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> COTA Media Releases and Press Articles
Sunshine Coast Seniors Newpaper, December 2001, p15
COTA Congress provides policies to take to New Government,
Fifty-Plus News, Dec 2001, p4
Older Australians must be helped out of the trap of genteel poverty caused by their paper wealth of a valuable home but not enough money to support it or themselves. But the 25% of those without assets and resources, particularly many older women, require even more assistance to ensure their financial security, according to Denys Correll, National Executive Director of Council on the Ageing Australia.
This was one of the main policy imperatives coming out of the many important papers given at the COTA National Congress in Canberra on 12-13 November.
Professor Ann Harding from the National Centre for Social and Economic Modelling provided valuable and disturbing new figures on the wealth of older Australians over the past 12 years. They show that while the average wealth of Australians aged 65 and over ha risen from $106,000 in 1986 to $204,000 in 1998 , the average wealth of Australian families in the 25-34 year group actually fell in the same period, to only $58,000.
Some older people may be accumulating wealth, as the NATSEM study shows but it is largely tied up in houses. COTA is anxious to see ways they can access this wealth if necessary and not live in genteel poverty. Even more worrying are those older Australians who are missing out altogether, especially women.
Dr Diana Olsberg from the University of NSW Research Centre on Ageing, spoke on the continuing disadvantages which women face in the now largely privatised occupationally linked superannuation system. She made the frightening statement that there is nothing that can be done for women over the age of 45 to help them accumulate enough superannuation for a secure retirement!
This makes the message of Julian Disney, Past President of ACOSS and the International Council on Social Welfare, so relevant. When opening our Congress, he pointed out that Australia was a low tax country which needed to build up infrastructure in hospital and aged care services and other public utilities and not let them run down.
COTA is anxious that Australia does not build up inequity between generations by different benefits, pensions and tax treatments by governments. It is unfair for younger people in need to receive lower benefits when they have the same financial needs as older people.
While there was greatest emphasis at the Congress on the issues of adequate retirement incomes, not just for older Australians now, but for the rest of the community who will live longer and healthier in the future, many other important issues were discussed. Health services and costs, anti discrimination legislation, and use of technology by older people were covered extensively by speakers and delegates.
COTA will continue to represent the interests of older Australians to the new Government, and industry and policy making arenas, to ensure that their needs are met in the context of a growing national economy and in a sustained and responsible way. Our just concluded congress has contributed to the public debate," he concluded.
Australian Financial Review, 22 Nov 2001
Superannuation reform must be one of the major priorities of the new Government and it must go further than the collection of promises made late in the election campaign.
As indicated by Ron Sicree's letter ( AFR 16/11), there is still confusion about what is now on offer for over 70's. The Coalition in fact promised to raise the maximum age of personal superannuation contributions from 70 to 75 but even those aware of this promise are still unsure about what to do in a complex and changing superannuation environment.
This was demonstrated at COTA's recent National Congress in Canberra, where a variety of industry, academic, actuarial and even political experts pointed out the problems and inequities of our current system. These have had the effect of discouraging early and continuing personal contributions and commitment to superannuation by many Australians, to their long term financial cost as well as current and future taxpayers who have to pick up the cost of increased social security payments.
In addition the levels of private savings in the community are low, many people are struggling to survive on the Age Pension or other social security income, and there is too much reliance placed by many on the value of the family home to the detriment of other financial security.
COTA believes that a thorough review of Australia's total retirement incomes system is required urgently, to ensure its personal adequacy and national viability both now and in the future.
This must involve examining the adequacy of the age pension and whether or not the current level of superannuation savings are likely to deliver the income people need for their retirement – which can now extend for up to 30 years or more past retirement.
The question of superannuation for women in particular must be resolved- for as one of our Congress speakers observed, there is nothing that can be done for women over 45 regarding adequate superannuation.
A retirement incomes review needs to investigate ways that people's retirement incomes can be protected and maximised.
