When we say we want to hear from you, we mean it! Before we take a look at the pension reactions directly from your fellow members, we want to quickly pause and reflect on this quote.

‘One voice can change a room, and if one voice can change a room, then it can change a city, and if it can change a city, it can change a state, and if it can change a state, it can change a nation, and if it can change a nation, it can change the world. Your voice can change the world.’
― Barak Obama

Thank you to everyone who shared their thoughts. Image Credit: Shutterstock

Without further ado, here are some SDC members' comments on the latest Federal Budget.

@Qwarkus: ‘Cut the BS. Pensioners are NOT winning big in this budget. In fact, we are (as usual) losing ground. The CPI incremental increases do not keep up with inflation. We can no longer do as much with our pensions as we could just 5 years ago. The supermarket trolley holds less every week.’

@Lotty made an interesting point, stating: ‘Morison government changed pension indexation from percentage of average earning to inflation so the increase to pension is lower.’

@peter clear: ‘They are putting it all aside to guarantee future C.P.I. increases, we'll see diddly squat!!!’

This is certainly true - the government has emphasised that this was a ‘bread and butter’ budget that tried to minimise spending, which sadly minimises benefits and assistance to Australians.

@Franko: ‘In other words, nothing extra for pensioners. Indexation is enshrined in legislation and the biannual increase simply compensates us for the increase in costs that have gone before. Nobody can remember when there was last a REAL increase in pensions. So it still keeps us below the poverty line; just a little less below.’

@Andrew had thoughts on the recommendation for Australian seniors to downsize their homes: ‘I strongly object to being told to downsize my home. We actually "Upsized" as with a growing number of grandchildren our original house was too small to accommodate everyone for a family gathering. Why should we give up something we have worked long and hard for? How many politicians are willing to downsize homes?.’

So, do members expect anything to change in their life as a result? Let’s see.

@Rob44: ‘An increase of $29.40. Ah well, that's an extra kilo of steak per fortnight. Or was it just lean steak mince?’

@wazezy: ‘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!’

Member @BJM agreed: ‘I can’t justify why electricity rates are soaring. It’s been said there will be another rise between 25-30%. My state government discounts around $80 + each quarterly bill for aged pensioners (Thankyou). The current quarter sees a rise of approximately $1 /day which is $90 + for the quarter. With the next increase of 25-30%, it will take the quarterly bill up another $90 or so. I have a smart meter so I can follow daily usage and cost. This means that over 6 months (2 bills) the total cost will have risen by $180 +. How can seniors manage or anyone for that matter (maybe purchase less food)? The budget did not provide any relief in utility increases. Shame on them!!!!!’

@Bikkie mum: ‘No it didn’t do much for me as I am an aged pensioner. I own my home, have homecare every two weeks and a man to mow my lawn when it needs it. With electricity going up I will have to cut out air conditioning and keeping my phone charged up.’

@annvic wrote: ‘Yes! happy for aged care workers, and residential care workers. But not happy for Pensioners. We are hit left right and centre. We are cutting back as much as possible. There is only skin left on the bone!’

And offered a suggestion: ‘There should be an AUTOMATIC 10% DISCOUNT ON ALL PRODUCTS AND SERVICES FOR ALL PENSIONERS. Go to the supermarket and if your bill is $50 then you pay only $45. That's not so bad for supermarkets.’

And in a situation far too many members can relate to, @Les_D wrote: ‘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!’

In a previous article, we listed some food bank contacts for each state. If you are experiencing food insecurity, please reach out to your relevant state contact.

Finally, @elaine41 summed up our growing concerns: ‘I begin to wonder about how to survive on the basic age pension.’

I want to thank everyone who engaged in the budget conversation, either by sharing the articles with their friends, commenting or replying to other members.

Before I leave you, I do want to remind members that there are a range of resources available and you should never have to bear any burdens alone.

For a more comprehensive list, please check out this list of Mental Health Helplines we compiled.

If you haven’t had your say yet, members, as always, we would love to hear what you have to say in the comment section below!

 

[Jethrotull]

When we say we want to hear from you, we mean it! Before we take a look at the pension reactions directly from your fellow members, we want to quickly pause and reflect on this quote.

‘One voice can change a room, and if one voice can change a room, then it can change a city, and if it can change a city, it can change a state, and if it can change a state, it can change a nation, and if it can change a nation, it can change the world. Your voice can change the world.’
― Barak Obama

View attachment 7942

Thank you to everyone who shared their thoughts. Image Credit: Shutterstock

Without further ado, here are some SDC members' comments on the latest Federal Budget.

