2022-3 Federal Budget: What does it mean for you?​

Yesterday, we looked at the available budget information and what we could expect in terms of support for pensioners. There are a few surprises here and there so stay tuned for everything you need to know.

Well, the Albanese government's first federal budget has officially been released and the question on everyone’s lips is: what does it mean for pensioners? And on a personal level, what does it mean for you?

How did pensioners fare in this federal budget? Image Credit: Shutterstock

Cost of living

Unfortunately, members, this isn’t great news.

‘This budget makes hard decisions for hard times,’ Chalmers said in his budget speech.

Further global economic downturn is expected as the government responds to inflation and deals with disaster payments in the wake of the floods. All in all, the economic outlook of Australia looks gloomy.

Despite this, Treasurer Jim Chalmers said, ‘Our economy is expected to grow solidly this financial year, by three and a quarter per cent, before slowing to one and a half per cent growth for 2023-24, a full percentage point lower than what was forecast in March.’

‘The worst thing that we could do is contribute to even higher inflation,’ Chalmers said. ‘We don’t want cost-of-living relief to be counter-productive. The best thing we can do now is exercise restraint.’

$65.7 million in funding has been set aside for government agencies including the Australian Competition and Consumer Commission (ACCC) to regulate the gas and electricity industries. Currently, it’s expected that prices will increase by up to 58 per cent in the coming year (20 per cent increase by Christmas and approximately 30 per cent in the coming financial year).

‘I'm not going to pretend that we're not worried about these electricity price forecasts,’ Chalmers told reporters.

‘I think any responsible government, facing these kinds of price hikes for electricity and gas, needs to consider a broader suite of regulatory interventions,’ he said, making it clear his preference is for legislation, rather than cash splash spending programs.

Working Pensioners and Self-Funded Retirees

Those of you on the age and service pensions can finally earn additional wages before seeing your payments cut.

Working pensioners can now earn an extra $4000 as a one-off this financial year before their payments are reduced. This is a rise in allowed earnings from the previous $7800 to $11,800.

This kicks in from 1 December 2022 and eligible pensioners will have their Work Bonus Income Bank credited until 30 June 2023.

Subject to passage of legislation, Age Pension and equivalent Department of Veterans’ Affairs pension recipients with employment income who exceed the income limit will have their payment suspended for up to two years, rather than cancelled after 12 weeks as is currently the case.

They will also be able to keep their Pensioner Concession Card, and associated benefits, for up to two years.

Almost $70 million has been allocated to increase the income threshold for the seniors’ health card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

This higher income threshold is expected to also give more than 50,000 self-funded retirees access to the Commonwealth Seniors Health Card (CSHC).

Housing affordability

As predicted, the National Housing Accord plans for one million affordable houses. This will kick in from 2024 so don’t expect anything anytime soon.

But while building 1 million homes in five years sounds unrealistic, the ABC reports that 985,085 houses were built in the five years prior to March 2022.

‘The budget also includes $350 million for the federal government and states and territories to build 10,000 new homes each year.’ states the ABC.

Older Australians will also continue to be encouraged to downsize their homes and $74 million has been pledged to support this.

The budget will expand the exemption of home sale proceeds from pension asset testing from 12 months to 24 months. This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

The lower deeming rate (0.25 per cent) will still apply. This rate lower deeming rate will also remain frozen at 0.25 per cent. The upper rate will remain at 2.25 per cent for the next two years (until 30 June 2024).

Prime Minister Anthony Albanese congratulates Jim Chalmers on his first budget. Image Credit: ABC News: Nick Haggarty

​

Health care

From January 1, 2023 the maximum general co-payment for Pharmaceutical Benefits Scheme (PBS) medication lowered to $30 per script (from $42.50). The government expects this will save around 3.6 million Australians more than $190 million in out-of-pocket costs.

The bad news? Concession card holders already pay a lower $6.80 co-payment and this figure is not set to change anytime soon. So is this PBS reform even helping the right people? You can read more here.

Funding does, however, include Flash Glucose Monitoring and Continuous Glucose Monitoring devices which is good news for Australians living with Type 1 Diabetes. $327.7 million has been confirmed over 4 years from 2022–2023 so we can expect this to come into effect ASAP. More information is due to be released soon.

$114 million will go to additional mental health and suicide prevention initiatives, including $47.7m to restore the loading for Medicare subsidised online psychiatry consultations and a $23.5m expansion of the headspace network.

Cancer patients and their families, medical professionals, and researchers will benefit from $452 million to deliver new Comprehensive Cancer Centres in Adelaide and Brisbane. Meanwhile, $14.8 million in funding will establish a Melanoma Nurses Program across Australia.

Finally, preparatory work to establish an Australian Centre for Disease Control will begin with $3.2 million in funding.


Aged Care

The budget shows a commitment to improve safety, dignity, quality and humanity in the aged care sector.

‘This Budget builds on the recommendations of the aged care royal commission and implements the government’s federal election commitments to further reform aged care,’ says Ian Yates, Council on the Ageing CEO.

A $3.9 billion investment in this budget will implement reforms that meet the needs of aged care recipients.

How will the $3.9 billion package be spent?

• $2.5 billion towards 24/7 nurses and increased care minutes
• $48.6 million towards establishing Aged Care Complaints Commissioner and the Inspector-General of Aged Care
• $312.6 million towards improved information and communication technology

From 1 July 2023, aged care residents will benefit from the new requirement for aged care homes to have a registered nurse on site at all times. That’s right, at least one registered nurse must be on site 24 hours a day, seven days a week.

For Australians who wish to be independent and remain living in their own home, reforms to in-home aged care will start from 1 July 2024. Existing in-home aged care programs will continue until this time. You can read more about the existing in-home care packages here.

There is also greater support for young Australians interested in studying aged care such as free TAFE courses. In time, this should increase the available staff in a struggling industry.

