Return to Council on the Ageing (COTA) Home Page COTA Media releases January - June 2001

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3 Federal budget responses:
COTA wins bonus for pensioners, 22 May
Welcome measure in health and aged care, 22 May
Welfare reform: COTA efforts for older workers pay off, 22 May

Full age pensioners struggling most: must be priority for Budget assistance, 2 May
Go easy on older people in May budget, 23 April
Great bank news- ANZ free over the counter service for older customers, 20 April
Government must tackle rising tide of poverty amongst the aged, 27 March
Economic benefits of mature age workers proven in new report say Australia's largest seniors organisations, 21 March
Discrimination against older workers will mean economic slowdown for Australia, 20 March
Government trips up marketing of GST to pensioners: 2% clawback plan goes off the rails, 26 February
Aged care residents: a better deal under Labor? 12 February
Telstra way out of line on bill payments for older Australians, 18 January

July - December 2001

22 May 2001

COTA WINS BONUS FOR PENSIONERS

The Council on the Ageing welcomed the Government's commitment to provide a pensioner bonus of $300.

"COTA was the only seniors organisation actively arguing for this in the lead up to the Budget and we are very pleased that the Government has taken our advice on providing some assistance for pensioners with large one-off costs that they are unable to save for on the age pension," said Mr Denys Correll, COTA's national executive director.

Our specific recommendation from our Budget submission was:

Recommendation 1.1

As a matter of urgency, the Government must review the position of older people who have little or no other income than the Age Pension. COTA seeks the Government's consideration of a means-tested periodic supplementation of the income of such people. A low income pensioner supplement should be set at a minimum of $250 to a maximum of $500 per annum.

"The bonus will help people with such expenses as repairs and maintenance or to buy something that they need – items that are often difficult for people to save for.

"The GST has hit pensioners harder than the Government's original modelling suggested. We have had heard too many stories of hardship in recent months to doubt the seriousness of the situation.

"The Government has looked after the interests of self-funded retirees in this budget through the increase in the tax-free threshold and the more generous income and assets test which will allow them to claim a part pension with full access to concessions.

"Clearly, the cost of living has risen considerably and retirees living standards have fallen. The Government has heeded the signs," concluded Mr Correll.

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22 May 2001

Welcome measures in health and aged care

The Government has delivered a raft of useful measures in health and aged care that will benefit older Australians, says the Council on the Ageing in responding to the Federal Budget. "We are pleased to see the Government consolidating its policies in aged care and continue solid growth funding in important programs", said Mr Denys Correll, national executive director. He commended:

We are pleased to see the Government's continuing commitment to assist people to remain in their own homes..

These are critical to ensuring the integrity of the system and the highest possible standards for the most vulnerable in the community

The Government has made a useful start with $5 million, but we believe more will be needed.

In health, Council on the Ageing has commended:

Unsafe use of medicines is a particularly important issue for older Australian and COTA has been active in running programs to provide education about this.

Older people suffer higher rates of depression and mental illness than is recognised. We look forward to the additional funding in this area.

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22 May 2001

WELFARE REFORM: COTA efforts for older workers pay off

The Council on the Ageing today welcomed the raft of measures in the welfare reform package which promise a better deal for older workers.

"COTA has been the most influential group in Australia in developing a policy agenda on the issue of mature age employment over the past 3 years and today we are seeing the fruits of our detailed policy and advocacy work on this issue as well as Australia's first major conference on the issue late in 1999," said Mr Denys Correll, national executive director.

"The package includes a large number of measures which we have told the Government are essential to improving employment opportunities for people in the broad 50 to 64 age group in view of the fact that 33 per cent of the age group rely on a social security payment and 46 per cent do not have paid employment.

"COTA has advocated the following of the policies which are a key part of the welfare reform package:

"COTA also believes that the measures will need good evaluation and monitoring to ensure that they are achieving their target of reducing unemployment, discouragement and early retirement amongst the group roughly aged 50-64.

"We do have concerns about the phasing out of Mature Age Allowance in 2003. We would have preferred if this measure was delayed until employment opportunities for people over 60 were demonstrably better than they are now.

"Australia's workforce is rapidly ageing in line with population ageing. The package adds up to being a great advance in coming to terms with this reality. We look forward to the Government's ongoing commitment to the issues," concluded Mr Correll.

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2 May 2001

FULL AGE PENSIONERS STRUGGLING MOST:
MUST BE PRIORITY FOR BUDGET ASSISTANCE

The Council on the Ageing said today that older people solely reliant on the Age Pension should be the priority for any budget measures. COTA was responding to the speculation that the Government was planning to put in place additional assistance measures for self-funded retirees in the budget.

"COTA has no doubt that the GST is placing additional pressures on all older people on fixed incomes. But in a tight Budget context it is critical that government assistance is targetted to those most in need," said Mr Denys Correll, COTA's national executive director.