@Qwarkus: ‘Cut the BS. Pensioners are NOT winning big in this budget. In fact, we are (as usual) losing ground. The CPI incremental increases do not keep up with inflation. We can no longer do as much with our pensions as we could just 5 years ago. The supermarket trolley holds less every week.’

@Lotty made an interesting point, stating: ‘Morison government changed pension indexation from percentage of average earning to inflation so the increase to pension is lower.’

@peter clear: ‘They are putting it all aside to guarantee future C.P.I. increases, we'll see diddly squat!!!’

This is certainly true - the government has emphasised that this was a ‘bread and butter’ budget that tried to minimise spending, which sadly minimises benefits and assistance to Australians.

@Franko: ‘In other words, nothing extra for pensioners. Indexation is enshrined in legislation and the biannual increase simply compensates us for the increase in costs that have gone before. Nobody can remember when there was last a REAL increase in pensions. So it still keeps us below the poverty line; just a little less below.’

@Andrew had thoughts on the recommendation for Australian seniors to downsize their homes: ‘I strongly object to being told to downsize my home. We actually "Upsized" as with a growing number of grandchildren our original house was too small to accommodate everyone for a family gathering. Why should we give up something we have worked long and hard for? How many politicians are willing to downsize homes?.’

So, do members expect anything to change in their life as a result? Let’s see.

@Rob44: ‘An increase of $29.40. Ah well, that's an extra kilo of steak per fortnight. Or was it just lean steak mince?’

@wazezy: ‘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!’

Member @BJM agreed: ‘I can’t justify why electricity rates are soaring. It’s been said there will be another rise between 25-30%. My state government discounts around $80 + each quarterly bill for aged pensioners (Thankyou). The current quarter sees a rise of approximately $1 /day which is $90 + for the quarter. With the next increase of 25-30%, it will take the quarterly bill up another $90 or so. I have a smart meter so I can follow daily usage and cost. This means that over 6 months (2 bills) the total cost will have risen by $180 +. How can seniors manage or anyone for that matter (maybe purchase less food)? The budget did not provide any relief in utility increases. Shame on them!!!!!’

@Bikkie mum: ‘No it didn’t do much for me as I am an aged pensioner. I own my home, have homecare every two weeks and a man to mow my lawn when it needs it. With electricity going up I will have to cut out air conditioning and keeping my phone charged up.’

@annvic wrote: ‘Yes! happy for aged care workers, and residential care workers. But not happy for Pensioners. We are hit left right and centre. We are cutting back as much as possible. There is only skin left on the bone!’

And offered a suggestion: ‘There should be an AUTOMATIC 10% DISCOUNT ON ALL PRODUCTS AND SERVICES FOR ALL PENSIONERS. Go to the supermarket and if your bill is $50 then you pay only $45. That's not so bad for supermarkets.’

And in a situation far too many members can relate to, @Les_D wrote: ‘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!’

In a previous article, we listed some food bank contacts for each state. If you are experiencing food insecurity, please reach out to your relevant state contact.

Finally, @elaine41 summed up our growing concerns: ‘I begin to wonder about how to survive on the basic age pension.’

I want to thank everyone who engaged in the budget conversation, either by sharing the articles with their friends, commenting or replying to other members.

Before I leave you, I do want to remind members that there are a range of resources available and you should never have to bear any burdens alone.

For a more comprehensive list, please check out this list of Mental Health Helplines we compiled.

If you haven’t had your say yet, members, as always, we would love to hear what you have to say in the comment section below!

Typical politicians, they pee on your leg and tell you it’s raining!! How generous they are, we pensioners can know work more hours before our pensions are affected.. THE ONLY THING THESE CLOWNS FORGOT WAS HOW DO PENSIONERS GET A JOB… 98% of pensioners can’t just go out and find a job!!! And as many don’t want to have to work to survive.. WHAT A JOKE !!

 

[Izzabel]

When we say we want to hear from you, we mean it! Before we take a look at the pension reactions directly from your fellow members, we want to quickly pause and reflect on this quote.

‘One voice can change a room, and if one voice can change a room, then it can change a city, and if it can change a city, it can change a state, and if it can change a state, it can change a nation, and if it can change a nation, it can change the world. Your voice can change the world.’
― Barak Obama

View attachment 7942

Thank you to everyone who shared their thoughts. Image Credit: Shutterstock

Without further ado, here are some SDC members' comments on the latest Federal Budget.

@Qwarkus: ‘Cut the BS. Pensioners are NOT winning big in this budget. In fact, we are (as usual) losing ground. The CPI incremental increases do not keep up with inflation. We can no longer do as much with our pensions as we could just 5 years ago. The supermarket trolley holds less every week.’

@Lotty made an interesting point, stating: ‘Morison government changed pension indexation from percentage of average earning to inflation so the increase to pension is lower.’

