RUDD TAKES SENIORS CARD OFF SELF FUNDED RETIREES
March 19, 2009
Self-funded retirees and veterans across Gippsland will lose their seniors’ card under changes proposed by the Rudd Labor Government to take effect from July this year.
The Rudd Government is going to take into account superannuation income and income salary sacrificed to superannuation when deciding eligibility for the Commonwealth Seniors’ Health Card.
The Nationals Member for Gippsland Darren Chester voted against the changes when the legislation was presented to Parliament yesterday, branding it “mean spirited”.
“The card entitles holders to pay only $5 for a script, instead of $31.30, and gives them access to the Pharmaceutical Benefits Scheme safety net after spending only $290. Without a card, the safety net will start at $1,141, and scripts will then cost $5, instead of being free,” Mr Chester said.
“We are in the middle of an economic crisis and people are doing it tough.
“Instead of supporting retirees and veterans through this crisis, the Rudd Government is taking away one of their few Government benefits.”
Mr Chester said self-funded retirees were seeing the value of their benefits eroded while the cost of essential items such as groceries and transport continue to rise.
“Self-funded retirees are subject to exactly the same pressures as far as their costs are concerned but with no prospect of any increase in their income,” Mr Chester said.
“In fact, many have seen a reduction in income as the stock market crash has reduced the value of their investments and the value of their superannuation.
“Self-funded retirees have done what governments of all persuasions have encouraged responsible citizens to do—they have made provision for their retirement by saving and investing when they had the opportunity to do .
“When times were good, they prudently set aside some of their income for retirement, rather than spend it.
“Now they are being penalised for their prudence.”