THE VOICE - November 2011

1 November2011 THEVOICEOFPENSIONERSANDSUPERANNUANTSOFNSW

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OF PENSIONERS AND SUPERANNUANTS OF NSWPrint Post Approved PP235387100064 ISSN 10353615 November 2011

ANOPENlETTERTOOURFEDERAlPOlITICIANSRegardingtheProductivityCommission’sreport:CaringforOlderAustralians

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CPSAExecutive(as at 2.11.2010)

Grace Selway OAM PresidentBob JaySecretaryBetty ChamberlainTreasurerBill HollandSenior Vice PresidentAssistant TreasurerSue LatimerVice PresidentMargaret Craven-ScottAssistant SecretaryEdna KayPublications EditorBarbara WrightAssistant Publications EditorShirley BainsMarie Mihell George RayColin Vernon

THEVOICEOF PENSIONERS AND SUPERANNUANTS OF NSW

Editor: Edna KayAssistant Editor: Barbara WrightPhone: 1800 451 488Fax: (02) 9281 9716Email: [email protected]: Antoine Mangion, Joel Tozer & Paul VersteegePrinter: MPD, Unit E1, 46-62 Maddox Street, Alexandria NSW 2015

All content prepared by the editorial and production team with reference to stories on AAP newswire, unless indicated.

THE VOICECPSA, Level 9, 28 Foveaux StSurry Hills NSW 2010

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lettersCarbon compo not all it’s cracked up to beI AM dismayed at the front page of our VOICE for August, which seems nothing more than the mindless reprinting of a Labor Government press release. To quote the opening paragraph “Pensioners … are set to be over-compensated …” Didn’t anybody bother to examine this nonsense before blandly repeating it? Some simple arithmetic would reveal that the single pensioner’s $338 increase per year is only $6.50 per week. According to Treasury’s estimate, the cost of living “is expected to rise” next year by $3.90 per week, so the Government’s ‘generous overcompensation’ must e $2.60 per week, or 37 cents per day! F u r t h e r m o r e , according to the front page story, between June 2012 and March 2013, the increase

will be in the form of a one-off advance of $250. To stretch this over the nine months, we must spend it at no more than 90 cents per day! A further payment of $88 is then made by Wayne Swan to last us, at 72 cents per day, until his full and generous rise is enshrined in our pensions at 90 cents per day, paid fortnightly. In the light of the undoubted escalation of electricity rates, grocery costs, transport and fare resulting from a Carbon Tax, their 90 cents pittance of a pension increase is not only a heartless dismissal of pensioners, but an insult to their intelligence as well.

Don SimpsonTweed Heads, NSW

CPSA rejects the charge that it has reprinted, mindlessly or otherwise, a Labor Government press release. CPSA has merely

acknowledged that the Government has done what it said it would do in relation to carbon tax compensation. Carbon tax compensation achieves its aim if low and middle income households are not out of pocket. In this case, the Government has overcompensated low and middle income households by more than 60 per cent. The dollar amount is not going to make anyone rich, but it’s not going to make anyone poorer either. CPSA continues to hold that the full rate of pension is not an adequate level of income to ensure that pensioners are able to properly cover their cost of living. The carbon tax compensation, while covering the costs associated with the carbon tax, will not remedy the overall cost of living pressures many pensioners face. CPSA calls the

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I’d like to renew my Membership or join CPSA as a Member and enclose my individual Membership fee of $12 (Includes a free annual subscription to THE VOICE, valued at $25.00). I agree to be bound by the CPSA Constitution and uphold the Objectives and Policies of CPSA. I support the CPSA Objectives. I have not previously been expelled from CPSA or, if I have been expelled, I have attached a copy of my CPSA Executive exemption. Please send me information about my nearest Branch. I do not wish to join CPSA but would like to subscribe to THE VOICE (1 year—$25.00 incl. GST). I belong to an organisation and would like information about how we can become a Branch or an Affiliate of CPSA. (NB: Branches are covered by CPSA’s $10 million Public Liability Insurance). I wish to make a donation of $______ (All donations above $2 are tax deductible). Please send me information about THE VOICE gift subscriptions. I wish to make a bequest to CPSA in my Will. Please send me information.Name:_____________________________________________________________________________Address:__________________________________________________________________________________________________________________________State:_____________Postcode:__________Phone: ______________________________Email:_________________________________________Payment details (for credit card): Visa Mastercard Name on card:__________________________Card Number:___________________Expiry:_________Amount:______________________ Signature:_____________________________________________

Please send to: CPSA, Level 9, 28 Foveaux St, Surry Hills NSW 2010

Letters are personal views only and do not necessarily reflect CPSA policy. Ed.