Denys Correll, National Executive Director, Council on the Ageing (Australia)
Letter published in Australian Financial Review, 5 Nov 2001, p51
Council on the Ageing Australia refutes private health insurance lobbyist Russell Schneider's intemperate defence of the private health insurance rebate scheme (letters AFR 29/10). His response to the well researched study on the distribution of tax subsidies for health in Australia, published by the Australia Institute, in no way counters the fact that the private health insurance rebate scheme is unfair and costly and is not solving the current problems of access to hospital care when required, particularly by older Australians.
Mr Schneider's employers have certainly benefited from the rebate scheme. Since the rebate introduction the Government share of health costs has risen rapidly to 48% while the insurance fund contribution has declined to just 7%. Individuals now have to fund nearly 20% of health costs from their own pockets.
Despite this rise in Government costs, including the rebate, the number of hospital beds has not risen and quality and access has not improved.
The Government, and Mr Schneider originally promised that the rise in private health insurance coverage would allow more people to use private hospitals instead of public hospitals. This has not occurred. To the contrary, it does not matter how long people have paid for private insurance, COTA still receives reports that if you are old, and do not require quick surgery, many private hospitals will refuse to admit and treat you as they 'cherrypick' the most profitable type of patient.
This is understandable, as private hospitals' loyalty is to their shareholders first, not to their patients. It is the public hospital system that places patients first, but they have been starved of resources, thanks in part to the diversion of Commonwealth funding to private insurance subsidies.
COTA believes that there are better ways to ensure a fair mix of public/ private use in health than the current rebate system. As an interim measure, the rebate should be capped, or at least means tested, or paid direct to people who use private hospitals, to ensure that it goes to those in greatest need, such as older Australians on low incomes.
COTA also takes issue with Mr Schneider on his constant attacks on the well off who choose to use public facilities. Medicare must be retained as a universal health scheme used by all Australians, not just a residual safety net for low income people.
Medicare delivers more efficient and equitable outcomes for Australia's health system both now and over the longer term than private health insurance. In view of Australia's rapidly ageing population, ensuring the best outcomes from the health dollar is immensely important. The $2.5 billion spent propping up private health funds, including $430million in administration and promotion, could be better spent to benefit and improve the health and hospital needs of older Australians.
Denys Correll, National Executive Director, Council on the Ageing (Australia)
Sunshine Coast Seniors Newspaper, November 2001, p1
A version was also published as
Aged Care more than nursing homes
Fifty-Plus News, November 2001
Looking beyond the issue of nursing homes, Denys Corell, national executive director for , Council on the Ageing (Australia) asks political parties to consider some priorities for aged care
Contrary to much media coverage, and to the Coalition's Better Care for Older Australians policy, nursing homes are not the main or only election issue for Australia's 2.3 million voters aged over 65. Most of them won't need nursing home care, either now or in the future, and while the current shortage of nursing home beds and staff, and the quality of care are matters of concern, there are other important issues on ageing which should have been addressed by all political parties in the election campaign.
Older people on full age pensions are struggling to make ends meet. The GST, increased user payments, and waiting lists for services such as dental care are creating pressure on this group. They are worried that if they get sick they will not be able to get a bed in a public hospital or afford the medications they need. While they are worried about falling standards and staffing in nursing homes, they want and expect to be cared for as long as possible at home and are concerned at the lack of services for this to occur.
In addition, there are 2.8 million voters in the pre-retirement years between 50-64. This group is very concerned about whether they will have enough money to retire on comfortably. They are sensitive to policies which affect retirement incomes - including policies on superannuation. Many in this age group are reliant on payments such as Disability Support Pension and Newstart Allowance. Like the age pensioners, they are struggling to make ends meet. Employment is also a major issue for them. Almost half can't find a job, let alone work past the official retirement age. Age discrimination is a problem they face trying to find jobs and many are out of touch with the needs of the contemporary labour market.
In response to these concerns COTA published a series of policy pririties for all political parties and candidates in this election campaign and has analysed the major political responses.
Older people, their families and carers, staff in aged services and the community at large, await these policies. They expect a new vision for Australia's older population.
Sunshine Coast Seniors Newpaper, October 2001, p13
Call for better support for older Australians
Fifty-Plus News, October 2001, p6
Older Australians are valued and feared as voters by the major political parties. Australia's 2.3million 65 year olds and over represent 12% of the total population, but 19% of the voting population. In many of the most marginal electorates they make up over one in five of the voters.About two million of this age group are pensioners.