@peter clear: ‘They are putting it all aside to guarantee future C.P.I. increases, we'll see diddly squat!!!’

This is certainly true - the government has emphasised that this was a ‘bread and butter’ budget that tried to minimise spending, which sadly minimises benefits and assistance to Australians.

@Franko: ‘In other words, nothing extra for pensioners. Indexation is enshrined in legislation and the biannual increase simply compensates us for the increase in costs that have gone before. Nobody can remember when there was last a REAL increase in pensions. So it still keeps us below the poverty line; just a little less below.’

@Andrew had thoughts on the recommendation for Australian seniors to downsize their homes: ‘I strongly object to being told to downsize my home. We actually "Upsized" as with a growing number of grandchildren our original house was too small to accommodate everyone for a family gathering. Why should we give up something we have worked long and hard for? How many politicians are willing to downsize homes?.’

So, do members expect anything to change in their life as a result? Let’s see.

@Rob44: ‘An increase of $29.40. Ah well, that's an extra kilo of steak per fortnight. Or was it just lean steak mince?’

@wazezy: ‘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!’

Member @BJM agreed: ‘I can’t justify why electricity rates are soaring. It’s been said there will be another rise between 25-30%. My state government discounts around $80 + each quarterly bill for aged pensioners (Thankyou). The current quarter sees a rise of approximately $1 /day which is $90 + for the quarter. With the next increase of 25-30%, it will take the quarterly bill up another $90 or so. I have a smart meter so I can follow daily usage and cost. This means that over 6 months (2 bills) the total cost will have risen by $180 +. How can seniors manage or anyone for that matter (maybe purchase less food)? The budget did not provide any relief in utility increases. Shame on them!!!!!’

@Bikkie mum: ‘No it didn’t do much for me as I am an aged pensioner. I own my home, have homecare every two weeks and a man to mow my lawn when it needs it. With electricity going up I will have to cut out air conditioning and keeping my phone charged up.’

@annvic wrote: ‘Yes! happy for aged care workers, and residential care workers. But not happy for Pensioners. We are hit left right and centre. We are cutting back as much as possible. There is only skin left on the bone!’

And offered a suggestion: ‘There should be an AUTOMATIC 10% DISCOUNT ON ALL PRODUCTS AND SERVICES FOR ALL PENSIONERS. Go to the supermarket and if your bill is $50 then you pay only $45. That's not so bad for supermarkets.’

And in a situation far too many members can relate to, @Les_D wrote: ‘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!’

In a previous article, we listed some food bank contacts for each state. If you are experiencing food insecurity, please reach out to your relevant state contact.

Finally, @elaine41 summed up our growing concerns: ‘I begin to wonder about how to survive on the basic age pension.’

I want to thank everyone who engaged in the budget conversation, either by sharing the articles with their friends, commenting or replying to other members.

Before I leave you, I do want to remind members that there are a range of resources available and you should never have to bear any burdens alone.

For a more comprehensive list, please check out this list of Mental Health Helplines we compiled.

If you haven’t had your say yet, members, as always, we would love to hear what you have to say in the comment section below!

It looks to me as if Albo is on a vote buying binge - getting in early. Why should peole get paid to have someone else look after their children, when they are earning money that could pay for the privilege of having the luxury of childcare. You choose to have children, then you choose to look after them. Pensioners have worked hard all their lives and raised a family without all the hand-outs. They have paid their taxes and now deserve something in return. There are thousands of people who have never paid a brass razoo in taxes because they are too lazy to get a job, and are happy to take all the hand-outs that the government will give them. Many of these recipients use this money on drugs, alcohol, cigarettes and gambling. Not a care in the world. And what about our veterans who are left to their own devices. They too deserve some consideration. I am over it.

 

[Vinylted]

We have homeless? beggars at the entrance to shopping centres etc, but when you see them sneaking a smoke, and using a phone... whaaaat Even if I wanted to I couldn't afford to smoke!.

 

[Jazza]

As usual older Australians are left to deal with rising costs and little else in the way of assistance - Groceries at supermarkets going up by $2 and then reduced by 50cents and we are told it's a bargain - Energy costs as usual are well and truly on their way skyward as usual and I am adding what seems to be the original reason for this - Thank you John Howard

WHY THE ENERGY COSTS ARE SO HIGH IN AUSTRALIA​

WHO WOULD HAVE THOUGHT?

Australian consumers face energy price hikes up to 50 per cent due to John Howard’s neoliberal scam four decades ago.

The shocking warning that already-sky high energy prices in Australia could soar by as much as 50 per cent in the next year has nothing to do with the conflict in Ukraine.

Any politician or journalist or economist who says it does is either ignorant or lying.