November2011 www.cpsa.org.au 1800451488 3

Government to account on whichever issue has an impact on pensioners and other low-income earners.

THE VOICE, as our mouthpiece, lays this bare every month. On the issue of the pricing of carbon and emissions trading, CPSA has been critical of previous compensation proposals and of the compensation structure which sees some higher income earners and retirees receive considerably more compensation than others on lower incomes.

On the issue of compensation, it is fact that pensioners will receive more than the costs they will incur because of the carbon tax, hence “over compensation”. No reduction of the amount to dollars per week or cents per day will change this.

Some simple arithmetic will show that compensation amounts to 90 cents per day for singles (actually 92.6 cents) and the costs, treated in the same fashion, amount to 56 cents per day. In other words, compensation is 60% higher than costs.

C o m p e n s a t i o n being higher than costs is appropriate because it reflects the fact that households experience different costs and are not all able to change their habits.

Pensioners should be aware that Treasury estimates of household costs have taken into account the effects of a carbon price on all expenses. While electricity will see the largest increase, other areas will experience a considerably lower increase and the cost of some items will actually reduce.

Pensioners should also be aware that the cost of most necessities will likely rise regardless of a carbon tax. This is especially so for energy. Therefore,

compensation for these increases cannot be sought through higher compensation for the carbon tax.

It is worth reiterating that measures have been put in place to ensure that compensation keeps pace with rises in the price of carbon. If this turns out not to be the case, we will act accordingly.

We continue to call on Governments at all levels to ensure income support, rebates and other payments are adequate and equitable. Ed.

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THE VOICE, CPSA Level 9, 28 Foveaux StSurry Hills NSW 2010

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CPSA - who we are

CPSA was founded in 1931 in response to pension cuts.

CPSA is a non-profit, non-party-political membership association which serves pensioners of all ages, superannuants and low-income retirees.

The aim of CPSA is to improve the standard of living and well-being of its Members and constituents.

Never too old … or too youngBy Kate CrawfordThe Mosman Daily1 June 2011

AT aged 94, (CPSA Member) Hilda Thorburn of Lavender Bay is still making beautiful music on the mandolin. She plays with the Sydney Mandolin Orchestra and has been performing at its regular concerts, plus attending weekly rehearsals, since 1968. Ms Thorburn is only a tad older than the latest musician to join the orchestra - Jacques Emery, of Neutral Bay, who at age 14 is 80 years her junior. “Hilda’s fingers are as nimble as those of any of her fellow players,” club director Alan Ziegler says. Ms Thorburn says her eyesight and hearing are good, although she wishes she was 60 again. “Of course I can read music - you can’t play in an orchestra and not read music,” she says. “Age is no barrier - one can enjoy playing music for one’s whole life, from childhood through to old age.” Her only difficulty is

getting around because her legs are not what they used to be. “But there are 20 people in the orchestra and someone always gives me their arm to make it easier to get up on the stage,” she says. Ms Thorburn learnt to play the mandolin from the age of seven, encouraged by her parents in her native Czechoslovakia. In her early 20s she migrated first to New Zealand and then to Australia. “I had a busy life and did not play the mandolin for 40 years but then I joined the orchestra and it was strange, I could play the mandolin straight away,” she says. Ms Thorburn is very impressed with young Jacques. “He is very young - can you imagine - only 14 and he’s very good,” she says. Jacques joined the orchestra recently after his aunt Fiona Ziegler, who plays in both the mandolin orchestra and the Sydney Symphony Orchestra, alerted him to the mandolin players’ need for a double bass player. (Hilda produces the crossword in each edition of THE VOICE.)

Jacques Emery, 14, and Hilda Thorburn, 94, are the oldest and youngest musicians in the Mandolin Orchestra.


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Crosswordby Hilda Thorburn

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Across 1. All inclusive 8. Self-control 9. Parent10. Turning points11. Went away12. Tenant14. Spendthrifts17. Old name of a large Indian city20. Mews23. Verbal24. Seamstress25. Dwarfed tree26. Most restless27. Three-cornered (8-5)

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1. Small dwelling 2. Young unmarried women 3. Re-examine 4. Male cetacean (11, 4) 5. Deadens 6. Whole number 7. Forever13. Roman sun god15. Half-yearly terms16. Previous name of Tokyo18. Plane terminal19. Huge statues21. Collected, hoarded22. Saturday & Sunday24. Condescend

CPSA MerchandiseBadgesMembership : pin $4.50Membership: magnet $4.50Title Bar* + pendant $9.00Title Bar* $5.00Pendant $4.00(*except Welfare Officer $10.15Asst Soc. Sec.) $16.15CardsMembership card $0.10Waratah card $1.00

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Garden of Remembrance

It is with sorrow that the Patonga Branch of CPSA announce the passing on 4 October of our long serving Social Secretary, Betty Kircher. Betty served in this position for 25 years and included everyone’s birthdays. Last year she was awarded Life Membership in recognition of her dedication, and at her funeral received a CPSA Silver Bough Award.