COTA Australia wants all political parties and candidates to take into account the realities of Australia's ageing population and the fact that families, carers and workers in community services are all affected by government action or inaction towards older Australians.
The entire community wants policies that will ensure that Australia is on track for managing the effects of population ageing - a sound retirement incomes policy, mature age employment policies and an adequate, accessible and affordable health and aged care system.
COTA has prepared a detailed election guide for all political parties and
candidates, and voters, especially older Australians and their families. Headed
21st Century Ageing: A Plan for Government 2002-2004, it aims to:
- improve the lot of older Australians on low incomes
- remove the anxieties about access to important health and community services,
and
- meet the realities of a rapidly ageing workforce.
Its main points include:
COTA wants a renewed and more specific commitment to Medicare with $900 million in extra public hospital funding over two years, to ensure that people can be speedily treated under Medicare wherever they live and whatever their income.
A national system and standards of discharge planning, post acute, rehabilitation and convalescent care must be provided.
National dental health policy
The present queues for public dental treatment, and the pain and misery caused
by lack of dental care, are a scandal. A new Government must restore and fund
a national dental health policy, to ensure that all those on low incomes,
especially older Australians can receive adequate dental treatment wherever
they live.
Strengthening Aged Care
Despite reforms the current residential aged care system must be
improved substantially with adequate funding from the Government. It must
be simpler, more accessible and accountable and provide quality care and facilities
from more and better paid staff. An independent complaints mechanism is needed.
Alongside of these reforms, the Government must also provide more funding and better targetting for Home and Community care programs and community aged care packages, to offer choice of care where people want it.
Progressive taxation system
The next Government must ensure:
Strengthening Australia's retirement incomes system
Older people on a full pension or allowance need extra income support
now. We also need a full scale review of retirement incomes to cover superannuation,
the public pension system and private savings and how they must all relate
to each other.The Government also needs to support home equity conversion
schemes through appropriate social security means test treatment.
Issues for older workers
We need to prolong the working lives of Australians. Around 33 per
cent of people aged 50-64 rely on some form of social security income and
46 per cent do not have paid employment. There must be special policies for
mature workers which include referral to appropriate services and training,
careers advice, assistance with job search, information technology training,
transition to retirement programs, and education about the labour market of
the 21st century.
Federal Age Discrimination legislation is needed to provide national protection and to help educate the community about this important social issue.
COTA asks all parties to make responsible commitments in these areas to provide a fair go for older Australians in greatest need.
by Denys Correll, National Executive Director of COTA (Australia)
Herald Sun, My Say, 24 September 2001
Older people hold the key to the forthcoming Federal Election. There are 2.3 million voters over the age of 65 and they are one in five voters in many of the marginal Victorian, and Australian, electorates.
Many of them are on full pensions and are struggling to make ends meet, as are 33% of 50-64 year olds who are reliant on other social security payments. They are literally worried sick by the GST, increased user pays policies and pressures on services such as public hospitals, nursing home beds and dental care.
COTA wants all political parties and candidates to support a new vision for an ageing future in the 21st century. It must include
Older people, their families and carers, staff in aged services and the community at large should vote for candidates and parties in terms of their commitment to these essential policies.
Fifty-Plus News, September 2001, p4
Veronica Sheen, COTA Australia's Deputy Director, argues that governments need to work jharder to ensure that older people have the opportunity to participate in the workforce.
The Federal Government is now grappling with the problem of a growing, ageing population putting pressure on health, pharmaceuticals, pension and aged care expenditures. The only 'solution' announced so far is a call by both the Prime Minister and Minister for Aged Care for older Australians to keep working so as to keep paying taxes and not drawing on a pension.
But this ignores the fact that many older Australians who want to work, don't have the opportunity to do so. Specific policies are needed by the Government to ensure meaningful workforce participation by older workers.
Instead of talking about the broad group of 55 to 70 year olds 65 staying at work, the Government needs to concentrate on those under 65 who still have to work or want to work, but can't find jobs. 46 per cent of people in the 50-64 age group do not have paid employment, and one in three 50-64 year olds rely on some form of social security payment.
