fall further, just how much I am
not going to predict, but employment growth is very strong and over the
last three and a half years we've created 526,000 new jobs in this country.
So economically, Australia is in a strong position. We are recognised as
being in a strong position around the world and that, of course, has underwritten
our capacity to do other things. One of the reasons why we have been able
to assume a leadership role in events in our region is that our economy
is in a strong position. If it weren't we wouldn't be able to do that nearly
as convincingly.
We did have to take, when we first came into office, a number of budget
decisions that not everybody agreed with and they still don't agree with
that and I understand that. And you don't have the opportunity in government
if you are moving forward and undertaking necessary reforms to do so without
there being some criticism. But we have endeavoured to spread the burden
fairly and evenly. We have endeavoured to protect the vulnerable in the
community and we have also endeavoured to keep the goals of the Government
fixed very firmly on necessary economic reform.
Now, I know that the economic reform that is of most interest to people
at the present time is the introduction of a new taxation system. We had
a very lengthy debate in the lead up to the last election and I know that
there were a lot of retired people who were concerned about aspects of the
tax package. And I want to assure you that in the months that lie between
now and the introduction of the tax package on the 1st of July
next year the Government will be committing a lot of resources to fully
explaining how the system is going to work. It is a big change. It's a very
beneficial change. It's going to make the operations of business in Australia
less costly. It's going to reduce the cost of our exports. It's going to
reduce the cost of fuel which is very important for our country people and
particularly for people who live in the larger States and the more sparsely
populated areas of Australia.
There are going to be very big reductions in income tax. There are going
to be special provisions for retired people and for people on the pension.
Under the new tax system, for example, aged pensioners will benefit from
higher aged and service pensions and allowances, a higher pensioner rebate,
a one off savings bonus and also if they pay tax lower taxation rates.
From July of next year pensions will rise by four per cent and the base
pension will continue to be protected by ensuring that the maximum single
rate is at least 25 per cent of male total average weekly earnings. Pensions
will be guaranteed, let me repeat, guaranteed to stay at least two per cent
ahead of price rises. The existing pension rebates and low income aged persons
rebate will be maintained to ensure that maximum rate pensioners and low
income self-funded retirees continue to pay no personal income tax.
On top of this, the maximum rebate will rise by $250 a year and $175 a year
for each member of a couple. This means that pensioners and eligible self-funded
retirees will be able to earn more from the 1st of July next
year without paying personal income tax. The pension income test withdrawal
rate has also been reduced to allow pensioners to earn more without such
a dramatic effect on their pension. And to ensure that these assistance
measures are maintained over time the Government will set up an independent
compensation review in 2003.
The Government will provide two new savings bonuses to help maintain the
value of the savings of older Australians following the introduction of
the GST. There will be a one off non-taxable aged persons savings bonus
of up to $1,000 for each person aged 60 or more on the 1st of
July next year. There will also be an additional one off non-taxable self-funded
retirees' supplementary bonus of up to $2,000 for each person aged 55 or
more who does not receive the Commonwealth income support payment.
The Government is conducting a comprehensive education and communication
campaign to inform Australians about the new tax system. For example, information
is being provided to older Australians through the quarterly newsletter
Aged Pension News.
In addition to the fundamental changes to the tax system, which include
incidentally the abolition of provisional taxation and the introduction
of imputation credits, there have been major changes to business taxation
arrangements which are in some respects of special significance to retired
people.
The proposed reduction in capital gains tax, if it secures parliamentary
approval, will greatly benefit self-funded retirees. For them the capital
gains tax rate will effectively be cut in half while for those still operating
farms or others sorts of businesses the rate will effectively fall by up
to 75 per cent.
People over 55 who sell their farm or other small business that they have
owned for more than 15 years for the purposes of living on the proceeds
for retirement will be exempted from capital gains tax altogether. And that
represents a very significant reform which will be of enormous benefit to
many people within the age group represented by this audience.