Bottom line

While the current budget will decrease overall debt in the next few years and basically halve the deficit, overall Australia’s borrowings are expected to surpass $1 trillion by June 2024. Ultimately, the pension rate and CPI increases are not keeping pace with inflation.

As member @Qwarkus aptly summarised, 'The supermarket trolley holds less every week.'

Anything else of interest?

I’m glad you asked! Other main winners from the budget include the $4.7 billion confirmed spending on childcare, $530 million for paid parental leave and $852 million for vocational education.

Did you tune into the budget, members? Did the government meet your expectations? This is Labor’s first federal budget since 2013 so we’d love to hear from you directly. Let us know in the comments below!

 

[Pattycake]

2022-3 Federal Budget: What does it mean for you?​

Yesterday, we looked at the available budget information and what we could expect in terms of support for pensioners. There are a few surprises here and there so stay tuned for everything you need to know.

Well, the Albanese government's first federal budget has officially been released and the question on everyone’s lips is: what does it mean for pensioners? And on a personal level, what does it mean for you?

View attachment 7808

How did pensioners fare in this federal budget? Image Credit: Shutterstock

Cost of living

Unfortunately, members, this isn’t great news.

‘This budget makes hard decisions for hard times,’ Chalmers said in his budget speech.

Further global economic downturn is expected as the government responds to inflation and deals with disaster payments in the wake of the floods. All in all, the economic outlook of Australia looks gloomy.

Despite this, Treasurer Jim Chalmers said, ‘Our economy is expected to grow solidly this financial year, by three and a quarter per cent, before slowing to one and a half per cent growth for 2023-24, a full percentage point lower than what was forecast in March.’

‘The worst thing that we could do is contribute to even higher inflation,’ Chalmers said. ‘We don’t want cost-of-living relief to be counter-productive. The best thing we can do now is exercise restraint.’

$65.7 million in funding has been set aside for government agencies including the Australian Competition and Consumer Commission (ACCC) to regulate the gas and electricity industries. Currently, it’s expected that prices will increase by up to 58 per cent in the coming year (20 per cent increase by Christmas and approximately 30 per cent in the coming financial year).

‘I'm not going to pretend that we're not worried about these electricity price forecasts,’ Chalmers told reporters.

‘I think any responsible government, facing these kinds of price hikes for electricity and gas, needs to consider a broader suite of regulatory interventions,’ he said, making it clear his preference is for legislation, rather than cash splash spending programs.

Working Pensioners and Self-Funded Retirees

Those of you on the age and service pensions can finally earn additional wages before seeing your payments cut.

Working pensioners can now earn an extra $4000 as a one-off this financial year before their payments are reduced. This is a rise in allowed earnings from the previous $7800 to $11,800.

This kicks in from 1 December 2022 and eligible pensioners will have their Work Bonus Income Bank credited until 30 June 2023.

Subject to passage of legislation, Age Pension and equivalent Department of Veterans’ Affairs pension recipients with employment income who exceed the income limit will have their payment suspended for up to two years, rather than cancelled after 12 weeks as is currently the case.

They will also be able to keep their Pensioner Concession Card, and associated benefits, for up to two years.

Almost $70 million has been allocated to increase the income threshold for the seniors’ health card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

This higher income threshold is expected to also give more than 50,000 self-funded retirees access to the Commonwealth Seniors Health Card (CSHC).

Housing affordability

As predicted, the National Housing Accord plans for one million affordable houses. This will kick in from 2024 so don’t expect anything anytime soon.

But while building 1 million homes in five years sounds unrealistic, the ABC reports that 985,085 houses were built in the five years prior to March 2022.

‘The budget also includes $350 million for the federal government and states and territories to build 10,000 new homes each year.’ states the ABC.

Older Australians will also continue to be encouraged to downsize their homes and $74 million has been pledged to support this.

The budget will expand the exemption of home sale proceeds from pension asset testing from 12 months to 24 months. This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

The lower deeming rate (0.25 per cent) will still apply. This rate lower deeming rate will also remain frozen at 0.25 per cent. The upper rate will remain at 2.25 per cent for the next two years (until 30 June 2024).

View attachment 7809

Prime Minister Anthony Albanese congratulates Jim Chalmers on his first budget. Image Credit: ABC News: Nick Haggarty

​

Health care

From January 1, 2023 the maximum general co-payment for Pharmaceutical Benefits Scheme (PBS) medication lowered to $30 per script (from $42.50). The government expects this will save around 3.6 million Australians more than $190 million in out-of-pocket costs.

The bad news? Concession card holders already pay a lower $6.80 co-payment and this figure is not set to change anytime soon. So is this PBS reform even helping the right people? You can read more here.

Funding does, however, include Flash Glucose Monitoring and Continuous Glucose Monitoring devices which is good news for Australians living with Type 1 Diabetes. $327.7 million has been confirmed over 4 years from 2022–2023 so we can expect this to come into effect ASAP. More information is due to be released soon.

$114 million will go to additional mental health and suicide prevention initiatives, including $47.7m to restore the loading for Medicare subsidised online psychiatry consultations and a $23.5m expansion of the headspace network.

Cancer patients and their families, medical professionals, and researchers will benefit from $452 million to deliver new Comprehensive Cancer Centres in Adelaide and Brisbane. Meanwhile, $14.8 million in funding will establish a Melanoma Nurses Program across Australia.

Finally, preparatory work to establish an Australian Centre for Disease Control will begin with $3.2 million in funding.


Aged Care

The budget shows a commitment to improve safety, dignity, quality and humanity in the aged care sector.

‘This Budget builds on the recommendations of the aged care royal commission and implements the government’s federal election commitments to further reform aged care,’ says Ian Yates, Council on the Ageing CEO.

A $3.9 billion investment in this budget will implement reforms that meet the needs of aged care recipients.

How will the $3.9 billion package be spent?

• $2.5 billion towards 24/7 nurses and increased care minutes
• $48.6 million towards establishing Aged Care Complaints Commissioner and the Inspector-General of Aged Care
• $312.6 million towards improved information and communication technology

From 1 July 2023, aged care residents will benefit from the new requirement for aged care homes to have a registered nurse on site at all times. That’s right, at least one registered nurse must be on site 24 hours a day, seven days a week.