~ Rest in Peace ~

Head Office News

Head Office News is sent to all Branch Secretaries, Presidents and Treasurers with the instruction to read it aloud to the Branch meeting. Every Branch Member is entitled to receive a copy. If you would like a copy, please call Head Office on 1800 451 488.

Volunteer insurance

Despite ongoing frustrations with the Head Office volunteer insurance provider, especially their recent four-fold increases in premiums to some Branches, they provide the most affordable policy we can find that does not reduce or cancel the payout if volunteers are over a certain age.

For several years, Head Office has continued to advocate for volunteer insurance to cover Branch Members. The insurer is now providing volunteer insurance at around $100 per Branch for up to seven Branch volunteers working at one time.

We recognise that this may still prove too expensive for some Branches but we have not yet found a better alternative. Contact Nikki at Head Office on 1800 451 488 for more information.

Condition of CPSA Membership

According to the NSW Associations Incorporation Act 2009 (Schedule 1, clause 11(1)(a) and Appendix 1 based on Clause 3(1)), it is a condition of your ongoing CPSA membership that you agree to comply with CPSA’s Constitution including Aims & Objectives.

If you have any questions or would like a copy of the Constitution, please call Head Office on 1800 451 488.


I WRITE to you about the proposals by the Productivity Commission for aged care reform. CPSA remains opposed to those measures proposed by the Commission that are based on including the family home in aged care means testing. Australians strive to achieve home ownership for most of their working lives. It gives them security and control over their lives. As people age, their biggest fear is to lose control over their lives. Eencumbrance of the family home following a protracted period of outright ownership is a powerful manifestation of loss of control. Eating into the equity in the family home to pay for aged care is therefore by definition at odds with the provision of quality aged care from both a clinical and a quality-of-life perspective. The Commission’s argument that no one has to sell their home to access aged care may be technically true, but it would be devastating for older Australians to see their home equity gradually evaporate. The issue of home equity depletion as a result of using home equity to pay for aged care and accommodation costs adversely affects partners and live-in informal carers of care recipients who have died. Surviving partners will typically be left with severely depleted (up to 50 per cent) home equity. As a result, they will be unable to move into age-proof housing if needed, and they will instead have no option but to move into a nursing home. After the death of a care recipient, live-in informal carers, after doing all the

hard work of caring, would lose their accommodation as soon as they needed to move, to take up a job, for example. At that time, the house belonging to the care recipient must be sold to settle the debt incurred to pay for aged care and any accommodation charges if the care recipient received some of their care in a nursing home. A different solution to the problem of broadening the funding base for aged care must be found. CPSA’s preference is for a social insurance scheme to fund aged care. At the centre of the Commission’s report is the calculation that, if the Government does not find other funding sources for aged care, its contribution will go from $10 billion now to $50 billion in 2050. While CPSA acknowledges that this would represent a significant increase in public spending on aged care, such a financial commitment is not unusual among developed countries currently. Australia could afford a social insurance scheme to fund aged care if the scheme is topped up during the baby boomer spike in demand for aged care. However, the Commission’s funding proposals as they stand are, in themselves, inequitable and contradictory and would generate significant adverse unintended consequences. Even if the Commission’s funding proposals were to be adopted, they would require significant amendments. The Commission proposes a flat lifetime limit on care costs at $60,000. It is difficult to understand why there is no attempt to set this limit relative to the value of a

person’s assets. This is particularly so given the Commission’s focus on drawing on home equity as a source of aged care funding. Obviously, $60,000 out of $200,000 worth of home equity is proportionally much more than $60,000 out of $2 million worth of home equity. The effect of a flat limit on care costs would be regressive. CPSA is concerned about the Commission’s proposal to deregulate accommodation charges and nursing home places on the basis that this will facilitate competition, accommodation improvements and consumer choice. Firstly, it demonstrates an inconsistency of approach by the Commission to apply the argument of deregulation leading to better consumer outcomes in the case of accommodation pricing, but to not apply it to the pricing of care. If deregulation on the accommodation side will benefit the consumer, why would it not benefit the consumer on the care side? Secondly, many providers of residential aged care push the envelope when setting accommodation bonds, which can be as high as $1 million. It is very likely that they will be pushing the envelope with just as much enthusiasm when setting accommodation charges, which, in the majority of cases, consumers would pay out of their home equity. While the Commission proposes that accommodation charges be monitored, it is unclear what would happen if monitoring shows that nursing homes are behaving in relation to accommodation charges as