I know that the changes involved in tax reform are extensive. I also know
from my years of political life that it's always possible to run a scare
campaign. And we ran the gauntlet of a lot of scare campaigns on taxation
reform. The scare campaign was run during the election campaign, it was
run again while we were negotiating the legislation through Parliament,
and it goes on. But let me assure you that not only are there enormous benefits
for the whole country, for all of us as Australians in these reforms, there
are also very significant benefits for individuals. And we have gone out
of our way to protect not only the vulnerable in our community but also
retired people who have earned the right to have a secure income and lifestyle
in their retirement, and are entitled to be protected against any assault
on that sense of security by major changes such as taxation reform.
The Government of course is not only looking at taxation policy and how
it impacts on older people, but also other policy areas. Health care is
of great importance to all of us and responding to the practical health
care needs of older Australians has been a major priority of my Government.
And we have done a number of things. We've provided a 30% tax rebate for
private health insurance premiums, and that will be of particular benefit
to retired people. It will reward those who have taken out private health
insurance, it is non-means tested, and I know that particular element is
especially welcome. And it will play a major role in strengthening the place
of private health insurance in the overall health system of this country.
We have extended the Commonwealth Seniors' Card to a further 220,000 self-funded
retirees by increasing the income limits for those cards. And we have extended
the Veterans' Gold Card to a further 50,000 World War II veterans.
As a mark of our gratitude and respect for the important role that carers
play in our society, the Government has provided $82 million to boost respite
care services for carers of people with dementia, and other cognitive and
behavioural difficulties. New respite services will be developed and a number
of these will be designed to provide flexible respite care in rural and
remote areas.
In my key note address to the ACOSS Conference last year and just after
the federal election, I undertook to leave as a permanent reminder of the
International Year of Older persons a new basis for a substantial advance
in the quality of health care delivered to older Australians. This year's
budget provided $171 million as a major boost to general practice, and for
the first time the Government has decided to introduce a Medicare benefits
scheme item for annual voluntary health assessments for all people 75 years
of age and over. And these health assessments will be undertaken at home
where possible, and will help older Australians to remain in their homes
a lot longer.
From next month and for the first time Medicare will provide funding for
GPs in the work they undertake with other care providers in planning care
for people, particularly older Australians, who have chronic and complex
needs. And this is to be complemented by the practice incentives program
for GPs to ensure that patients aged over 65 with chronic and complex needs
have care plan if they need them. The existing coordinated care trials will
continue to be supported and further developed. And these trials specifically
address the needs of older people who are chronically ill or disadvantaged
with a focus on the frail aged. The Government has also provided $41 million
for the establishment of care link centres to give single regional contact
points across Australia for community care services. These centres will
improve the integration of service delivery particularly for people needing
packages of high-level community care as an alternative to residential care.
The budget has also allocated $6 million to train health workers in further
research into preventing falls, particularly by older people.
The international year of older people has seen many initiatives to recognise
their significant contribution. Two weeks ago I had the pleasure to award
the inaugural Commonwealth Senior Australian of the Year Award to a greatly
loved Australian, Slim Dusty. And I'm pleased that this program will continue
beyond the end of this international year. And I'm particularly pleased
to learn that the National Seniors' Association is joining forces with the
Australia Day Council for a Senior Australian of the Year Award from the
year 2000. I think that's an excellent idea. And in parallel with the Government's
award we have also announced the Commonwealth Recognition Award for senior
Australians to highlight the need to widely recognise the important role
of older people in the Australian community.
Another worthy project that will benefit all of us is the national active
Australia campaign. It's designed to promote the benefits of physical activity
not only for older Australians but indeed for all Australians. And as part
of the Government's Business and Community Partnerships initiative, we have
created the self-service banking and older Australians project. This partnership
involves the Australian Bankers' Association and a number of peak organisations
representing the interests of older people to assist them to understand
the new technology associated with electronic banking.