Most Australians cannot afford to retire in their 50s. They have little superannuation, as it became compulsory only in the 1980s. Many have families requiring ongoing education and financial support.
There is also evidence of significant health and well-being effects on individuals from continued working and economic participation. This in turn reduces the call on government for health and welfare services and outlays.
An age balanced workforce will ensure that there is a good blend of skills and the transmission of desirable work traits from older to younger workers such as loyalty to the organisation, work ethic and stability as well as well-honed skills and abilities.
The Prime Minister has talked of the need for a flexible labour market to respond to older workers needs and choices. But this is not the real problem. Government action is needed against widespread discrimination against older workers. A survey by Drake International of 500 employers has shown that none would employ an older worker.
Over 50s are discouraged from seeking employment, are discriminated in the workforce and are forced into involuntary early retirement, which is neither planned for nor desired.
The immediate reforms needed are:
There is a need for longer term planning for the ageing population and ageing workforce. This means:
Sunshine Coast Senior, August 2001 p23
Management of the costs of and access to pharmaceuticals is a critical part of the health and aged care system. Governments of all persuasions seek to contain costs but failure to place drugs on the Pharmaceutical Benefits Scheme can mean crippling costs to older people in pain.
Denys Correll, the National Director of COTA, also sees the safe and appropriate use of medicines as an important part of the debate about medicines.
Older people are higher users of medicines than other population groups due to higher rates of chronic illness. They are at greater risk of adverse drug reactions as they are more likely to be taking multiple medicines. Changes in physiology and social and physical circumstances also contribute to the risk of adverse drug reactions. In addition, older people are more likely to experience poor vision, hearing and memory loss and have altered metabolic rates which can also affect drug usage and impact.
South Australian research has shown that 89% of older people take one or more medications, up to 90% of older people can have medication related problems, one in five older persons' hospital admissions are medication related ( compared to 2.4% of the general population) and that the most remediable condition of older persons is inappropriate use of medication.
There is an obvious need for
The Government announced a Better Medication Management System (BMMS) in the 2001 Budget. This electronic system will allow consumers to choose a medication record which they can access and which doctors and pharmacists can use to avoid drug interactions.
COTA has studied the legislation and made submissions on behalf of older Australians - and consumers generally - to ensure that BMMS will be of benefit and will not threaten their privacy. As well as being voluntary, it must be simple to understand and must provide consumers with their own copy in print form.
Market research does not provide all the answers. The Government also plans to spend $2.3 million each year to 'more readily tap into consumer and local community views on health and aged care programs' through a market research program. It is a pity the Government does not use community organisations such as COTA more, to provide this input.
COTA's individual members and organisational members provide a very large membership base. Many other older people, their carers and relatives and organisations come to COTA for information and advice and to alert us to issues in relation to Government policies and programs. The Seniors Information Service which COTA runs or auspices in most states and territories fields around 100,000 calls a year- substantially more than market research could hope to reach.
In the medicines area in particular, COTA has run successful "Wise Use of Medicines" programs in conjunction with the Pharmacy Guild of Australia but is restricted in continuing these by lack of funding.
COTA will continue to press for and assist older Australians in a wiser use of medicines and will work to ensure any Government plan is fair and accessible to all regardless of age or infirmity.
*****
Fifty-Plus News August 2001, p6
COTA Australia is working to ensure that the Federal Government's new medicines plan for keeping track of all the medications being taken will help older Australians, and will not threaten their privacy, says Denys Correll, its National Executive Director.
The new scheme, to be known as the Better Medication Management System, or BMMS is in draft legislative form now. It will cover all medicines, whether prescription, over the counter or complementary medicines, and wherever prescribed –at home, in hospital or in residential aged care.
COTA Australia has prepared a detailed submission aimed at ensuring the bill protects the rights of older persons whilst ensuring they have all the information they need about their current medicines when needed.