For Australians who wish to be independent and remain living in their own home, reforms to in-home aged care will start from 1 July 2024. Existing in-home aged care programs will continue until this time. You can read more about the existing in-home care packages here.

There is also greater support for young Australians interested in studying aged care such as free TAFE courses. In time, this should increase the available staff in a struggling industry.

Bottom line

While the current budget will decrease overall debt in the next few years and basically halve the deficit, overall Australia’s borrowings are expected to surpass $1 trillion by June 2024. Ultimately, the pension rate and CPI increases are not keeping pace with inflation.

As member @Qwarkus aptly summarised, 'The supermarket trolley holds less every week.'

Anything else of interest?

I’m glad you asked! Other main winners from the budget include the $4.7 billion confirmed spending on childcare, $530 million for paid parental leave and $852 million for vocational education.

Did you tune into the budget, members? Did the government meet your expectations? This is Labor’s first federal budget since 2013 so we’d love to hear from you directly. Let us know in the comments below!

Well I'm not a

2022-3 Federal Budget: What does it mean for you?​

Yesterday, we looked at the available budget information and what we could expect in terms of support for pensioners. There are a few surprises here and there so stay tuned for everything you need to know.

Well, the Albanese government's first federal budget has officially been released and the question on everyone’s lips is: what does it mean for pensioners? And on a personal level, what does it mean for you?

View attachment 7808

How did pensioners fare in this federal budget? Image Credit: Shutterstock

Cost of living

Unfortunately, members, this isn’t great news.

‘This budget makes hard decisions for hard times,’ Chalmers said in his budget speech.

Further global economic downturn is expected as the government responds to inflation and deals with disaster payments in the wake of the floods. All in all, the economic outlook of Australia looks gloomy.

Despite this, Treasurer Jim Chalmers said, ‘Our economy is expected to grow solidly this financial year, by three and a quarter per cent, before slowing to one and a half per cent growth for 2023-24, a full percentage point lower than what was forecast in March.’

‘The worst thing that we could do is contribute to even higher inflation,’ Chalmers said. ‘We don’t want cost-of-living relief to be counter-productive. The best thing we can do now is exercise restraint.’

$65.7 million in funding has been set aside for government agencies including the Australian Competition and Consumer Commission (ACCC) to regulate the gas and electricity industries. Currently, it’s expected that prices will increase by up to 58 per cent in the coming year (20 per cent increase by Christmas and approximately 30 per cent in the coming financial year).

‘I'm not going to pretend that we're not worried about these electricity price forecasts,’ Chalmers told reporters.

‘I think any responsible government, facing these kinds of price hikes for electricity and gas, needs to consider a broader suite of regulatory interventions,’ he said, making it clear his preference is for legislation, rather than cash splash spending programs.

Working Pensioners and Self-Funded Retirees

Those of you on the age and service pensions can finally earn additional wages before seeing your payments cut.

Working pensioners can now earn an extra $4000 as a one-off this financial year before their payments are reduced. This is a rise in allowed earnings from the previous $7800 to $11,800.

This kicks in from 1 December 2022 and eligible pensioners will have their Work Bonus Income Bank credited until 30 June 2023.

Subject to passage of legislation, Age Pension and equivalent Department of Veterans’ Affairs pension recipients with employment income who exceed the income limit will have their payment suspended for up to two years, rather than cancelled after 12 weeks as is currently the case.

They will also be able to keep their Pensioner Concession Card, and associated benefits, for up to two years.

Almost $70 million has been allocated to increase the income threshold for the seniors’ health card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

This higher income threshold is expected to also give more than 50,000 self-funded retirees access to the Commonwealth Seniors Health Card (CSHC).

Housing affordability

As predicted, the National Housing Accord plans for one million affordable houses. This will kick in from 2024 so don’t expect anything anytime soon.

But while building 1 million homes in five years sounds unrealistic, the ABC reports that 985,085 houses were built in the five years prior to March 2022.

‘The budget also includes $350 million for the federal government and states and territories to build 10,000 new homes each year.’ states the ABC.

Older Australians will also continue to be encouraged to downsize their homes and $74 million has been pledged to support this.

The budget will expand the exemption of home sale proceeds from pension asset testing from 12 months to 24 months. This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

The lower deeming rate (0.25 per cent) will still apply. This rate lower deeming rate will also remain frozen at 0.25 per cent. The upper rate will remain at 2.25 per cent for the next two years (until 30 June 2024).

View attachment 7809

Prime Minister Anthony Albanese congratulates Jim Chalmers on his first budget. Image Credit: ABC News: Nick Haggarty

​

Health care

From January 1, 2023 the maximum general co-payment for Pharmaceutical Benefits Scheme (PBS) medication lowered to $30 per script (from $42.50). The government expects this will save around 3.6 million Australians more than $190 million in out-of-pocket costs.

The bad news? Concession card holders already pay a lower $6.80 co-payment and this figure is not set to change anytime soon. So is this PBS reform even helping the right people? You can read more here.

Funding does, however, include Flash Glucose Monitoring and Continuous Glucose Monitoring devices which is good news for Australians living with Type 1 Diabetes. $327.7 million has been confirmed over 4 years from 2022–2023 so we can expect this to come into effect ASAP. More information is due to be released soon.

$114 million will go to additional mental health and suicide prevention initiatives, including $47.7m to restore the loading for Medicare subsidised online psychiatry consultations and a $23.5m expansion of the headspace network.

Cancer patients and their families, medical professionals, and researchers will benefit from $452 million to deliver new Comprehensive Cancer Centres in Adelaide and Brisbane. Meanwhile, $14.8 million in funding will establish a Melanoma Nurses Program across Australia.

Finally, preparatory work to establish an Australian Centre for Disease Control will begin with $3.2 million in funding.


