A fair and flexible safety net

Lance Feeney on the pension review.

Concerns

Rises in the cost of living have led to concerns that people on low incomes – particularly those dependent on the maximum rate of pension with few assets – may be finding it harder to make ends meet. The recent Senate Committee inquiry into the cost of living pressures on older Australians found that people on low incomes are disproportionally affected by rises in the cost of petrol, food, medical care and rental accommodation. It also found the maximum rate of pension may be insufficient to maintain a basic, decent standard of living. Those most at risk of financial stress are single pensioners receiving the maximum rate of pension and living in private rental accommodation. The committee acknowledged that certain groups are more likely to be wholly reliant on pensions, including older women, people with severe disability or chronic illness, and those whose earning ability has been limited by their caring responsibilities.

Australian Federal Government’s Review of Disability Support Pension, Aged Pension, and Carer’s Payment

On 15 May 2008, Jenny Macklin MP announced a review into measures to strengthen the financial security of seniors, carers and people with disability. This would include a review of the:

• Aged Pension
• Carer Payment
• Disability Support Pension (DSP)

The Pension Review – what will it do?

The Pension Review will investigate:

• Appropriate levels of income support and allowances
• Frequency of payments and the structure and payments of concessions and other entitlements for Aged Pension, DSP and Carer Payment recipients
• Carefully examine options for reforming the pension system to ensure that any changes are sustainable in the long term

Response

Positive Life NSW welcomed this review. We understand the review has particular significance for people with HIV who receive a pension or part-pension, who are living with a partner who is receiving a pension or part-pension, or who may need to apply for a pension in the future.

A meeting was immediately arranged with The National Association of People Living with HIV/AIDS (NAPWA – the peak PLWHA organisation in Australia) and AFAO, to devise a coordinated response. We agreed that delegates from each state and territory would attend the public consultations around Australia and draw attention to the multiple issues facing people with HIV. NAPWA agreed to prepare a written submission and, assisted by State and Territory PLWHA groups (including Positive Life NSW), identified relevant issues, collected and documented case studies, and sourced statistical data for inclusion in the report.

Public Consultation

The public consultation in NSW was very well attended and many people spoke about their financial hardship and difficulty surviving on the Aged Pension. The Cancer Council, people with intellectual disabilities and veterans were all represented, but to my surprise, I was the only one who spoke about the issues faced by people with HIV/AIDS who receive the DSP, the Aged Pension or the Carer Payment. At the conclusion of the meeting, Dr Jeff Harmer (who has been appointed to lead the review) made specific reference in his closing remarks to the points I had raised, noting specific health related costs and other issues faced by people with HIV and other chronic health conditions and disabilities – a pleasing outcome.

Submission

The written submission was completed by the consultant Ronald Woods and submitted on 26 September 2008. It made the following recommendations which I have summarised. (Full version of the submission can be found on the NAPWA website: www.napwa.org.au [1])

1. In view of the variable and episodic course of HIV illness in an ageing population, people with HIV may have to move in and out of paid employment and the welfare system, as the state of their health demands. NAPWA supports any measures that might strengthen the financial security of seniors, carers and people with disabilities living with chronic illness and making the pension system more flexible.
2. The ability of people with chronic illness such as HIV/AIDS to maintain their health and well-being is severely compromised by financial hardship and the stresses associated with an ongoing daily struggle to make ends meet. NAPWA supports any moves to increase the base rate of pensions, with consideration to making the single rate of pension closer to 70 percent of the combined couple rate.
3. NAPWA supports any improvements to public health, public housing and public transport provisions that would represent concrete benefits to people reliant on income support.
4. NAPWA supports a range of supplementary payments and concessions to people reliant upon income support. Consideration could be given to ensuring greater uptake of these entitlements through the provision of public information and easing of the administrative burden associated with concessions such as the PBS Safety Net.
5. NAPWA supports any moves that make it easier for people with chronic illness such as HIV to find and keep work and reduce their dependency upon income support. The health care benefits implicit in receiving the DSP could be retained for those engaged in work, who are on low incomes.

Further information

If you would like to talk with me about any of the issues or require further information, contact:
Lance Feeney
Systemic Advocacy
Positive Life NSW
Call: (02) 9361 6011
Email: lancef@positivelife.org.au [2]