COTA supports the reasons for the BBMS which is to improve levels of access to medication information for participating doctors and participating suppliers through the establishment and maintenance of an electronic record that will contain the medications histories of participating consumers. It is intended that improving levels of access to medication information will assist in reducing adverse drug reactions outcomes/events and interactions and hospitalisations.
It is a voluntary scheme for consumers, medical practitioners and pharmacists. Consumers will register through participating doctors and suppliers. A consumer's BMMS Record will contain information relating to the consumer's medication. The information will include identifying information such as name, gender, address, date of birth and Medicare number, and a history of all occasions of interaction with the consumer's BMMS record by participating doctors, suppliers and the BMMS Board.
Older people are higher users of medicines than other population groups due to higher rates of chronic illness. They are at greater risk of adverse drug reactions as they are more likely to be taking multiple medicines. Changes in physiology and social and physical circumstances also contribute to the risk of adverse drug reactions. In addition, older people are more likely to experience poor vision, hearing and memory loss and have altered metabolic rates which can also affect drug usage and impact.
COTA supports many aspects of the BMMS, especially draft plans for electronic record keeping, proposed privacy protection to individual medical records, how informed consent will be managed. It believes the scheme has great potential for regular medication reviews and management.
However, COTA believes that the draft Bill must ensure information about rights and responsibilities is easy to read and understand and that the processes for amending or correcting information are simple. Individual should have easy and free access to their records, via hard copy.
COTA calls on the Government to support it and other consumer organisations to help educate members and the public about the advantages of participating, and of the options of abstaining or withdrawing from the BMMS at any time.
COTA believes hospital participation in the BMMS is a priority. In some regional areas older people obtain all of their medication from the local hospital. BBMS should also extend quickly into residential aged care, to ensure the quality use of medicines and best practice for all older Australians, whatever their circumstance.
Australian Senior, August 2001 p49
Older Australians can benefit from a proposed electronic system which keeps track of all the medications they are taking, whether prescription, over the counter or complementary medicines, whether prescribed at home, in hospital or in residential aged care.
The strongest possible privacy protection, however, will be required, for all individual medicine records.
COTA Australia is playing a leading role in providing advocacy and information to the Department of Health and Aged Care as it prepares the Better Medication Management System (BMMS) Bill. It has prepared a detailed submission aimed at ensuring the bill protects the rights of older persons whilst ensuring they have all the information they need about their current medicines when needed, for example, at admission to hospital.
COTA supports the purpose of the Act,which aims "to improve levels of access to medication information for participating doctors and participating suppliers through the establishment and maintenance of an electronic record that will contain the medications histories of participating consumers. It is intended that improving levels of access to medication information will assist in reducing adverse drug reaction outcomes/events and interactions and hospitalisations."
Participation in the BMMS by consumers, medical practitioners and pharmacists is to be voluntary, with consumer registration through participating doctors and suppliers.
A participating consumer's BMMS Record will contain information relating to the consumer's participation and to their medication.
The information will include identifying information such as name, gender, address, date of birth and Medicare number, and a history of all occasions of interaction with the consumer's BMMS record by participating doctors, suppliers and the BMMS Board.
Older people are higher users of medicines than other population groups due
to higher rates of chronic illness. They are at greater risk of adverse drug events as they are more likely to be taking multiple medicines. Changes in physiology and social and physical circumstances also contribute to the risk of adverse drug events. In addition, older people are more likely to experience poor vision, hearing and memory loss and have altered metabolic rates which can also affect drug usage and impact.
COTA supports many aspects of the BMMS, especially the:
The sense of control over personal health information is particularly important for vulnerable older people and their carers. The BMMS needs to be a system to enable active rather than passive participation by consumers, and also active discussions with doctors and pharmacists.
However, COTA believes that the draft Bill must be amended to:
Fifty-Plus News, July 2001, p4
The Government promised older unemployed people that the welfare reform package would make it a lot easier for them to get the help they need to compete for jobs. But has the package, announced on 22 May with the Federal Budget, delivered on the promise? Veronica Sheen, deputy director of Council on the Ageing (Australia) comments.
Mature age people were a major focus of the welfare reform package. This will mean Centrelink and Job Network providers will be more aware of the issues of the mature age unemployed. The hope is that this increased awareness will translate into a better deal for them they have received in the past. Time will tell.