Aged Care

The budget shows a commitment to improve safety, dignity, quality and humanity in the aged care sector.

‘This Budget builds on the recommendations of the aged care royal commission and implements the government’s federal election commitments to further reform aged care,’ says Ian Yates, Council on the Ageing CEO.

A $3.9 billion investment in this budget will implement reforms that meet the needs of aged care recipients.

How will the $3.9 billion package be spent?

• $2.5 billion towards 24/7 nurses and increased care minutes
• $48.6 million towards establishing Aged Care Complaints Commissioner and the Inspector-General of Aged Care
• $312.6 million towards improved information and communication technology

From 1 July 2023, aged care residents will benefit from the new requirement for aged care homes to have a registered nurse on site at all times. That’s right, at least one registered nurse must be on site 24 hours a day, seven days a week.

For Australians who wish to be independent and remain living in their own home, reforms to in-home aged care will start from 1 July 2024. Existing in-home aged care programs will continue until this time. You can read more about the existing in-home care packages here.

There is also greater support for young Australians interested in studying aged care such as free TAFE courses. In time, this should increase the available staff in a struggling industry.

Bottom line

While the current budget will decrease overall debt in the next few years and basically halve the deficit, overall Australia’s borrowings are expected to surpass $1 trillion by June 2024. Ultimately, the pension rate and CPI increases are not keeping pace with inflation.

As member @Qwarkus aptly summarised, 'The supermarket trolley holds less every week.'

Anything else of interest?

I’m glad you asked! Other main winners from the budget include the $4.7 billion confirmed spending on childcare, $530 million for paid parental leave and $852 million for vocational education.

Did you tune into the budget, members? Did the government meet your expectations? This is Labor’s first federal budget since 2013 so we’d love to hear from you directly. Let us know in the comments below

 

[Macarj]

I'm concerned most of the above comments are political which makes no sense either side of politics would probably done the same budget. As far as utility prices go the government of 30 plus years ago should never have sold utilities and that is both sides of government they sold them for a quick buck thereby losing control of prices

 

[donellefeltham@ gmail.com]

After the latest rise in the DSP I thought I was getting ahead until Homeswest raised the rent I pay so now I am left with the magnificent sum of $1.20 extra per fortnight. Oh well - back to eating 1 meal every 2nd day!

The Government could help we pensioner’s in State Housing by giving us back the rent we have to out of our Pension Supplements. Up until about 10 years ago, we only paid rent on our Basic Pension and then when the Barnett Liberal Premiere decided in 1 feld sweep to start charging us rent on our UTILITIES AND PENSION SUPPLEMENTS, we immediately lost $20 a fortnight. If the Government scrapped this we would immediately be in a better position. The Barnett Government said it was too go to the maintenance of our home’s and to that I say what maintenance. While I’m grateful to have my home of 19 years, it’s a lovely Villa but they scraped the painting of our home’s which before this they used to paint the Outside every 10 year’s and the inside every 15 years. Now we are responsible for this, Private Rental owners have to pay for this and any other maintenance that is needed so as our Landlord’s they should also be responsible for the maintenance of our home’s. Unless it is an emergency and I’ll give you an example, I have been waiting for 18 months to get a new key for my back sliding door and I know my neighbour’s have also been waiting for what they call non urgent maintenance. I could go on but again I say what maintenance, it’s about time time they lifted their game.

 

[Macarj]

I really can't see why anybody should be left or right of politics I vote on who I think might be the best for all Australians

 

[BobR]

I always believe we get the governments we deserve. We vote them in on their promises we are given and that in many cases are impossible to keep. I live in the richest state with a government with no opposition and as they say power corrupts and absolute power corrupts absolutely. A disastrous health system, as in all states, a lack of affordable housing, as in all states, and we have builders build substandard housing designed to last 6 years and then they are untouchable, Government legislation protects them because the inspectors use the legislation to refuse to prosecute them for their lies they knowingly perpetrate when they declare that they meet the standards.

 

[Morgana]

He's still managed to:
Dish out $75 million for the voice to parliament, to create apartheid and segregation.

Find money to bring back the IS brides and their numerous children, a threat to our national security. The women, will constantly scrounge off the taxpayer, as they're unemployable.

Send money and troops to Ukraine.

Give all immigrants immediate accommodation and $6.000 to each man, woman and child, while Australian families are sleeping on the streets.

Non-indigenous Australians get nothing. Albo, is too blind to see and too deaf to hear, that Australian families are being kicked from pillar to post, with prices of everything rising, including interest rates.

He's found money to push his Green madness with the Greens and Teals.

There's money for Andrews' Moderna factory, to produce enough poison for everyone, except the parliamentarians, the judiciary and their chosen few. Poison the CEOs of the companies producing it, have refused to take.

He's too busy telling his story, of how he was brought up by a single mother, as if he's the only one in the world, who's done it tough.

People are sick of hearing his story. If he did it tough, he'd be more sympathetic towards the Australians doing it tough and suffering.

 

[Aventine]

The vast expenditure on the few Terrorist relations was never mentioned the breaking of the energy price promise with only obfuscation is appalling and further money mot needed for Aboriginal issues for the wealthy and rich inner city bureaucracy is as Sen Jacinta Price said not likely to impact any teal
Needs!
A very bad anc and dishonest budget that bodes badly for our country!

 

[Aventine]

He's still managed to:
Dish out $75 million for the voice to parliament, to create apartheid and segregation.

Find money to bring back the IS brides and their numerous children, a threat to our national security. The women, will constantly scrounge off the taxpayer, as they're unemployable.

Send money and troops to Ukraine.

Give all immigrants immediate accommodation and $6.000 to each man, woman and child, while Australian families are sleeping on the streets.

Non-indigenous Australians get nothing. Albo, is too blind to see and too deaf to hear, that Australian families are being kicked from pillar to post, with prices of everything rising, including interest rates.

He's found money to push his Green madness with the Greens and Teals.