they are behaving now in relation to accommodation bonds. Another concern is that people who need aged care would put off getting it to avoid using their home equity under the proposed Australian Aged Care Home Credit Scheme. The type of aged care people would forego would be home maintenance, house cleaning, help with shopping and low level personal care. These are all currently provided under the Home and Community Care programme, which will transfer to the federal jurisdiction. The consequence of this would be that, inevitably, people will neglect their health and home environment and this would shorten the time they could remain living independently. Again, people would end up, unnecessarily or prematurely, living in a nursing home. CPSA is also concerned that the proposed Australian Aged Care Home Credit Scheme — where people do not avoid it or where they can no longer avoid it — will lead to inadequate home adaptations, i.e. adaptations that will not maximise the period that people can be cared for at home, and that this will lead to unnecessary and premature nursing home admissions. The vast majority of Australian housing stock has not been designed to cater for the reduced mobility associated with disability and ageing. It is possible to retrofit existing housing stock to a certain extent, but not generally to the extent that it will keep people living independently until a clinical need for them to move into a

AnopenlettertoourFederalPoliticians

Continued page 7

RegardingtheProductivityCommission’sreport:CaringforOlderAustralians


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Older driver testing: stop-start reform in WA and TAS

WITH Tasmania’s abolition of on-road tests on 8 October, New South Wales and Western Australia are now the only two out of eight Australian states and territories where older drivers continue to be harassed by officialdom.

Never mind that most people know when to hand in their licence. Never mind that people change their driving habits to make sure they don’t have accidents. In short, never mind that older people are simply the safest drivers around. CPSA has always said that older driver testing is age discrimination pure and

simple. The Tasmanian

A n t i - D i s c r i m i n a t i o n Commissioner agrees and wrote a report saying so.

It is an unfortunate feature of anti-discrimination legislation everywhere in Australia that it provides for ‘exemptions’ which allow Governments and government departments to do what it is illegal for everyone else: discriminate unfairly.

Tasmania is no exception, but the A n t i - D i s c r i m i n a t i o n Commissioner there decided to suggest maybe the Tasmanian Government should stop picking on older drivers.

Amazingly, the Tasmanian Government listened. A review of the older driver licensing system in Tasmania was conducted. Surprise, surprise, it found that older drivers are not a road safety problem and are not over-represented

in crash statistics. Unfortunately, medical assessments for drivers aged 75 and over will continue. Why? That’s anybody’s guess. The Government’s own review recommended it be abolished along with on-road testing and for the same reason: it unfairly discriminates against older drivers. And if you recently sat a road test and failed, bad luck! You will need to apply for a learner’s licence as if you were 17 years old again. But Tasmanians over 85 still able to drive won’t have to worry whether they will pass the next road test and won’t be unnecessarily kicked off the road anymore. And that is a lot better than what happens to over-85s in New South Wales and Western Australia, where on-road tests remain mandatory. In New South Wales it’s every two years, in Western Australia every year. Western Australia

nursing home arises. The concern is that, under the Commission’s proposals, people needing to move into age-proof housing will have used a significant part of their home equity for home adaptations and care costs to the extent that they can no longer afford to buy into age-proof accommodation. Then their only option is to move into a nursing home, unnecessarily or prematurely from a clinical point of view, with loss of independence and control over their lives. Even now, with their home equity still intact, older Australians are finding it very hard to change into age-proof housing given significant transfer costs, the lack of supply and the lack

of regulatory instruments to ensure adequate supply. This points to a major flaw in the Commission’s report: it has ignored the issue of housing and assumed that broadening the aged care funding base and allowing aged care funding to flow to the retrofitting of existing houses would enable people to keep out of nursing homes. To an extent, that will be the effect. But crucially, the effect will not be that the majority of people who do not clinically need to be in a nursing home will continue to live independently. In a perverse way, the Commission would achieve the opposite of what it has set out to do. The measures it proposes will not allow people to stay in their homes

for as long as they can. Those measures will instead entrench that last bastion of institutionalised care, the nursing home. While CPSA is opposed to any measure that includes the family home in aged care means testing, it finds it regrettable that the Commission has not seen fit to recommend portability as a feature of the Australian Aged Care Home Credit Scheme to mitigate the problem of home equity depletion. Portability (the debt against a principal residence used as collateral being transferable to a newly-purchased principal residence following the sale of the former principal residence) would mean that

the full value of the home could continue to be used by older Australians to move into age-proof housing at any point during the time a person was receiving care. It would allow surviving partners to relocate after the death of their spouse. It would allow live-in informal carers to relocate using the full value of the principal residence following the death of the person they cared for. CPSA intends to work with the Australian Parliament to ensure older Australians are not disadvantaged as a result of the forthcoming aged care reform measures.