In real terms, the benefits flowing from the package for mature age unemployed people are:
These initiatives are a good starting point for helping the mature age unemployed and others in the 50-64 group receiving social welfare payments. But let us not forget that a lot of people in this group will not receive anything as they are not part of the social security system. This includes people who are under-employed, people whose spouses have a job and people whose assets mean that they cannot get Newstart Allowance.
COTA still argues that we need special programs for mature age people that take account of their learning styles, existing skills and experience and employment goals. But we think the welfare reform package is a good start and that our hard work on the issue over the past few years has paid off.
Fifty-Plus News, June 2001, p4
The Council on the Ageing welcomes the Federal Government's Budget announcement to provide a pensioner bonus of $300. But Veronica Sheen, COTA's Deputy Director, wants the bonus to be an annual additional supplement for pensioners.
COTA was the only seniors organisation actively arguing for such a bonus in the lead up to the budget. In our Budget submission , sent to the Government in February, this was one of our major budget recommendations .
The GST has hit pensioners harder than the Government's original estimates suggested. We have heard too many stories of hardship in recent months to doubt the seriousness of the situation.
Single aged pensioners with little or no private income have been struggling the most, especially if they are living in rental accommodation. Many other older people who have lost their spouse discover the greater difficulties of maintaining a house or garden because the fixed costs are the same as for a couple. And of course the pensioners living in caravan parks are hit hard by the GST on their fees.
The bonus will help people with such expenses as repairs and maintenance or to buy something that they need but which they have not been able to put money aside for. This could include dental treatment - an expense which often is foregone by older Australians despite the pain they may suffer.
However COTA argues that the Government needs to make this bonus an annual additional supplement for pensioners rather than a one-off payment in an election year. As long as the GST continues, pensioners' incomes will continue to be eroded by the extra GST costs, so it is essential that there is additional, ongoing compensation.
We have called on all political parties to make this necessary commitment as soon as possible.
COTA points out that the Government has also moved to shore up support from older Australians who are self-funded retirees by increasing 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 the Commonwealth Seniors Health Card concessions.
As well as extending the Telephone Allowance to these newly eligible self-funded retirees, the Commonwealth has promised that it will negotiate with State and Territory Governments to extend some or all of the concessions available to pensioners to people who have the Commonwealth Seniors Health Card.
As Fifty-Plus News readers who travel interstate would know, and as argued by COTA in its Budget submission, it is increasingly important that the mobility of older people is maximised. The Government must have heard COTA's call to "take a leadership role in ensuring that reciprocal arrangements are negotiated".
The Budget has promised other necessary health, welfare, aged care and income benefits to older Australians. But it has failed those older Australians needing affordable dental care, or waiting for a nursing home bed. COTA will push for these in the run up to the federal election. It seems a pity that we do not have a Federal Election every year!
Australian Senior, June 2001, p24
The Australian Bankers Association recently released a draft plan for public comment in regard to improving the accessibility of banking services to older people and people with a disability. Helen Scott, Information Manager at Council on the Ageing (Australia) comments on the plan.
Council on the Ageing (COTA) has told banks for many years that older people prefer face-to-face delivery of information and financial services. We welcomed the statement in the draft plan that 'for many people, the only way these barriers will be avoided is by the continued presence of face-to-face services'
Older people have constantly told us that they have been dismayed by the removal of existing face-to-face services, whether by the introduction and increase in over-the-counter charges or closure of branches. A decline in service standards has also been noted.
It would probably be cheaper for the banks to provide free face-to-face services to the current cohort of older people while electronic services improve and become more widespread. It was gratifying to see the ANZ announce unlimited fee-free over the counter transactions for customers aged 60 or over from ANZ personal transaction accounts from July 2001. Hopefully other banks will follow their example.
There is still not enough recognition of the barriers to the use of electronic banking such as limited literacy, cognitive impairment or memory loss. The bankers place too much emphasis on attitudinal, awareness, physical, affordability and safety factors.
The closure of banks is a major issue because when banks go so do other services. When services go, older people in rural areas have to travel long distances for health and other services that can't be done electronically.
