October 2022 Federal Budget
Was there anything in it for older Australians?
The Treasurer Jim Chalmers delivered his first budget last night.
The first budget for a new Government is a time to establish its economic credentials. This was certainly a focus for the Treasurer with a strong emphasis on reducing the forecast deficit, helped by revenue windfalls from higher commodity prices.
Big announcements included:
- An increase in childcare subsidies
- An extension of paid parental leave from 18 to 26 weeks
- Several programs to help address housing availability and affordability including a national aspirational target to build one million new homes over 5 years from 2024
- More support for students including nearly half a million new fee free TAFE places and Government support for additional university places for under represented peoples in areas such as teaching, nursing and engineering.
- An additional $1.4b to expand the Pharmaceutical Benefits Scheme (PBS) including for Covid treatments and cancer and a further $787m to reduce the PBS co-payments
- An increase in the permanent migration visas from 160,000 to 195,000 to help address labour and skills shortages.
What about older Australians?
There wasn’t a lot really. Essentially the Treasurer outlined three initiatives that we already knew about:
- The increased thresholds for the CSHC were confirmed and the legislation is currently going through Parliament. You can read more about these here.
- The work bonus increase to $11,800 was also confirmed and it is also currently going through Parliament.
- The contribution age for downsizer contributions was lowered to age 55 and above. This will enable more people preparing for retirement to get more money into super. As with the first two points the legislation for this is currently passing through Parliament.
There was also a commitment to increase Aged Care support including:
- Mandating care minutes per Age Care resident
- Mandating the presence of a registered nurse 24:7
- Funding for the Maggie Beer Foundation to provide training to staff to meet new nutritional standards
What didn’t we see?
Cost of living pressures are facing us all. The Age Pension keeps up with inflation but self funded retirees don’t benefit from that. And from comments I have received on previous articles many on the Age Pension don’t see the inflation indexed rises in the Age Pension as being sufficient to meet the rising prices on essentials.
We will keep you updated on the passage of the CSHC threshold rises, the downsizer contribution and the work bonus increase as they pass through Parliament over the next few days.
So what are your thoughts on the budget? Would you have liked to see more in it for older Australians or do you think that given the economic circumstances the balance was about right?
Absolutely nothing here for a single pensioner !!!
Still nothing for self funded retirees, they want you to look after yourself and boost your super for retirement but we have no benefits
We should get discount on our pharmacy and rates etc. not asking for money but these simple things could help. I’m NZ and UK you still get the aged pension even if you can fund yourself. We have paid taxes all our life too. There many on Centrelink that are not being honest in their income , those on the dole should be made to work for it . We are paying for them from our taxes
Nothing in this budget for Senior Pensioners . We need increases to match C P I.
Increase in paid parental leave is yet another killer on small business operators. I suspect many small business proprietors will lock up shop completely as it isn’t viable for them to continue. I ran a small business and my staff were taking home more pay and benefits than I did hence I closed up and retired on a government pension.
PPL is paid by the government, via Centrelink. Not by the Employer.
Self funded retirees should have access to a health care card. We have done the right thing and saved all our working life to then get no help whatsoever. Downsizing so as we have a spare bit of money to live on, we were penalised by paying stamp duty. Now we are paying to go to the doctors. Paying full price for scripts. Our money will not last for ever. If we don’t get some sort of help now we will have no choice but to go on pensions. At least give us a Health Care Card.
Gull agree Lynette I’m self retired payed my taxes and managed my savings and investments to get this far now I ge absolutely nothing from the government no recognition of my contribution to taxes I’ve paid we should at least get a healthcare card
what about the tax savings you had with salary sacrifice?
Can not have it both ways.
I beg your pardon, you make big assumptions. Most self-funded retirees live on savings made over a lifetime, from fully taxed income, so as not be a burden on society. We don’t ask for the pension, but resent being insulted every time we go to the chemist and pay 9-10 times the price of medication, and are denied all discounts etc that pensioners get. I came as a migrant 52 years ago, never collected government money, and paid taxes all of these years in work that served the community. The denial of a Seniors Health Care card is an insult and a scandal. Our modest investments which help Australian business and employment, have also suffered a 20% loss over the last couple of years, apart from other stresses. I wish now that I had spent my superannuation on luxuries, as some of higher paid people, including senior public servants, who are now collecting pensions, Health cards and other discounts.
Who said all self-funded retirees used salary-sacrifice while building their super? Many who have SMSFs are property investors while others have share portfolios in their SMSFs. All those would have been bought with after-tax money
Well Laurence – Aren’t you lucky, you have obviously been given the opportunity to add to your super and avail yourself of certain Tax Benefits – many of us oldies have not had any of these opportunities. I was a State Government employee who on retirement took a fortnightly pension that is indexed by CPI (September quarter) from 1st January of each year. Whereas in the past my pension was a little above the Old Age Pension with the adjustments that have been awarded to our pension have left us in a position that we are now getting far less than the Aged Pension – and we do not qualify for any benefits. May I point out to you that it has been stated that inflation is currently 8%, but (CPI) the adjustment that we will be awarded from 1st January will be (CPI) 1.8% – and that being the princely sum of $12.77 per week. So much for Superannuation – Oh yes, I did have monies in the Bank for some years that did pay some Interest and that enabled us to exist comfortably, but the Reserve Bank Australia to care of that – we get nothing from these monies now. Of course the Banks are making RECORD PROFITS and undoubtedly the Big Wigs at the RBA are being paid a HUGE SALARY – but what about “US” the Self-funded Retirees?
You assume that a Concession Card equates to bulk billing. It doesn’t. Most doctors / specialists charge Pensioners the normal going rate.