"The older people who most need help are those with little or no private income but the Age Pension. We are convinced by our members and other older people contacting us that this group is struggling the most.

"For them, it is not a question of going without discretionary goods and services but a matter of not being able to pay for essential repairs or have enough for the groceries.

"COTA thinks the best option would be to increase the pension by 2 per cent which would bring the GST compensation up to 4 per cent as pensioners expected in the tax reform package. At the minimum, the Government should consider an annual bonus of between $250 and $500 per year for full pensioners depending on their level of private income.

"COTA rejects the claim of Senator Vanstone - Minister for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women - that self-funded retirees are more worthy of assistance because they have saved for their own retirement. The amount people are able to save throughout the lifetime is most obviously conditional on how much they have earned.

"It is not helpful for the Minister to imply that people on the Age Pension are less deserving of assistance because they were not able to earn enough to fund their own retirement when they were working or because they were homemakers and carers.

"Relatively few amongst the current retired population had access to superannuation. Women make up near to two thirds of all age pensioners and had the double disadvantage of low workforce participation and poor access to super.

"We should keep in mind that retirees can receive a part pension and the attached fringe benefits when they have a private income of up to $562 per week ($29,224 per year) for a single person or $940 per week ($48,880 per year) for a couple.

"In addition, retirees can receive a part pension even if they have substantial assets other than the family home. A single person can still qualify for the pension with non-home assets up to $269,250. A couple can have non-home assets up to $415,500 and still qualify for a part pension.

"The full age pension is around $200 per week ($10,000 per year) for a single person or $335 per week ($17,420 per year) for a couple. There are around 165,000 pensioners who have no private income to supplement this and we believe they really do not manage on this income at all.

"The Government needs to ensure that any funds available in the Budget to help older people are delivered fairly and to those most in need. There is no question that full age pensioners must be the priority," concluded Mr Correll.

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23 April 2001

Go easy on older people in May Budget - COTA

The Council on the Ageing (COTA) today cautioned the Federal Government on proposals that could increase the cost of living for some groups of older people in the May Budget. COTA was commenting in the wake of leaked proposals to increase the costs of diagnostic agents and syringes for people with diabetes, to reduce access to cholesterol lowering drugs and reduced rebates for some specialist medical services.

"COTA has started receiving a steady stream of calls recently from older people who are struggling to manage on a fixed income, especially the Age Pension," said Mr Denys Correll, COTA's national executive director.

"There are a number of reasons - increased user pays, higher bank fees, the GST and higher petrol prices as well as the removal of a number of commonly used medications from the Pharmaceutical Benefits Scheme are together making life more difficult for many older people.

"Older people are most likely to be affected by Budget cuts. We know that there is a lot of sensitivity already amongst older people to increased prices for medications and medical services. We are worried about the effect of possible changes on low income older people.

"We agree with the Government that there needs to be careful monitoring of expenditure in the health area to ensure funds are spent to the greatest benefit. However, it is also important to protect vulnerable, low income people from the impact of cuts.

"COTA calls on the Government to implement a range of anti-poverty measures for older Australians in the May Budget. In particular we seek help for people who have no or little other income than the Age Pension - we think an annual supplement of between $250 and $500 per year for this group would be of significant help," concluded Mr Correll.

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20 April 2001

Great bank news - ANZ free over the counter service
for older customers

Council on the Ageing (COTA) applauds ANZ's announcement today to offer unlimited fee-free over the counter transactions for customers aged 60 and over from their ANZ personal transaction accounts from July 1. Deeming accounts are included. COTA also welcomes ANZ's proposed Customer Charter and the appointment of a Customer Advocate.

"COTA has long argued for older people to be exempt from penalties for not using electronic banking, said Mr Denys Correll, COTA's national executive director.

"While more and more older people are becoming 'techno-literate', there are still problems for many - especially the very old, frail aged or disabled - in using new technology. It is good to see ANZ recognise this and acknowledge that face-to-face banking is a preferred option.

"Let us hope the other banks follow the ANZ example with free over the counter services. What is needed is a charter of social obligations and standards for banks.

"COTA is working with the Australian Bankers' Association and the Human Rights and Equal Opportunity Commission on an Industry Action Plan to develop best practice industry standards for electronic banking facilities. This co-operative approach will help provide more accessible banking services for older people and people with disabilities in future.

"COTA urges banks to build on existing successful partnerships to publicise their services for older people, and develop practical, innovative, grass roots education and access programs. To this end, COTA is pleased to see ANZ's commitment to greater funding for their community relations program," Mr Correll concluded.