There's money for Andrews' Moderna factory, to produce enough poison for everyone, except the parliamentarians, the judiciary and their chosen few. Poison the CEOs of the companies producing it, have refused to take.

He's too busy telling his story, of how he was brought up by a single mother, as if he's the only one in the world, who's done it tough.

People are sick of hearing his story. If he did it tough, he'd be more sympathetic towards the Australians doing it tough and suffering.

Excellent comment scream at the dispatch box and helping his aligned mate Daniel Andrews is not good governance!
Keating said this is the recession we had to have ALBO and the Greens and Teals say this is the energy crisis you have to have and Bowen as he said in the last election if you don’t like it don’t vote for us is doing this Re renewables!
Teals have more disposable income than they know what to do with !

 

[fredwho]

It was a dreadful budget, typical of the Labor government. They will absolutely ruin this country alongside the greens. We won’t be able to eat soon the way food prices are going and I’m glad I have Solar and live in far north QLD as those down south will be freezing in winter - they won’t be able to afford electricity! He rid of the Greens and Labor!

tell me where i can get a job i am 82 years old

 

[OLdWayne]

2022-3 Federal Budget: What does it mean for you?​

Yesterday, we looked at the available budget information and what we could expect in terms of support for pensioners. There are a few surprises here and there so stay tuned for everything you need to know.

Well, the Albanese government's first federal budget has officially been released and the question on everyone’s lips is: what does it mean for pensioners? And on a personal level, what does it mean for you?

View attachment 7808

How did pensioners fare in this federal budget? Image Credit: Shutterstock

Cost of living

Unfortunately, members, this isn’t great news.

‘This budget makes hard decisions for hard times,’ Chalmers said in his budget speech.

Further global economic downturn is expected as the government responds to inflation and deals with disaster payments in the wake of the floods. All in all, the economic outlook of Australia looks gloomy.

Despite this, Treasurer Jim Chalmers said, ‘Our economy is expected to grow solidly this financial year, by three and a quarter per cent, before slowing to one and a half per cent growth for 2023-24, a full percentage point lower than what was forecast in March.’

‘The worst thing that we could do is contribute to even higher inflation,’ Chalmers said. ‘We don’t want cost-of-living relief to be counter-productive. The best thing we can do now is exercise restraint.’

$65.7 million in funding has been set aside for government agencies including the Australian Competition and Consumer Commission (ACCC) to regulate the gas and electricity industries. Currently, it’s expected that prices will increase by up to 58 per cent in the coming year (20 per cent increase by Christmas and approximately 30 per cent in the coming financial year).

‘I'm not going to pretend that we're not worried about these electricity price forecasts,’ Chalmers told reporters.

‘I think any responsible government, facing these kinds of price hikes for electricity and gas, needs to consider a broader suite of regulatory interventions,’ he said, making it clear his preference is for legislation, rather than cash splash spending programs.

Working Pensioners and Self-Funded Retirees

Those of you on the age and service pensions can finally earn additional wages before seeing your payments cut.

Working pensioners can now earn an extra $4000 as a one-off this financial year before their payments are reduced. This is a rise in allowed earnings from the previous $7800 to $11,800.

This kicks in from 1 December 2022 and eligible pensioners will have their Work Bonus Income Bank credited until 30 June 2023.

Subject to passage of legislation, Age Pension and equivalent Department of Veterans’ Affairs pension recipients with employment income who exceed the income limit will have their payment suspended for up to two years, rather than cancelled after 12 weeks as is currently the case.

They will also be able to keep their Pensioner Concession Card, and associated benefits, for up to two years.

Almost $70 million has been allocated to increase the income threshold for the seniors’ health card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

This higher income threshold is expected to also give more than 50,000 self-funded retirees access to the Commonwealth Seniors Health Card (CSHC).

Housing affordability

As predicted, the National Housing Accord plans for one million affordable houses. This will kick in from 2024 so don’t expect anything anytime soon.

But while building 1 million homes in five years sounds unrealistic, the ABC reports that 985,085 houses were built in the five years prior to March 2022.

‘The budget also includes $350 million for the federal government and states and territories to build 10,000 new homes each year.’ states the ABC.

Older Australians will also continue to be encouraged to downsize their homes and $74 million has been pledged to support this.

The budget will expand the exemption of home sale proceeds from pension asset testing from 12 months to 24 months. This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

The lower deeming rate (0.25 per cent) will still apply. This rate lower deeming rate will also remain frozen at 0.25 per cent. The upper rate will remain at 2.25 per cent for the next two years (until 30 June 2024).

View attachment 7809

Prime Minister Anthony Albanese congratulates Jim Chalmers on his first budget. Image Credit: ABC News: Nick Haggarty

​

Health care

From January 1, 2023 the maximum general co-payment for Pharmaceutical Benefits Scheme (PBS) medication lowered to $30 per script (from $42.50). The government expects this will save around 3.6 million Australians more than $190 million in out-of-pocket costs.

The bad news? Concession card holders already pay a lower $6.80 co-payment and this figure is not set to change anytime soon. So is this PBS reform even helping the right people? You can read more here.

Funding does, however, include Flash Glucose Monitoring and Continuous Glucose Monitoring devices which is good news for Australians living with Type 1 Diabetes. $327.7 million has been confirmed over 4 years from 2022–2023 so we can expect this to come into effect ASAP. More information is due to be released soon.

$114 million will go to additional mental health and suicide prevention initiatives, including $47.7m to restore the loading for Medicare subsidised online psychiatry consultations and a $23.5m expansion of the headspace network.

Cancer patients and their families, medical professionals, and researchers will benefit from $452 million to deliver new Comprehensive Cancer Centres in Adelaide and Brisbane. Meanwhile, $14.8 million in funding will establish a Melanoma Nurses Program across Australia.

Finally, preparatory work to establish an Australian Centre for Disease Control will begin with $3.2 million in funding.


Aged Care

The budget shows a commitment to improve safety, dignity, quality and humanity in the aged care sector.