Yours sincerely,Bob Jay, CPSA Secretary

From page 5


has just announced that it is getting rid of annual medical testing for older drivers. Not all of it, mind you. Medical testing for those aged between 75 and 79 has been abolished, but once you turn 80, you’ll still have to undergo an annual medical test. This is what WA Treasurer Troy Buswell said: “Given the ageing population, the state government is changing the regulations to lessen the unjustified imposition on senior drivers as well as the health system.” Well said, Treasurer, but why aren’t medical testing from age 80 and road tests from age 85 unjustified impositions? Here’s the brutal truth:

Older driver testing is unnecessary, discriminatory and expensive to the taxpayer. CPSA calls on the NSW Government to honour its election commitment and abolish older driver testing. Road safety won’t suffer and it’s fairer and cheaper all around.

Aussie prescriptions among world’s most expensiveAustralia is one of the world’s most expensive countries when it comes to prescription medicines, a University of Western Australia study shows. Researchers looked at the annual out-of-pocket expenses for prescription drugs across 14 OECD countries in 2005, when the most complete data was available. Australia ranked fourth among the 14 OECD nations with universal pharmaceutical subsidy schemes, with patients paying an average $US84 a year for their prescriptions.

People in Finland faced the highest costs at $US120, followed by the French ($US103) and those in the Slovak Republic ($US95). Lead researcher Dr Anna Kemp, of the university’s Centre for Health Services Research, said if prescription charges in Australia increased much more, they could become unaffordable for many, putting people’s health at risk. “We understand this is a massive area of health expenditure and everyone is trying to work out what the community can afford and what patients can afford, but we are worried that the balance has tipped now to the point that its hurting patients,” she told AAP. “What we would like to see is the government not introduce more large increases in costs for patients. “We understand that things need to move with inflation but any large increases in [the PBS] co-payment or safety net are likely to result in harm for patients and make them likely to cut down on their use and we already know that has been happening for some people.” Medication costs for many people leapt 24 per cent in 2005 when the Federal Government increased the amount patients paid for their prescriptions at the pharmacy under the PBS co-payment scheme. Since 2005, the co-payment general patients have to make towards their PBS-subsidised prescriptions has risen by $5.60 to $34.20 and by $1 to $5.60 for concession card holders. The Government has also raised the spending thresholds people have to

meet before they qualify for extra discounts. Previous studies have found a drop in the use of prescription drugs following price hikes. Dr Kemp said Australians could be paying even more for their prescription drugs because of a rise in the number of medications - including antibiotics, antidepressants and oral contraceptives - which no longer qualify for PBS subsidies. When taking those medications into account, Australians were paying at least $134 a year for their prescriptions, she said.

Blackmores and Pharmacy Guild drop endorsement arrangementCOMMUNITY anger has put an end to a deal between supplements giant Blackmores and the Pharmacy Guild of Australia which would have seen pharmacists recommending vitamin and dietary supplements with prescription medicines.

The Guild, which represents 94 per cent of Australia’s 5,200 pharmacies, had reached an agreement with Blackmores to recommend a range of their products to patients when they picked up prescriptions for antibiotics, cholesterol and high blood pressure medications.

The deal was immediately met with anger and concern from leading health organisations including the Pharmacist Coalition for Health Reform (PCHR), the Australian Medical Association and the National Prescribing Service (NPS), which questioned whether the Guild was putting its commercial interest ahead of its role as a health service provider.

The concerns were raised because of the lack of evidence about the benefits of using dietary or vitamin supplements when taking prescription medications.

Dr Geraldine Moses, a drug safety researcher, told Fairfax’s Julia Medew that there was evidence that the more drugs a person took, the more likely they were to experience complications.

She said that it was incorrect to presume that replenishing nutrients that were reduced by prescription medications was the right thing to do.

Blackmores were “presuming that because levels go down, we should make them come back up again, but for all we know, those levels going down is part of the mechanism of the drug,” she said.