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27 March 2001

Government must tackle rising tide of poverty
amongst the aged

The Council on the Ageing today called on the Government to implement a range of anti-poverty measures for older Australians in the May Budget. COTA is meeting today and Wednesday with Ministers and Shadow Ministers to put its case for the Federal Budget.

Better retirement incomes

"The Government needs to help people who have no or little other income than the Age Pension - we think an annual supplement of between $250 and $500 per year for this group would be of significant help," said Mr Denys Correll, COTA's national executive director.

"We also believe it is time for the Government to develop a new scheme with the banks for home equity conversion. We get many requests for information about such a product by people who own a home with some equity in it but have little cash.

"COTA has started receiving a steady stream of calls recently from older people who are struggling to manage on a fixed income, especially the Age Pension.

"There are a number of reasons - increased user pays, higher bank fees, the GST and higher petrol prices as well as the removal of a number of commonly used medications from the Pharmaceutical Benefits Scheme are together making life more difficult for many older people.

"We also believe the Government should be acting now to ensure that people moving into retirement are protected from poverty as far as possible.

"It is time that the Government reversed its policy to means test the superannuation assets of people 55 and over receiving unemployment benefits or other payments for 39 weeks. This policy means that they are depleting their most important resource for retirement.

Mature age employment

The Government must invest in policies and programs to extend the working lives of older people:

Aged care

"The Home and Community Care program is under-resourced. Real growth in funds and new models of resource allocation are required to enable older people to access Home and Community Care.

"In residential care – COTA believes the Government should maintain the special grants program for rural and remote areas and the Industry Restructuring Fund for the amalgamation and efficiency of services where needed.

Health care

"Older people need to have faith in public health . Adequate funding for public hospital access is needed. Improvements are also required to discharge planning, convalescent facilities and palliative care.

COTA believes there are a number of excellent Government initiatives which need to be extended in terms of Coordinated Care trials and Enhanced Primary Care.

Dental care

"A national dental health program is a top COTA priority. Many older people are waiting years to be seen in state public health system while enduring pain and discomfort.

Conclusion

"This is a budget in which the Federal Government needs to reassure older Australians, especially those who are struggling that they are not forgotten amidst the many reforms that have taken place in recent years," concluded Mr Correll.

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21 March 2001

COUNCIL ON THE AGEING (AUST) -------------------NATIONAL SENIORS ASSOCIATION

ECONOMIC BENEFITS OF MATURE AGE WORKERS PROVEN IN NEW REPORT SAY AUSTRALIA'S LARGEST SENIORS ORGANISATIONS

The new report by Access Economics Population Ageing and the Economy commissioned by Aged Care Minister, Bronwyn Bishop, will provide a valuable impetus to improving the position of mature age workers because it shows the benefits they bring both to the economy and business.

This was the verdict of Australia's two leading seniors organisations, the Council on the Ageing (COTA) and National Seniors Association (NSA) as Minister Bishop launched the report at a seminar on Australia's ageing workforce held in Melbourne yesterday at the Committee for Economic Development of Australia (CEDA).

Both organisations commended the report for its:

"The report is a wake up call to all Australians that population ageing is one of the most important facts of Australian life in the 21st century," said Mr Denys Correll, COTA's National Executive Director.

Mr David Deans, CEO of NSA said "This is the first report which lays on the table the economic realities of population ageing for Australia. It lays out a path forward in optimising the benefits that this will bring if we are able to make the necessary adjustments in attitudes and policies.

Both Mr Deans and Mr Correll commended Minister Bishop on her foresight in commissioning the report.

"We are both heartened by her interest in the broad issues of population ageing and her championing of the cause of mature age workers," they said in a joint statement.

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20 March 2001

Discrimination against older workers will mean
economic slowdown for Australia

Australia's economic growth will decline if we do not seriously address the issues of age discrimination against older people in the workforce, said the Council on the Ageing addressing a seminar in Melbourne today.

COTA's deputy director, Ms Veronica Sheen, told the Committee for Economic Development of Australia (CEDA) seminar on Australia's Ageing Workforce that Australia's population was one of the most rapidly ageing countries in the world.

"We now have around 12 per cent of the population aged 65 and over. This will increase to around 24 per cent in the next 30 years.

"This means that there will be more older people and less working age people. It will mean lower labour force and productivity growth, fewer taxpayers, more people needing support and a decline in national savings. The result - the rate of economic growth will slow and our standard of living will decline.

"According to the OECD, though, if countries like Australia can keep people in work for more years this will have a significant effect on living standards.

"Encouraging people to remain in work an additional 5 years could mean a 14 per cent higher living standard in the European Union, 18 per cent higher in Japan and 10 per cent higher in the USA. Australia would follow these patterns. The average age of retirement for men in Australia is 58.