‘This Budget builds on the recommendations of the aged care royal commission and implements the government’s federal election commitments to further reform aged care,’ says Ian Yates, Council on the Ageing CEO.

A $3.9 billion investment in this budget will implement reforms that meet the needs of aged care recipients.

How will the $3.9 billion package be spent?

• $2.5 billion towards 24/7 nurses and increased care minutes
• $48.6 million towards establishing Aged Care Complaints Commissioner and the Inspector-General of Aged Care
• $312.6 million towards improved information and communication technology

From 1 July 2023, aged care residents will benefit from the new requirement for aged care homes to have a registered nurse on site at all times. That’s right, at least one registered nurse must be on site 24 hours a day, seven days a week.

For Australians who wish to be independent and remain living in their own home, reforms to in-home aged care will start from 1 July 2024. Existing in-home aged care programs will continue until this time. You can read more about the existing in-home care packages here.

There is also greater support for young Australians interested in studying aged care such as free TAFE courses. In time, this should increase the available staff in a struggling industry.

Bottom line

While the current budget will decrease overall debt in the next few years and basically halve the deficit, overall Australia’s borrowings are expected to surpass $1 trillion by June 2024. Ultimately, the pension rate and CPI increases are not keeping pace with inflation.

As member @Qwarkus aptly summarised, 'The supermarket trolley holds less every week.'

Anything else of interest?

I’m glad you asked! Other main winners from the budget include the $4.7 billion confirmed spending on childcare, $530 million for paid parental leave and $852 million for vocational education.

Did you tune into the budget, members? Did the government meet your expectations? This is Labor’s first federal budget since 2013 so we’d love to hear from you directly. Let us know in the comments below!

Well, Chalmers, your big statement that pensioners have never been able to catch up with inflation was absolutely spot on. What you didn't add was who are you to change that? Spend absolutely millions on electric car subsidies, charging stations, and renewables are such a champion investment and priority that you are willing to destroy the well-being of pensioners to make you labour morons and greens look good.
You have however given us an out when we cannot pay our bills. We can go back to work or sell our house and downsize because you had the foresight to increase our earning capacity or relax the exemption of home sale proceeds from pension asset testing from 12 months to 24 months.
The no L for labour or G for greens was intentional.

Typical of labour party promise to get pensions to a better level to gain votes, then blame the previous government for overspending during the covid isolation to keep us all safe until we had vaccines that protected us. I trust a federal labour government far less than liberal, unfortunatly Morrison was not a leader. There is nothing in the budget for me. The recent pension rise even though a higher $ value than is the past was determined by the old formula related to CPI so nothing really changed. Just hoping for a change in determining the next pension adjustment.

 

[Greatgwr]

Well I thought the budget was pretty much what i expected, Labor has much cleaning up to do, it was fairly obvious back in 2015 that this was where we were heading and that was reinforced in 2019 with the Liberal win ???? so we decided to prepare, we installed a new larger solar system with battery backup we increased our rainwater capacity and purchased a Plug in Hybrid vehicle (we were due for a new car) our utility bills for water and electricity last year was approximately $650.00 in total. We grow most of our own food and we live comfortably on Jobseeker at $619.00 each per fortnight I look forward to getting a pension in a few weeks with the attached pay rise. Whining and moaning about the budget serves no purpose JOE HOCKEY made it very clear in 2013 what the value of pensioners was, I heeded the warning and am now comfortable, we all had the opportunity to act if you didn't and want to blame someone LOOK IN THE MIRROR.

 

[Morgana]

tell me where i can get a job i am 82 years old

Not while The government's bringing in more immigrants than there is place for and is trying to get the oldies off the pension, so they can completely do away with it.

 

[Gooze]

2022-3 Federal Budget: What does it mean for you?​

Yesterday, we looked at the available budget information and what we could expect in terms of support for pensioners. There are a few surprises here and there so stay tuned for everything you need to know.

Well, the Albanese government's first federal budget has officially been released and the question on everyone’s lips is: what does it mean for pensioners? And on a personal level, what does it mean for you?

View attachment 7808

How did pensioners fare in this federal budget? Image Credit: Shutterstock

Cost of living

Unfortunately, members, this isn’t great news.

‘This budget makes hard decisions for hard times,’ Chalmers said in his budget speech.

Further global economic downturn is expected as the government responds to inflation and deals with disaster payments in the wake of the floods. All in all, the economic outlook of Australia looks gloomy.

Despite this, Treasurer Jim Chalmers said, ‘Our economy is expected to grow solidly this financial year, by three and a quarter per cent, before slowing to one and a half per cent growth for 2023-24, a full percentage point lower than what was forecast in March.’

‘The worst thing that we could do is contribute to even higher inflation,’ Chalmers said. ‘We don’t want cost-of-living relief to be counter-productive. The best thing we can do now is exercise restraint.’

$65.7 million in funding has been set aside for government agencies including the Australian Competition and Consumer Commission (ACCC) to regulate the gas and electricity industries. Currently, it’s expected that prices will increase by up to 58 per cent in the coming year (20 per cent increase by Christmas and approximately 30 per cent in the coming financial year).

‘I'm not going to pretend that we're not worried about these electricity price forecasts,’ Chalmers told reporters.

‘I think any responsible government, facing these kinds of price hikes for electricity and gas, needs to consider a broader suite of regulatory interventions,’ he said, making it clear his preference is for legislation, rather than cash splash spending programs.

Working Pensioners and Self-Funded Retirees

Those of you on the age and service pensions can finally earn additional wages before seeing your payments cut.

Working pensioners can now earn an extra $4000 as a one-off this financial year before their payments are reduced. This is a rise in allowed earnings from the previous $7800 to $11,800.

This kicks in from 1 December 2022 and eligible pensioners will have their Work Bonus Income Bank credited until 30 June 2023.

Subject to passage of legislation, Age Pension and equivalent Department of Veterans’ Affairs pension recipients with employment income who exceed the income limit will have their payment suspended for up to two years, rather than cancelled after 12 weeks as is currently the case.

