10 July 2011

$50,000-a-year self funded retirees forgotten in carbon tax compensation package

Approximately 285,000 Australians aged over 65 who don’t receive the age pension or hold a Commonwealth Seniors Health Card will miss out on the carbon tax compensation announced today.

National Seniors Australia chief executive, Michael O’Neill, said: “The government has been generous in compensating pensioners and Commonwealth Seniors Health Card holders with a Clean Energy Supplement projected to be over and above the cost-of-living impact of the carbon tax”.

“National Seniors is concerned, however, that a single self funded retiree on an income of $50,000 or a couple on $80,000 a year will not receive cost-of-living assistance”.

“As debate rages around whether $150,000 a year constitutes a middle-income Australian family, a single self-funded retiree on $51,000 is deemed wealthy enough to resist the price impacts of a carbon tax,” said O’Neill.

“Retirees on fixed incomes have very little capacity to adjust to unforeseen price increases. Many are already struggling with basic living costs,” he said.

The Commonwealth Seniors Health Card entitles low income retirees to cheaper medicines and help with utilities. However, despite rising living costs the card’s income limits of $50,000 for singles and $80,000 for couples have not increased since 2001.

“Today’s announcement only provides impetus to calls for indexation of the Commonwealth Seniors Health Card. Had the 2001 income limits kept pace with inflation, we wouldn’t have had older Australians falling through the carbon tax compensation cracks,” said O’Neill.

Pensioners and Commonwealth Seniors Health Card holders will receive a Clean Energy Supplement of $338 (singles) and $510 (couples) annually, starting March 2013; and a tax free lump sum advance payment of $250 in May 2012.

Media Contact: Sarah Saunders 0409 055 156

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With a quarter of a million members Australia-wide, National Seniors is the consumer lobby for the over 50s. It is the fourth largest organisation of its type in the world.