E mbargoed until 1900 hours 13.3.77 3HA 13 March
3YB 17 March
. J1, AUS': ' ALIA
FOR PRESS 13 MARCH 1977
ELECTORATE TALK
The Federal Government this week announced that the two and a
quarter rili on Australians who receive pensions or benefits
will i-eceive increased payments in May. Single pensioners will
receive a $ 3.60 a week rise and a pensioner married couple will
receive a $ 6.00 a week increase. This means that the max: i. mim
standard pension rate becomes $ 47.10 a week, while the maximum
married rate becomes $ 78.50 a week. Repatriation pensions in
all categories also will be increased by the same rate.
The decision honours our often stated commitment that: increases
in the Consumer Price Index will be automatically passed on to
pensioners. The increases that come into effect from May
represent the full percentage flow-on from the last two
Consumer Price Index increases.
In my Policy Speech prior to the Election, I said that " the
real value of pensions will be preserved." Clearly, we have
done just that. Since we'took office, the total increase in
the standard pension has been $ 8.35 a week an increase of
21.5%. The total increase in the combined married pension has
been $ 12 a week.
We are committed to protect pensioners' pensions against
inflation. We are committed to take politics out of pension
increases by giving automatic increases in line with price rises
twice each year. Our actions have firmly demonstrated that we
are honouring that commitment.
The Department of Social Security carries out vital programmes
the extent and significance of which are often missed. The
budget allocation for this financial year for the payments of
social security pensions is 32% more than actual expenditure
in 1975/ 76. In 1976 there were an estimated 1.9 million
pensioners and beneficiaries receiving assistance through the
Dapartmen-: f Social Security. There are 1.7 million pension
and benefi-c-ieques issued each fortnight. The estimated
expenditure each fortnight on pensions and benefits is
$ 140 Over a full year the Department issues more
than 66 -illion cheques. For this financial year the estimated
total e-.:: di: ure by the Department is $ 5,580 million that
represa:. s almost half of income tax receipts from individuals. / In view
2
In view of our expenditure commitment in this vital area, the
Government is paying attention to making sure that the community
gets the best possible value from outlay. We are determined that
our welfare programires are directed to people in real need. We
are determined to make sure that the social security administration
is both efficient and sensitive to the needs of individuals.
The Government also moved last year to make many more people
eligible for the pension. The Government gave an undertaking
that it would m ove towards replacing means tests with an income
test, so that those who had saved would not be penalised. The
Government saw this as an opportunity to eliminate much administrative
complexity.
Effective from 11. November 1976 the Government abolished the
separate property component in the means test for pensioners.
The Government's decision followed the lines adopted by Professor
Henderson in his first main report on poverty in which he said:
" The. existing means test which determines eligibility includes a
treatment of ;', sets which is a relic of far less generous days."
He recommende ; hat the treatment of asset incomes for pension
purposes shou, be no different from other incomes. We agreed,
and acted accordingly.
These measures along with the Government's three year pro-ramnme
for aged or disabled persons accommodation and senior citizen
centres are the clearest possible demonstration of this
Government's desire to assist those in need. Our social welfare
policy seeks to enhance the security, dignity, self-reliance and
well-being of Australians. We have put these words into positive
action for the benefit of millions of Australians. 0