It is important as all of us receive the benefits of longer life and better
health in our more mature years, it's important to understand the strategic
challenge that this represents for governments of whatever particular stripe.
In 20 years time there will be almost twice as many people aged over 65
years or more as there are now. It's important to recognise that the majority
of these will be women. By the year 2021 it's projected that nearly one
in five Australians will be a women 65 years or over. These trends provide
not only a major challenge, but they also provide major opportunities for
our community. And it's very important that we look at these developments
not in a negative light, but indeed in an overwhelmingly positive light.
Australia is a lot better positioned to cope financially with population
ageing than most OECD countries because we do have a relatively younger
age profile than many of the European societies and Japan. We have a commitment
to build on a strong health system which for all the criticisms it receives
is better than the health system in virtually any other country in the world.
And we've made major improvements and reforms in recent years to income
support and retirement incomes policy.
To prepare for this challenge I've established a ministerial reference group,
chaired by the Minister for Aged Care to develop a national strategy for
an ageing Australia. The development of that strategy is the Commonwealth
Government's key policy response to the international year of older people.
I've asked the ministerial reference group to focus on four themes. Firstly
helping Australians to be independent in and provide for their latter years,
world class care, attitudes, lifestyle and community support and healthy
ageing. In the interest, not only of older Australians but indeed of the
entire community, we need to develop policies that maximise the capacity
of all to contribute to the community.
In the time that I have been Prime Minister, I have sought to foster very
much the notion of what I describe as a social coalition and that is a recognition
that if we are to solve our challenges or our problems and to meet our challenges,
we need to recognise that no one part of the community has all the wisdom,
all the resources or all the capacity to meet those challenges or solve
those problems alone.
The Government, acting alone, can't solve problems, individuals acting on
their own can't solve all of their problems. The great welfare organisations
in our community play a strategic role but they need help and support and
the business community, on its own of course, can't solve social problems.
But if you get the four of them working together, if you get the Government
providing income support, not withdrawing any of its services but continuing
to provide the basic social security safety net, if you marshal the voluntary
efforts and the commitment of individuals, if you not only rely on the goodwill
but also the policy wisdom and advice of the great welfare organisations
like Salvation Army and St Vincent De Paul and many others who do a magnificent
job and if you also harness the more philanthropic sentiments of the business
community then together as a coalition, there are very few social challenges
that we can't, as a community, solve.
What we've tried to do as a government is to encourage the development of
that coalition. I announced a number of taxation changes for example last
year that now make it a lot more attractive for wealthier people in the
community to donate resources and donate money to worthy causes and that
has already sparked a greater sense of philanthropy amongst some of the
wealthier people within our society.
What I have said in relation to that is that I am not so much seeking to
encourage those who already give to give more but rather to encourage more
who can afford to do so to give something.
And if we can develop and build this notion of a social coalition, then
I think we have a great capacity as a community in the years ahead to meet
head-on and solve our challenges and our problems.
May I, ladies and gentlemen, return to the theme I touched upon at the beginning
and that is I'm here principally as Prime Minister of Australia to honour
the contribution of those members of the aged cohort that this audience
represents for its continuing contribution to the Australian community;
to say that my Government is very sensitive to and conscious of your legitimate
needs and requests; that you have given much to the Australian community;
you continue to give much to the Australian community and the sense of security
and stability and stable lifestyle that I know all of us seek is a very
legitimate ask of a society to which you have made such a great contribution.
I also speak as the leader of a government that has seen an era of economic
stability, the like of which we have not had for a long time. Now we're
not complacent about that, I learnt very early in my political life never
to get complacent or self-satisfied, I'm not. As soon as you solve one problem,
there is another one around the corner and political life, as in personal
and business life, is always like that.
But we have seen a very strong period of economic growth in Australia, it's
not the only thing but it does make a contribution to one's capacity to
do other things for the benefit of the community.
Now I thank you for inviting me again. I thank your Association for its
contribution. I wish you all well and I declare your Convention open.
[ends]