Federal Government announces pension revamp


Many Australian pensioners will be finding themselves better off after January 2017.

The Federal Government says changes to the aged pension in next week’s budget will take from the rich and give to the poor.

Laura Dixon reports.

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The government has announced a revamp to the aged pension that will see about 172,000 pensioners 30 dollars better off each fortnight.

To do it, the government is reducing the pension threshold by more than 300,000 dollars.

Scott Morrison, Social Services Minister: “This is a fairer way to have a more sustainable pension.”

About 91,000 well-off retirees will no longer receive a part pension and 236,000 will have their pension decreased.

But the government says nine out of 10 pensioners will either be better off or not effected at all.

Tony Abbott, Prime Minister: “This idea that you should be a, that you be a liquid asset millionaire and still be a part pensioner, I think is problematic.”

About 50,000 retirees who were on the part pension will now get the full amount.

Today’s announcement is a welcome change from the previous budget’s policy which would have hindered pension increases for four million Australians.

Ian Yates, Council on the Ageing: “There are 3.7 million pensioners who now know that their pension won’t be going down six months by six months.”

The Prime Minister says it’s an example of what we can expect in the coming budget.

Laura Dixon, QUT News.