News of the partnership also prompted the NPS to review the evidence for the supplements that were to be promoted.

The NPS states on its website that “People shouldn’t take complementary medicines just because their prescription medicines could cause nutritional deficiencies or side effects.

“Adding an additional medicine should never be done lightly, especially if you’re already on multiple medicines — it adds to your financial cost, and might cause side effects or medicine interactions or even affect how well you take your other medicines”.

The financial motivations behind the deal for the Pharmacy Guild were laid bare by one supporter of the move, the Commonwealth Bank (CBA).

CBA analyst Natalie Kelly told The Australian that the move was set to increase

CPSACampaigns


pharmacists’ non-dispensary sales at a time of reforms to the Pharmaceutical Benefits Scheme and greater price transparency.

In other words, the deal would have allowed pharmacists to make money at a time when their profits were under pressure in other areas.

The Guild said the decision to abandon the deal had been made “in view of the strong level of public concern about the proposal”.

“The idea that community pharmacists would take part in commercial ‘upselling’ without regard to their professional standards is offensive to our profession and rejected by the guild’.’

The PCHR, which represents 20,000 pharmacists, welcomed the decision.

“Our members were extremely unhappy with the deal, with a Pharmacist Coalition poll of close to 500 people showing that 94% disagreed with the Blackmores deal and believed it undermined the professionalism of pharmacists,” spokeswoman Yvonne Allinson said.

Despite the resolution of this issue, it’s not the first time pharmacies have come in for criticism over a perceived conflict of interest between their commercial aims and health care role.

Many pharmacies sell weight-loss shakes, supplements and bars despite strong and consistent evidence showing that they provide no benefit or even lead to weight gain.

At least people can now be assured that when they go to the pharmacy to pick up their prescriptions, the prescription will be all that they’ll be getting.

Tax Summit hears of unemployment poverty trapONE OF the highlights from the Oakeshott-initiated tax summit last month was that discussion about how low the rate of Newstart Allowance is, sitting at $486.80 a fortnight for singles and $878.80 a fortnight for couples combined. A number of organisations attending the summit, including Australian Council of Social Services (ACOSS) and Catholic Social Services, discussed how the rate was providing no security whatsoever but rather putting and keeping people in poverty. Professor Peter Whiteford, from the Social Policy Research Centre at the University of NSW, told the summit, “If you had an unemployment payment and rent assistance, after you paid your rent you would have $16.50 a day for everything else and looking for work”. In other words, Newstart Allowance was actually making it more difficult for people on the payment to get back into the workforce. With just $16.50 a day in hand, there’s not enough money to pay for any transport costs and clothing needed for finding work and

appearing presentable for job applications and interviews. There’s also no way of affording any other major costs which may arise, such as in health. For example, THE VOICE has written on numerous occasions about the impact of unaffordable dental treatment, where people aren’t able to leave their home – let alone look for work – because of the pain and appearance of the dental problem. If we consider that the pension is low, then how should we feel about the widening gap between the pension and Newstart? Currently, recipients of Newstart receive 65% of the pension but if nothing is changed, by the middle of the century it will only pay one third. This is because Newstart is only indexed to the consumer price index (CPI) whereas the pension has the better of two indices – CPI the Pensioner and Beneficiary Living Cost Index – and is benchmarked to 27.7 of male total average weekly earnings. There is popular belief within the community that the rate of pay on Newstart isn’t such a big deal because most people don’t stay on the payment for long and quickly

get themselves back in the workforce. Unfortunately, the reality is very different, especially for older people out of work. While those aged 50 and over are more likely to stay in the workforce, those that do become unemployed find it extremely difficult to find work again.

Their average time spent on Newstart is 70 weeks, double that of their younger counterparts.

Many people find it extremely difficult to get work because of age and disability discrimination and because of changes in our economy, such as the reduction of manufacturing and because of worldwide economic crises.

The Newstart rate of pay is therefore punishing many people who find themselves out of work through no fault of their own.

ACOSS chief executive Dr Cassandra Goldie said it would cost around $1 billion to fund an increase to Newstart of $50 a week.

This would reduce the gap between the pension and Newstart to about $100 a week and would ensure people would not be in desperate poverty when looking for work.

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Housing affordability under the spotlightANOTHER of the major topics raised at last month’s tax forum was the issue of housing affordability and the tax system’s role in the crisis we have today. Housing costs have a profound effect on our ability to meet other living expenses, especially for pensioners and other low-income earners and even older Australians who have lived at the same residence for decades. We must also be concerned about housing costs for those in work and with families because of the potential to impact their quality of life now and into retirement. Whether purchasing or renting, housing has become rapidly more expensive over the last 10-15 years. Median house prices have now risen to around seven to eight times average incomes. With prices on the up and up, the number of people able to purchase a dwelling has reduced and the number of people still paying off their home by age pension age has increased. This can be seen in the two graphs below. (Source: Australian Bureau of Statistics.)