Nothing for single pensioners and moreover if willing to work restricted by cap which is too low. Why can’t we have the ability to work like those in NZ, USA and UK. Politicians should be glad that pensioners are willing and able to contribute to the economy!
Catherine is absolutely correct. Our penalties system is so antiquated that the politicians don’t understand it, and think that there is a huge concession when all it is is 25% of that amount. The rate should be lifted to $1000 per WEEK and you would then see a realistic number of pensioners returning to the legal workforce, and tax paid.
There is nothing in this budget to help self-funded retirees. Why can’t the basic pension rate be extended to all on attaining pensionable age and satisfying the other criteria. This is done in NZ and other countries where pensioners continue to work and contribute to the economy without being penalized. If NZ and UK and Canada can provide this why not Australia? At the very minimum the income thresholds for pension eligibility should be lifted to reflect the current cost of living pressures so pensioners get some sort of relief to ease the struggle to maintain a decent standard of living. Self-funded retirees seem to be one category that is being consistently penalized for working hard, saving and being honest!! Not fair by any circumstances.
I agree whole heartedly with frank Valastro. What is extended maternity/parental leave going to achieve for the economy. We do not have enough workers now in the workplace and to extend the leave stretches it even further with more burden on business.
My husband and I lived in NZ for several years and my husband being a New Zealander citizen was eligible and was paid for their pension for the years he was there. I must add he has lived in Aust. for more than 50years paid tax and we own a small business, therefore more tax paid by him. Over in NZ EVERYONE receives the aged pension no matter what your situation, but you pay tax on it from the first dollar paid to you. Very fair system. He tried to receive the pension here in Aust. prior to moving back to NZ but because we have been careful with our money, I continue to work, and we have some equity. Do not pass go, do not collect $200. He isn’t able to even get a health card. The Govt., which every the political persuasion seems to think you can continue to prop yourself up and everyone else. Makes me scared to consider retirement in 5 years. This budget just shows how middle-class Aust. are always left to hang.
This aspect tripped me up as a New Zealander I am not eligible for the NZ pension..How long do you need to live in NZ to get the pension?
You need to have lived in New Zealand, the Cook Islands, Niue or Tokelau (or a combination of these) for at least 5 years since you turned 50.
I was looking forward to retirement from full time work. But as it gets closer I will not be able to live on the low income that is available. Seems that I will need to continue some part time work to supplement my entitlements. This is not what I envisioned. I guess I will just keep working until I am not able to. The other choice is to sell my house and move to another country where your money goes a lot further. Thanks Australia.
All comments I believe to be absolutely correct in their comment. Australia has a system designed as a disincentive for persons to put away monies for their retirement. That one should contribute to the taxation system all your working life and then be penalized for accumulating a few assets is nothing but a national disgrace. In the US all citizens who pay into social security receive their contributions on retirement. Even Bill Gates gets a social security cheque every month, and rightly so he’s contributed to the system each payday.
And, lets not forget that our politicians exempted themselves from paying the higher Medicare levies and superannuation taxes when the Gillard Government imposed a contribution ceiling on the high savers.
theGoverment to needs to wake up and help older aussies Im 64 not old enough for a pension ,cant even get a health care card to help off set the price of scripts, most needed for diabetes husbands wage is a little over the cut fir health care card ,he get his scripts because he is on closing the gap ,Im not considered a dependent even he fully supports me as I dont work due health issues,why cant the government help those middle income who are well off we live on strict income just to survive week to week with no extras no going out we simply cant affird that luxury,take a year to save for a small 3 day cruise
Typical Labor Government Budget. Nothing for Small Business and Nothing for Self-Funded Retirees! More entitlements for staff that businesses have to fund. These people have no idea about what it takes to run a small business. Like others commenting, we have saved to be Self-Funded retirees and the Government take us for granted and rather than give us something as small as a Health Card, they look for ways to make us pay more, look out for the resurrection of the Franking Credits issue under this pathetic mob!
Agree nothing – and still waiting for changes to the income limits to the Seniors Health Care card.!!
The increase in immigration is a disaster for us all as the long term social problems that develop from this far outweigh the short term benefits.
Unfortunately the social problems have grown since Kevin Rudd’s days but they will surely come back to bite us all as the problems get bigger and bigger.
I’m just looking forwards to being retired. I’ve worked all my life and will be almost fully funded. I wouldn’t mind working for a couple of days a week when i retire if i can but would be good to be supported by the government for a while as i have paid taxes for the last 50 years. Doubt i will get much from the government!!
How strange, unless I miss my guess, only one comment above seems to have come from a Labour supporter. Although one would have to assume given their landslide election win that some of the above commentators voted for this useless lot. Absolutely correct all of above about “unfairness” and especially as no-one has mentioned any relief for pensioners of any kind because there is none. Not even the lie about $275 off your power bills, whoever believed they could actually achieve that was always going to be disappointed. The so called power bill relief was not due till 2025 anyway, big deal inflation would have made that amount superfluous anyway. I am a old age pensioner who also worked many years in NZ and can testify as to the fact ALL NZ’s on reaching retirement age receive a pension albeit via the number of years of NZ employment there. I have a health card and it is muchly used. Without it my wife and I would have to forego some much needed expensive medication. Blaming the conflict in Ukraine and the previous Government repeatedly is not going to wash for too long as this Government is turning out to be as was expected, nothing more than a “Greens” collaboration and we will and are already paying for it. Roll on the next election.
Come on folks. At least Kevin Rudd has something to smile about – indexed $3000 a week for the rest of his life but it probably doesn’t include the 2 bedroom apartment, 2 staff and a driver and free air travel, totally independent of his wife being worth $!70.000,000