"Australians are living to healthy, advanced ages and this poses a problem for retirement incomes. We argue that the present system has not taken the longevity of Australians into account. If Australians can continue longer in work and avoid drawing down on their superannuation for at least a few years, this will dramatically improve the superannuation available to them over the long term.

"We know Australia has an appalling record on age discrimination. COTA calls on employers to establish fair employment practices and on government to address the training and skills needs of mature age people," concluded Ms Sheen.

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26 February 2001

GOVERNMENT TRIPS UP MARKETING OF GST TO PENSIONERS:
2% CLAWBACK PLAN GOES OFF THE RAILS

The Council on the Ageing says that the Government should never have told older Australians that they were getting a 4 per cent increase in the pension as compensation for the GST.

"Pensioners were only ever going to get a 2 per cent real increase in the pension with the other 2 per cent as an advance to be clawed back at the March 2001 indexation point," said Mr Denys Correll, COTA's National Executive Director.

"But the Government was loose with the truth by telling older people they were getting a 4 per cent pension increase – with a view to maximising the acceptability of the GST to this crucial part of the electorate.

"Unfortunately, Government information provided through Age Pension News and Tax Updates ran the risk of being misinterpreted. Pensioners may not have clicked that they would not receive the full indexation in March 2001.

"The Government has the potential to upset older Australians over this issue – not a good move at this stage of the electoral cycle. It will need to act quickly to minimise fall-out.

"COTA believes that the most effective course of action for the Government would be to improve on its 1997 legislated commitment to maintain the single age pension at 25 per cent of Male Total Average Weekly Earnings.

"It should legislate that the pension be increased to 27 per cent of Male Total Average Weekly Earnings as we recommended to the Government in 1999 in the lead up to the GST. This benchmark would significantly improve the adequacy of the pension and provide a better safeguard against the long term effects of the GST on pensioners incomes," concluded Mr Correll.

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12 February 2001

AGED CARE RESIDENTS: A BETTER DEAL UNDER LABOR?

Residents of aged care facilities could have more protection under the proposed Labor aged care system than they do at present, says Council on the Ageing (COTA) commenting on Labor's aged care policy released today.

"COTA welcomes Labor's plan to appoint an Aged Care Ombudsman to oversee an independent complaints mechanism. COTA has been saying for the past year that the present complaints system is not working effectively. It is not independent nor publicly accountable," said Mr Denys Correll, COTA's national executive director.

"However, some areas of Labor's aged care policy will require more detail before we are sure it will deliver better care.

"The policy says that Labor will keep the accreditation process and implement a new National Benchmark of Care. But it is not clear how the two processes will interact and work together. The promised process of consultation with the sector will be essential to get the policy right.

"COTA is pleased to see that Labor is prepared to take on the issues relating to the resources needed to run nursing homes and hostels. Currently the focus is on outcomes for residential aged care ie what is delivered. There is little attention paid to the costs of achieving these outcomes – lack of staffing and lack of appropriately qualified staff are ongoing problems.

"Aged care will be an issue in this year's federal election. All parties owe it to the Australian public to bring about better care for vulnerable older Australians. Overall, Labor has made a good start to getting up its aged care policy before the next election. Putting residents and their carers first is certainly the right direction," concluded Mr Correll.

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18 January 2001

TELSTRA WAY OUT OF LINE ON BILL PAYMENTS FOR OLDER AUSTRALIANS

The Council on the Ageing (COTA) today condemned Telstra for introducing penalties for people who will continue to need to receive their telephone accounts by mail and who will be unable to pay by internet.

"This is a particularly severe impost on older Australians, most of whom do not have internet access. At the same time they will have to pay higher line charges and will not be able to take advantage of lower call rates," said Ms Veronica Sheen, COTA's deputy director.

"The new penalties particularly disadvantage older people, many of whom are on low incomes and can least afford to pay additional fees and charges. In addition, older people are the least likely to have access to a computer.

"The telephone is a very important means of communication for older people, whose mobility may be restricted. They rely on the phone to keep in touch with friends and family and it is important for their security. The imposition of penalties will create further social isolation for this group.

"COTA is very disappointed by Telstra's disregard for its obligations to provide an essential service to low income and disadvantaged people, especially older people.

"COTA calls on Telstra to immediately introduce protections for older Australians from the impending price hikes," concluded Ms Sheen.

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For comment on any media releases or articles please contact

Council on the Ageing (Australia)
Level 2, 3 Bowen Crescent
Melbourne 3004
Tel: (03) 9820 2655 Fax: (03) 9829 9886
email: cota@cota.org.au

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Copyright © 2001 Council on the Ageing. All rights reserved.
Revised: 17 October 2001

Council on the Ageing (Australia)
Level 2, 3 Bowen Crescent, Melbourne Vic 3004
Tel (03) 9820 2655 Fax (03) 9820 9886
email cota@cota.org.au