Problems identified with the new forms of face-to-face facilities which replace branches, such as giroPost and agency arrangements, include:
Current research emphasises the frustration and dislike of automated telephone systems expressed by consumers across all age and socio-economic levels. While "martini banking" (access any time, any place, anywhere, via any access device) is convenient and desirable, face-to-face is still a desired additional option. Humans are still better than automated telephone services for answering non-standard questions, and for advice.
The plan does not address issues of providing IT (information technology) access and education for groups such as older people living in non-metropolitan areas, with limited education, low literacy and low incomes, or of non-English speaking or indigenous background.
As one of our members said: "No matter how far the good intent goes and how much quality assurance is put into place, it is nought to a large percentage of the older population who fall victims of the digital divide."
Organisations providing electronic services take it for granted that they must train staff but do not extend this logic to training their customers. Current short-sighted and discriminatory practices of not making work-placed IT training available to older workers, or laying them off first, further disadvantages older people.
The next important stage in the process is implementation of the standards which are developed. A vital part of that process will be community awareness and training programs and a commitment by government, industry and community sectors to collaborate to ensure an inclusive technology environment.
The Plan and submissions are available on the web at http://www.bankers.asn.au under Disability Action Plan. COTA's submission is also available at http://www.cota.org.au/bankplan.htm.
Fifty-Plus News, May 2001, p6
Increased bank fees and branch closures have been a sore issue for older people in recent years, but the ANZ bank's April announcement on free over the counter transactions for seniors may be turning the tide, says Helen Scott, Information Manager at Council on the Ageing (Australia)
Technology has dehumanised banking, and the personal relationships customers have had via their money with the banks, in bank branches. Banks recognise this, although it is rarely reported, and are driven by the reality that electronic transactions are a fraction of the cost of face-to-face. In addition, competition has put pressure on banks not to subsidise unprofitable customers.
Experience overseas suggests that customers do not want a remote relationship. Online-only banks are not attracting the customers they need, and Bank of Montreal for example folded its Internet subsidiary in 1999.
The ANZ bank's decision on the 20th of April to offer unlimited fee-free over the counter transactions for customers aged 60 and over from their ANZ personal transaction and deeming accounts from July 1 2001 marks a momentous decision by a major Australian bank that banking needs to satisfy their customers as much as their shareholders.
The ANZ also proposes a Customer Charter, the appointment of a senior level customer Advocate and greater funding for their community relations program.
COTA has long argued for older people to be exempt from penalties for not using electronic banking. 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.
We 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.
Australian Senior April 2001, p58
With the Federal Government still facing the political fall-out from failing to fully index the pension in March 2001, COTA has presented a far-reaching set of proposals to improve the position of low income older Australians in the 2001 Budget due on 22 May. Veronica Sheen, deputy director of COTA (Australia) reports.
Older people who have no or little income than the Age Pension tell COTA that they are struggling to make ends meet. Many didn't understand that the Government's promise to increase the pension by 4 per cent for the GST, really meant just a 2 per cent increase.
User pays and co-payments, the GST and higher cost for medications taken off the Pharmaceutical Benefits Scheme are making life harder for many low income older people.
COTA is asking the Government to provide a means-tested low income pensioner supplement of between $250 and $500 per year to ease their financial pressures.
We also suggest an additional supplement for pensioners in rural and regional areas who tell us that costs have gone up a lot since the introduction of the GST.
Many older people are asking COTA where they might get loans for special purposes such as undertaking repairs to a house or car, or - of most concern - just to manage day-to-day living costs. Many people are interested in the idea of using some of the equity in their home to improve the quality of their life and to improve their disposable income.
Unfortunately, there are currently no schemes which assist older people to take out a reverse mortgage on their home. The Government abolished its Home Equity Conversion Scheme with the Advance Bank in 1996. COTA recommends that the Government develop another reverse mortgage scheme to help people use some of the equity in their home to improve the quality of their life.
