19-March-2009
Goldstein Media Releases, Community
Thousands of Bayside’s self funded retirees, who through hard work have planned prudently for their retirement, are in danger of being stripped of entitlements by Mr Rudd and Labor due to punishing changes to the eligibility for the Commonwealth Seniors Health Card (CSHC).
The Rudd Labor Government is cutting roughly 22,000 senior Australians off their concession cards through the introduction of legislation that will push people over the income thresholds at a time when they are doing it tough.
“This Bill, which the Coalition has voted against, will hit Bayside particularly hard. There are 3,884 CSHC holders in Goldstein, the third highest of any electorate in the country. Many residents are due to be adversely affected if Mr Rudd is successful in his endeavours,” Andrew Robb, Federal Member for Goldstein, said.
Currently the threshold is $50,000 for singles and $80,000 for couples. Mr Rudd proposes to include income from superannuation and income that is salary sacrificed to superannuation in the income assessment.
The thresholds will remain the same and the superannuation drawings from a taxed fund will remain untaxed, but these drawings will be added to one’s adjusted taxable income for the purpose of assessing eligibility within the thresholds.
“This move by Mr Rudd is disappointing. The Coalition worked hard to pay off the previous Labor Government’s $96 billion debt and build budget surpluses so we could extend some assistance to self funded retirees who were not claiming income support.
“Now, after only 15 months in Government, Mr Rudd and Labor have spent all the surpluses and are committed to a $200 billion debt,” Mr Robb said.
For those who will lose their concession card the effects are acute and come at the worst possible time. Some of the effects include:
• Under the Pharmaceuticals Benefit Scheme, cardholders pay $5.30 per script – after losing the card they will pay $32.90 per script.
• Once a cardholder has paid a total of $318 for scripts, prescriptions are free – without the card this threshold rises to $1264.90, after which a fee of $5.30 per script still applies.
• Those with concession cards also receive an annual allowance of $500 for essential services and an additional $500 lump sum payment – these will not be available to many once Labor’s eligibility changes are made.
Thousands of self funded retirees altered their investment arrangements in 2007 to take advantage of the Coalition’s highly successful Better Super and co-contribution schemes. These programs not only gave senior Australians the opportunity to improve their own lifestyles in retirement but have eased pressure on future Federal budgets.
“The Coalition recognises those who have planned for their retirement. The Rudd Government only seeks to punish them,” Mr Robb said.
Media contact: Skye Buttenshaw, 9557 4644