AUSTRALIA | Deeming rates have become a contentious issue in the latter part of the federal election campaign, according to COTA and National Seniors Australia.
The Council of the Ageing (COTA) and National Seniors Australia have called on the Federal Government and Opposition to urgently come clean on their plans for deeming rates.
The call followed the government’s refusal to rule out ceasing the current freeze on deeming rates, which feed into means testing for social security payments, including the Age Pension, JobSeeker, and parenting payments.
Advocates for older Australians estimate the move could leave a single age pensioner up to AUD 3300 a year worse off.
COTA Australia Chief Executive, Patricia Sparrow and National Seniors Australia Chief Executive Officer Chris Grice said deeming rates should continue to be frozen while pensioners and other Australians are battling with the current cost of living crisis.
“This would have a huge impact on older Australians ability to make ends meet,” Sparrow said.
“Older Australians, and others whose crucial payments are determined by deeming rates, deserve to know what our political parties have in store for them.
She said the current cost of living pressures are already hitting many Australians, particularly those on fixed incomes, hard.
“To expect people to deal with a drop of more than AUD 3000 on top of what they’re currently trying to cope with is unreasonable at best,” said Sparrow.
“The latest indexation adjustment to the Age Pension in March wouldn’t even allow a pensioner to buy a coffee per week. Pensioners are already struggling; our politicians need to recognise that and confirm they won’t pile more pain on top of what people are already feeling.”
National Seniors Australia Chief Executive Officer, Chris Grice, said the freeze impacted more than 450,000 Age Pensioners.
“Older Australians are struggling to pay competing necessities such as utilities, petrol, groceries, insurances, and rent. The continued freeze on deeming rates would spare part-pensioners and other income support payment recipients a drop in income and the loss of the Commonwealth Seniors Health Card and with it, loss of access to valuable concessions,” Grice said.
“Providing cost-of-living relief with a continued freeze on deeming is a sensible way to help older people meet daily living costs. We need to ensure any changes to deeming rates are fair for everyone, including pensioners.
He said any changes need to be measured, incremental, and transparent in its calculation, so it won’t result in a situation where older Australians who are already struggling under cost-of-living pressures are hit even harder.
“This can’t be a matter of wait and see. For our political parties to attempt to sneak through changes to deeming rates after the election would be outrageous.”
More news here.