They will also be able to keep their Pensioner Concession Card, and associated benefits, for up to two years.

Almost $70 million has been allocated to increase the income threshold for the seniors’ health card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

This higher income threshold is expected to also give more than 50,000 self-funded retirees access to the Commonwealth Seniors Health Card (CSHC).

Housing affordability

As predicted, the National Housing Accord plans for one million affordable houses. This will kick in from 2024 so don’t expect anything anytime soon.

But while building 1 million homes in five years sounds unrealistic, the ABC reports that 985,085 houses were built in the five years prior to March 2022.

‘The budget also includes $350 million for the federal government and states and territories to build 10,000 new homes each year.’ states the ABC.

Older Australians will also continue to be encouraged to downsize their homes and $74 million has been pledged to support this.

The budget will expand the exemption of home sale proceeds from pension asset testing from 12 months to 24 months. This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

The lower deeming rate (0.25 per cent) will still apply. This rate lower deeming rate will also remain frozen at 0.25 per cent. The upper rate will remain at 2.25 per cent for the next two years (until 30 June 2024).

View attachment 7809

Prime Minister Anthony Albanese congratulates Jim Chalmers on his first budget. Image Credit: ABC News: Nick Haggarty

​

Health care

From January 1, 2023 the maximum general co-payment for Pharmaceutical Benefits Scheme (PBS) medication lowered to $30 per script (from $42.50). The government expects this will save around 3.6 million Australians more than $190 million in out-of-pocket costs.

The bad news? Concession card holders already pay a lower $6.80 co-payment and this figure is not set to change anytime soon. So is this PBS reform even helping the right people? You can read more here.

Funding does, however, include Flash Glucose Monitoring and Continuous Glucose Monitoring devices which is good news for Australians living with Type 1 Diabetes. $327.7 million has been confirmed over 4 years from 2022–2023 so we can expect this to come into effect ASAP. More information is due to be released soon.

$114 million will go to additional mental health and suicide prevention initiatives, including $47.7m to restore the loading for Medicare subsidised online psychiatry consultations and a $23.5m expansion of the headspace network.

Cancer patients and their families, medical professionals, and researchers will benefit from $452 million to deliver new Comprehensive Cancer Centres in Adelaide and Brisbane. Meanwhile, $14.8 million in funding will establish a Melanoma Nurses Program across Australia.

Finally, preparatory work to establish an Australian Centre for Disease Control will begin with $3.2 million in funding.


Aged Care

The budget shows a commitment to improve safety, dignity, quality and humanity in the aged care sector.

‘This Budget builds on the recommendations of the aged care royal commission and implements the government’s federal election commitments to further reform aged care,’ says Ian Yates, Council on the Ageing CEO.

A $3.9 billion investment in this budget will implement reforms that meet the needs of aged care recipients.

How will the $3.9 billion package be spent?

• $2.5 billion towards 24/7 nurses and increased care minutes
• $48.6 million towards establishing Aged Care Complaints Commissioner and the Inspector-General of Aged Care
• $312.6 million towards improved information and communication technology

From 1 July 2023, aged care residents will benefit from the new requirement for aged care homes to have a registered nurse on site at all times. That’s right, at least one registered nurse must be on site 24 hours a day, seven days a week.

For Australians who wish to be independent and remain living in their own home, reforms to in-home aged care will start from 1 July 2024. Existing in-home aged care programs will continue until this time. You can read more about the existing in-home care packages here.

There is also greater support for young Australians interested in studying aged care such as free TAFE courses. In time, this should increase the available staff in a struggling industry.

Bottom line

While the current budget will decrease overall debt in the next few years and basically halve the deficit, overall Australia’s borrowings are expected to surpass $1 trillion by June 2024. Ultimately, the pension rate and CPI increases are not keeping pace with inflation.

As member @Qwarkus aptly summarised, 'The supermarket trolley holds less every week.'

Anything else of interest?

I’m glad you asked! Other main winners from the budget include the $4.7 billion confirmed spending on childcare, $530 million for paid parental leave and $852 million for vocational education.

Did you tune into the budget, members? Did the government meet you expectations? This is Labor’s first federal budget since 2013 so we’d love to hear from you directly. Let us know in the comments below!

They do the best they can. How lucky are we to live in this wonderful country

 

[DI Booth]

2022-3 Federal Budget: What does it mean for you?​

Yesterday, we looked at the available budget information and what we could expect in terms of support for pensioners. There are a few surprises here and there so stay tuned for everything you need to know.

Well, the Albanese government's first federal budget has officially been released and the question on everyone’s lips is: what does it mean for pensioners? And on a personal level, what does it mean for you?

View attachment 7808

How did pensioners fare in this federal budget? Image Credit: Shutterstock

Cost of living

Unfortunately, members, this isn’t great news.

‘This budget makes hard decisions for hard times,’ Chalmers said in his budget speech.

Further global economic downturn is expected as the government responds to inflation and deals with disaster payments in the wake of the floods. All in all, the economic outlook of Australia looks gloomy.

Despite this, Treasurer Jim Chalmers said, ‘Our economy is expected to grow solidly this financial year, by three and a quarter per cent, before slowing to one and a half per cent growth for 2023-24, a full percentage point lower than what was forecast in March.’

‘The worst thing that we could do is contribute to even higher inflation,’ Chalmers said. ‘We don’t want cost-of-living relief to be counter-productive. The best thing we can do now is exercise restraint.’

$65.7 million in funding has been set aside for government agencies including the Australian Competition and Consumer Commission (ACCC) to regulate the gas and electricity industries. Currently, it’s expected that prices will increase by up to 58 per cent in the coming year (20 per cent increase by Christmas and approximately 30 per cent in the coming financial year).

‘I'm not going to pretend that we're not worried about these electricity price forecasts,’ Chalmers told reporters.

‘I think any responsible government, facing these kinds of price hikes for electricity and gas, needs to consider a broader suite of regulatory interventions,’ he said, making it clear his preference is for legislation, rather than cash splash spending programs.

