Politics

Government document reveals plans to cut age pension

Mar 19, 2017

Thousands would be affected by the change.

A leaked costings measure for the May budget shows pensioners would lose out under a proposal to cut payments and remove concession cards from some welfare recipients.

News Corp has reported the government considered the savings measure, which would target anyone who received a fortnightly payment of less than $20.02.

Pensioners on a payment this low is entitled to the Pensioner Concession Card which provides lower-cost medicines and discounts on motor vehicle registration, drivers’ licences and council rates.

If the costings measure was passed it would mean these pensioners would no longer be able to use the concession card.

The document reportedly takes particular aim at pensioners, especially those who have rearranged their assets to be eligible for the welfare payment.

“The objective of this proposal is to simplify administration of the payments system by setting a consistent floor below which payments would not be made, to avoid making small fortnightly payments,” the costings document said.

However, prime minister Malcolm Turnbull has taken to social media to slam the report, saying the government has no plans to change the age pension in the upcoming budget.

A report today that the government is cutting the aged pension is false and we outright reject it.

— Malcolm Turnbull (@TurnbullMalcolm) March 19, 2017

“A report today that the government is cutting the aged pension is false and we outright reject it,” he tweeted. “I can assure all aged pensioners the measure reported will NOT be in the Budget.

I can assure all aged pensioners the measure reported will NOT be in the Budget.

— Malcolm Turnbull (@TurnbullMalcolm) March 19, 2017

And sadly, I can also assure you that you can always rely on Bill Shorten to lie.

— Malcolm Turnbull (@TurnbullMalcolm) March 19, 2017

“We assured the journalist too, but she insisted on writing the story. And sadly, I can also assure you that you can always rely on Bill Shorten to lie.”