This situation creates some major problems. If people are still paying off their homes when they’re nearing or in retirement, they’re going to make use of

their superannuation to pay off their debts.

It would mean less money in retirement and more reliance on the Age Pension. This wouldn’t be good for either the individual or the Government.

Renting would not be such a big deal if we had stable rents and long-term security of tenure. Unfortunately, this isn’t the case in Australia.

Tenants get priced out of the area in which they have lived for a long time or the landlord sells up and the tenant is forced to move. This creates issues of dislocation and increases personal costs in areas such as transport and health.

So how can we address the situation?

The Australian Government has certainly made some steps in the right direction including the introduction of the national rental affordability scheme and the significant boost to social housing stock through the stimulus package.

But other decisions are either not working or even working against affordability.

In this category are initiatives such as the First Home Owners Grant, which gives money to people for the purchase of their first home.

Many economists and housing experts argue that by giving the money, the Government is helping increase demand, which

inflates prices. And this measure

doesn’t come cheap. Over $9 billion has been spent on the FHOG since its introduction, money which could have been spent on more public housing stock.

Changes to the tax treatment of negative gearing and capital gains which would affect investment properties were also receommended in the Henry Tax Review.

The argument goes that current taxation encourages speculation rather than long term investment.

Investors go into heavy debt with the expectation that house prices will continue to grow, while many of their costs are used to reduce their tax liability.

The Grattan Institute’s Saul Eslake recently commented that 92% of investors in rental properties purchased established properties. Negative gearing, therefore, did little to increase housing supply but helped increase house prices and rent because investors competed with other home buyers on existing stock.

The Henry Tax Review recommended a 40% discount for all savings, residential income and losses and capital gains.

This would encourage long term investment because the tax benefit would be greatest when money was being made out of the

property, not (as currently) when it was making heavy losses.

Others argue that negative gearing could be limited to investment in new housing to increase stock.

The Henry Tax Review also called for state governments to make some tax changes, such as removing stamp duty and changing land taxes.

For many older people, the costs of stamp duty make moving into more appropriate, age-friendly or smaller homes unaffordable.

In NSW, older home buyers don’t have to pay stamp duty if they buy an off-the-plan home.

But this is too limited to help people move. New dwellings are usually built well away from where people currently live and are sometimes as expensive as their current home.

CPSA has called on the NSW Government to at least exempt stamp duty for older people who are downsizing to any property purchased.

Although these issues were discussed at the tax forum, we will have to wait and see whether or not the Australian Government (and for that matter state governments) announce any tax changes that will lead to greater affordability.

Certainly, greater constructive debate within the community will help sift through which of these policies would work best and be most equitable.

Though just as it seems landlords currently hold great political sway, if we wait long enough, there may just be enough renters to become a political force in their own right.

And then the Government, whoever it will be, won’t have much choice.

CPSACampaigns


INCOMESECURITY

CentrelinkAge Pension 13 23 00

DSP/Carer benefits 13 27 17Family Assistance 13 61 50

Welfare Rights CentreInfo on Government pensions

and other benefits(02) 9211 53001800 226 028

National Information Centre on Retirement InvestmentsAnything for the small investor and people wondering about

super or how to invest1800 020 110

Financial Ombudsman Services

Complaints about banking, insurance, super, financial

planning 1300 780 808

Industry Fund FinancialPlanning

1300 138 848

Australian Taxation OfficeSuper/Lost super 13 10 20

Personal tax 13 28 61

British Pensions inAustralia

Assistance in claiming the British Pension(02) 9521 79641300 308 353

No Interest Loans Scheme1800 509 994

RIGHTS

Australian Human Rights Commission

Complaints about discrimination and

harassment 1300 369 711

Commonwealth Ombudsman

Complaints about Federal Government departments and

agencies 1300 362 072

NSW Ombudsman’s Office Complaints about NSW Government agencies

1800 451 524

NSW Trustee and Guardian1300 360 466

Guardianship TribunalFinancial management orders

for people with decision-making disabilities

1800 463 928

Seniors Information Service13 12 44

Consumer Trader & Tenancy Tribunal

Tenancy, trader and consumer disputes13 32 20

Energy & Water Ombudsman (EWON)