Many older people have also expressed their frustration at not being able to use their state or territory concession card for transport concessions when they are travelling interstate. In a time of high mobility when friends and families are often far-flung, it is critical that older people are able to move around. States and territories continue to back away from the problem, but it is time, COTA says, that the Commonwealth Government, initiates a program of reciprocal arrangements with State and Territory Governments to provide eligible older Australians with transport concessions in all parts of Australia. This may involve some investment on the part of the Commonwealth to ensure the success of the initiative.
COTA's submission contains a range of other recommendations for the Federal Budget including improvements to public housing, assistance for private renters and help for older people who want to shift to more appropriate accommodation. We are also asking the Government to assist COTA to establish a national grandparenting association.
COTA has presented separate submissions to the Government on health and aged care and mature age employment.
Fifty-Plus News, March 2001, p5
In the lead up to the Federal Budget and the election later in 2001, the Government is facing a renewed fight on the means testing of superannuation. Council on the Ageing Deputy Director, Veronica Sheen explains.
In the first Budget of the Coalition Government in 1996, a new policy was introduced. If you are 55 and over, receiving a Centrelink payment (not the age pension) for 39 weeks then whatever superannuation you have is included in the social security means test.
The Government's reasoning was that people who had their money tied up in super should be treated the same way as people who had their money invested elsewhere such as a bank account or in shares.
While there is some logic in this, there are also a lot of problems. COTA has identified quite a few.
If you are unemployed, 55 or over, and receiving Newstart Allowance or Mature Age Allowance for 39 weeks, and you have some superannuation over the asset test threshold - $133 250 for single homeowner and $189 500 for a married couple homeowner- then you lose your payment altogether.
While sums of this amount may sound a lot, if you trying to prepare for a retirement of many years (the life expectancy for women is now 82 and for men it is 75 and rapidly rising) then these are not such great amounts especially if you wish to have some independence and a reasonable standard of living.
In order to live however, when you lose your Centrelink payment, you will need to tell your superannuation fund that you are retired and request for the release of the funds to cover your current living costs - even though, you may wish to continue to work and may be actively looking for work.
In addition, you will then be unable to make further contributions to the fund should you subsequently find a job.
COTA believes that many people are financially very disadvantaged by this policy in the long term because it cuts across the advantages that could be gained by maintaining and adding to their savings in the superannuation fund until retirement.
The highest level of compounding interest for a superannuation fund occurs in the immediate pre-retirement years. The policy however reduces opportunities for people to get the best final superannuation entitlement with a result being long term dependence on government income support in retirement. It is also an incentive for early retirement.
Surely all the things that a Government with an ageing population should be trying to avoid!
2001 will surely be a dynamic year with a large number of state elections and the Federal Election towards the end of the year. COTA will be keeping all politicians - whatever side of politics - on their toes for the interests of older Australians.
Fifty-Plus News, February 2001 p4
The Government's "directional" statement on welfare reform could mean a better deal for mature aged people on social security. But the promises will need funding in the 2001 Budget and the commitment of the new Minister, Senator Amanda Vanstone. Veronica Sheen, COTA's deputy director writes.
The Government's long awaited response to the McClure report on welfare reform holds a lot of promise for older Australians (those aged around 50-64) caught in the trap of long term reliance on social security with limited prospects of finding a job. The Government is proposing to:
The Government has also said it will not extend 'work for the dole' to the mature aged but it will be expecting greater levels of 'participation activities' for those aged between 40 and 64.
The Government's welfare reform proposals look as if they may break the jobs impasse for mature age people on social security benefits. However, there is a lot of detail yet to be decided. And most important of all - the success of the strategy will depend on the level of commitment the Government will give in the 2001 Budget due next May. COTA has already started preparing a range of proposals for the next Budget.
The final consideration in welfare reform is the retirement of Senator Jocelyn Newman and the promotion of Senator Amanda Vanstone as the Minister for Family and Community Services. Senator Newman indicated a strong interest in the mature aged unemployed in a number of her speeches. We trust the new Minister will share her concerns.
The process of reform of Australia's social welfare system goes into a new phase in the first months of 2001 in the lead up to the Budget. Let's hope mature age people are winners in the process.
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 © 1997 Council on the Ageing.
All rights reserved.
Revised: 13 March 2002
COTA National Seniors Policy Secretariat [formerly 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