As reported in the SMH, there has been mounting speculation in recent days that the Federal Government will reduce the pension of so called ‘wealthy pensioners’ in order to fund the $30 per week increase to single, full pensioners. These pensioners typically own their own home and have other additional sources of income.
According to the report, a million part-pensioners stand to have their payments reduced to cover the cost of an increase in the pension paid to single, poorer retirees. This will be achieved by changing the taper rate, or income threshold, at which the age pension begins to decline. Senior officials from the Department of Family and Community Services are believed to be in favour of amending the system to more effectively target pensioners in real need, particularly those in rented accommodation with little or no assets.
The chief executive of National Seniors Australia, Michael O’Neill, said the first priority of the pension system needed to be “making sure the most vulnerable are looked after”.