Complaints about all NSW electricity/gas retailers and Sydney and Hunter Water

1800 246 545

TelecommunicationsIndustry Ombudsman

Phone and internet complaints 1800 062 058

GOODSANDSERVICE

Telstra Pensioner DiscountFor basic plans only

1800 353 652

NSW Seniors CardDiscounts on goods and services 1300 364 758

NSW Companion CardFree event admission for

companions of eligible people with a disability 1800 893 044

IPART Energy ComparisonCalculator 1300 136 888

HEAlTHANDCARE

Commonwealth CareLinkInfo about aged and

community care 1800 052 222

Office of Hearing ServicesSubsidised hearing aids

1800 500 726

Dementia Helpline1800 100 500

Single-gender Ward Hotline For patients who wish

to be placed in a single-gender ward after 24hrs

hospitalisation1800 700 830

VisionCare NSWSubsidised spectacles

(02) 9344 4122 1800 806 851

Home Care Service NSWDomestic assistance, respite

and personal care 1800 044 043

Rape Crisis Centre24hours/7days 1800 424 017

Health Care Complaints Commission

NSW only (02) 9219 74441800 043 159

Carers NSWInformation, support

1800 242 636Emergency respite

1800 059 059

Aged care information lineResidential and community

aged care information1800 200 422

Aged Care Complaints Scheme

Complaints about residential and community aged care

1800 550 552

LifelineMental health support,

suicide prevention 13 11 14

Beyond BlueDepression and anxiety

information 1300 224 636

Public Dental Health Services

Call NSW Health for details(02) 9391 90001800 639 398

Medicare Enhanced Primary Care Dental Scheme

Call Medicare for details132 011

People with DisabilitiesAdvice for people with a

disability(02) 9370 31001800 422 016

Exit AustraliaInformation about euthanasia

1300 103 948

Dying with Dignity NSW(02) 9212 4782

Australian Men’s Shed

Association 1300 550 009

HOUSING

CPSA’s Older Persons Tenants’ Service (OPTS)

Individual advocacy(02) 9566 11201800 13 13 10

CPSA’s Park and Village Service (PAVS)

Individual advocacy for caravan parks and

manufactured homes villages(02) 9566 10101800 177 688

NSW Department of Housing

Info and applications1300 468 746

Tenants Advice LineMondays 3-6pm1800 251 101

lEGAl

The Aged-care Rights Service including Older Persons’ Legal ServiceAged care and retirement

village advocacy and information and legal advice

for older people.(02) 9281 36001800 424 079

Law AccessReferrals for legal help

1300 888 529

The Law SocietySolicitor and legal firm

referrals(02) 9926 03001800 422 713

Community Justice Centres Dispute resolution services for minor matters 9228 7455

Domestic Violence Advocacy Service

1800 200 526

Family Relationship Centres Relationship and separation information 1800 050 321

Office of the Legal Services Commissioner

Complaints about lawyers and conveyancers 1800 242 958

CPSAInformationDirectory


Giggle Page

CrosswordSolutionsCrosswordonpage4

Daffeydefinitions

Afford – Not a Holden.Autobiography – Life story of an automobile.Bacteria – Rear entrance of a cafeteria.Barbeque – Line up for a haircut.Dogma – Mother of pups.Endorse – Last horse past the finish line.Explain – Eggs served with no trimmingsHorse doctor – GP with a sore throat.Divine – What the grapes grow on.Paratrooper – A drop-out.

With thanks to Iris Ingles

Two flies

Two flies land on the bald head of an old man. Says one fly: “Remember how we used to play hide-and-seek here?”

Blonde joke

Q: Why does a blonde put empty bottles in the fridge for the party?A: For guests that aren’t thirsty.

0 and 8

Says the eight to the zero: “You’re fat.” Says the zero to the eight: “Borrow your belt?”

Yellow

Q: What is yellow but you can’t see it?A: A banana around a blind corner.

Q: What is yellow and can’t see you?A: A blind banana.

Threeguysandacar

Three guys were driving in the middle of the desert when the car stopped.One said, “Alright get everything you need.” So one guy got the radiator and the other guy said, “Why did you get the radiator?” “Because when I get thirsty I can drink the water.”Then the other guy took the seat and one of them said, “Why did you get the seat?” He said, “So I can sit on it. When I get exhausted I can sit on it.” The third guy took the door so one guy said, “Why did you take the door?” The third guy said, “So if I get hot I can wind the window down.”

Jordan Yap (10), Eastwood

life’sabeach

Playing cards in an alcovefrom the Powerhouse Museum Collection

Documents

THE VOICE - November 2011