Working Pensioners and Self-Funded Retirees

Those of you on the age and service pensions can finally earn additional wages before seeing your payments cut.

Working pensioners can now earn an extra $4000 as a one-off this financial year before their payments are reduced. This is a rise in allowed earnings from the previous $7800 to $11,800.

This kicks in from 1 December 2022 and eligible pensioners will have their Work Bonus Income Bank credited until 30 June 2023.

Subject to passage of legislation, Age Pension and equivalent Department of Veterans’ Affairs pension recipients with employment income who exceed the income limit will have their payment suspended for up to two years, rather than cancelled after 12 weeks as is currently the case.

They will also be able to keep their Pensioner Concession Card, and associated benefits, for up to two years.

Almost $70 million has been allocated to increase the income threshold for the seniors’ health card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

This higher income threshold is expected to also give more than 50,000 self-funded retirees access to the Commonwealth Seniors Health Card (CSHC).

Housing affordability

As predicted, the National Housing Accord plans for one million affordable houses. This will kick in from 2024 so don’t expect anything anytime soon.

But while building 1 million homes in five years sounds unrealistic, the ABC reports that 985,085 houses were built in the five years prior to March 2022.

‘The budget also includes $350 million for the federal government and states and territories to build 10,000 new homes each year.’ states the ABC.

Older Australians will also continue to be encouraged to downsize their homes and $74 million has been pledged to support this.

The budget will expand the exemption of home sale proceeds from pension asset testing from 12 months to 24 months. This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

The lower deeming rate (0.25 per cent) will still apply. This rate lower deeming rate will also remain frozen at 0.25 per cent. The upper rate will remain at 2.25 per cent for the next two years (until 30 June 2024).

View attachment 7809

Prime Minister Anthony Albanese congratulates Jim Chalmers on his first budget. Image Credit: ABC News: Nick Haggarty

​

Health care

From January 1, 2023 the maximum general co-payment for Pharmaceutical Benefits Scheme (PBS) medication lowered to $30 per script (from $42.50). The government expects this will save around 3.6 million Australians more than $190 million in out-of-pocket costs.

The bad news? Concession card holders already pay a lower $6.80 co-payment and this figure is not set to change anytime soon. So is this PBS reform even helping the right people? You can read more here.

Funding does, however, include Flash Glucose Monitoring and Continuous Glucose Monitoring devices which is good news for Australians living with Type 1 Diabetes. $327.7 million has been confirmed over 4 years from 2022–2023 so we can expect this to come into effect ASAP. More information is due to be released soon.

$114 million will go to additional mental health and suicide prevention initiatives, including $47.7m to restore the loading for Medicare subsidised online psychiatry consultations and a $23.5m expansion of the headspace network.

Cancer patients and their families, medical professionals, and researchers will benefit from $452 million to deliver new Comprehensive Cancer Centres in Adelaide and Brisbane. Meanwhile, $14.8 million in funding will establish a Melanoma Nurses Program across Australia.

Finally, preparatory work to establish an Australian Centre for Disease Control will begin with $3.2 million in funding.


Aged Care

The budget shows a commitment to improve safety, dignity, quality and humanity in the aged care sector.

‘This Budget builds on the recommendations of the aged care royal commission and implements the government’s federal election commitments to further reform aged care,’ says Ian Yates, Council on the Ageing CEO.

A $3.9 billion investment in this budget will implement reforms that meet the needs of aged care recipients.

How will the $3.9 billion package be spent?

• $2.5 billion towards 24/7 nurses and increased care minutes
• $48.6 million towards establishing Aged Care Complaints Commissioner and the Inspector-General of Aged Care
• $312.6 million towards improved information and communication technology

From 1 July 2023, aged care residents will benefit from the new requirement for aged care homes to have a registered nurse on site at all times. That’s right, at least one registered nurse must be on site 24 hours a day, seven days a week.

For Australians who wish to be independent and remain living in their own home, reforms to in-home aged care will start from 1 July 2024. Existing in-home aged care programs will continue until this time. You can read more about the existing in-home care packages here.

There is also greater support for young Australians interested in studying aged care such as free TAFE courses. In time, this should increase the available staff in a struggling industry.

Bottom line

While the current budget will decrease overall debt in the next few years and basically halve the deficit, overall Australia’s borrowings are expected to surpass $1 trillion by June 2024. Ultimately, the pension rate and CPI increases are not keeping pace with inflation.

As member @Qwarkus aptly summarised, 'The supermarket trolley holds less every week.'

Anything else of interest?

I’m glad you asked! Other main winners from the budget include the $4.7 billion confirmed spending on childcare, $530 million for paid parental leave and $852 million for vocational education.

Did you tune into the budget, members? Did the government meet your expectations? This is Labor’s first federal budget since 2013 so we’d love to hear from you directly. Let us know in the comments below!

Hello ... are you able to do something about the Federal Government & State Government making a higher percentage of doctors bulk-bill us Disability Pensioners? Since 1 July 2022, doctors are not bulk-billing anyone & it is expensive for one living on a small pension. Also, hospitals & ambulances are being over-extended BECAUSE people won't pay to see a doctor & instead go to their hospital. It's disgusting ... I've been living on disability since 2007 & my money is dwindling! Thank you D.G. Booth ... [email protected]

 

[April Bradford]

H

Hello ... are you able to do something about the Federal Government & State Government making a higher percentage of doctors bulk-bill us Disability Pensioners? Since 1 July 2022, doctors are not bulk-billing anyone & it is expensive for one living on a small pension. Also, hospitals & ambulances are being over-extended BECAUSE people won't pay to see a doctor & instead go to their hospital. It's disgusting ... I've been living on disability since 2007 & my money is dwindling! Thank you D.G. Booth ... [email protected]

Hi @DI Booth! We wrote a piece discussing the shift away from bulk-billing here. This is also a way to find any bulk-billing doctors in your area. I hope this helps!