The official reason for the rise in energy prices is the rising global price of coal and especially gas.

Think about that for a minute: Australians are already paying through the nose, and expected to pay much more, for two commodities that Australia has in abundance, and of which we export enormous quantities … because of events in Eastern Europe?

No, Australians are paying the price for a government policy set more than 40 years ago that used economic ideology to justify ripping off Australians so resource multinationals could make bigger profits.

Here’s how it happened.

In 1978, Australia was self-sufficient enough in oil that local fuel prices were much lower than most of the rest of the world—the maximum petrol price in Australia was 21 cents per litre. By contrast, Italians were paying 49 cents per litre, the French and Japanese 44 cents, and consumers in the UK were paying 28 cents. By any measure this was a competitive advantage for Australia, but it was also the free market, where the prices reflected the actual cost of producing the fuel locally.

(The price of coal and gas was also based on local production costs and local demand, combined with the fact that all electricity utilities were state owned, as was the coal and gas, so the inputs were kept as cheap as possible.)

Then-Treasurer John Howard decided that Australians paying Australian prices for Australian petrol and diesel was a problem. He proposed that Australia should adopt “import-parity” pricing—local fuel prices should be set at what it costs to import fuel from overseas. There were two shameless ulterior motives for this proposal: more taxation revenue for the government; and more profits for the oil companies producing oil in Australia. Howard just had to create an economic pretext to swing it.

According to an ABC Business report by Gareth Hutchens on 29 October 2021:

“But Mr Howard said Australian motorists were getting petrol too cheaply. He announced a plan that all Australian-produced crude oil would have to start being sold to local refineries at the same price as it cost to import crude oil from overseas. It meant consumers would have to start paying prices based on world oil prices; they’d no longer be able to enjoy cheap oil from their own domestic supply.”

This is what John Howard announced at the time: “Since the OPEC countries quadrupled the world price of crude oil in 1973-74, Australians have continued to enjoy artificially low prices for crude oil. While the rest of the world was facing up to the inescapable fact that the days of cheap energy were over, Australians—even after the imposition in the 1975-76 budget of a $2 per barrel production levy—were continuing to pay less than half of the world price for Australian-produced crude oil. Subsidised indigenous oil prices encouraged a wasteful use of a key energy resource and inhibited the adoption of more energy-efficient processes and technologies. In recognition of this the government moved last year towards a more realistic pricing policy for Australian-produced crude oil.” (Emphasis added.)

Yes, you saw that right: John Howard, of all people, used an ecological argument to justify his ideological economic attack on Australians paying a reasonable price for their own resource.

To underscore how ideological John Howard’s argument was, he went so far as to call the lower prices that Australians paid for fuel in 1978 “a subsidy to petroleum product users [car drivers] of some $800 million”—subsidy being a dirty word to neoliberals like Howard.

Just to be clear, however, there was no actual subsidy, as the domestic price was the market price based on the actual extraction cost of locally produced oil. John Howard invented a fictional “subsidy” argument by redefining the “market” as the world market, not the domestic market.

By convincing his colleagues to accept his bogus ideology, Howard was able to propose a tax to make Australians pay more for petrol, not for any genuine “market” reason, but so he could net the government an extra $676 million in fuel tax revenue in 1978-79, and generate a windfall for the Esso (Exxon-Mobil)-BHP oil drilling operation in the Bass Strait.

Esso-BHP’s Bass Strait production was extremely low-cost oil, and therefore already very profitable, but thereafter it raked in profits based on the much higher global oil prices.

Australians have been paying for it at the petrol bowser ever since.

Likewise, as gas and coal exports have grown, under the same ideology domestic users have been paying inflated global prices for those commodities too.

In fact, gas has become the biggest rip-off of all: Australia rivals Qatar as the world’s biggest liquefied natural gas exporter, but for many years now Australians have been paying more for our gas than what is paid by our export customers.

Ideologically twisted successive governments, including the current Albanese Labor government, have used the neoliberal objection to “government intervention” to stand by impotently as the gas cartel has extracted enormous export profits while denying Australians use of our own gas.

In the 12 October 2022 Australian Financial Review, Australian Workers Union (AWU) National Secretary Daniel Walton rightly demanded a government intervention:

“The government has a choice: defend the insane super profits that gas exporters are making from the Ukraine war or defend the future of Australian manufacturing and the hundreds of thousands of jobs it supports”, he said.

It’s our gas and our coal, and the Albanese government could slash all energy prices today by forcing the resource companies to charge our domestic prices.

 

[Vinylted]

Well said Jazza! The liberals spout on about how much money they amassed in the so called "future fund" all due to ripping us off from our own resources as you put so well.
The Howard/Costello rip off of ordinary Australians.

 

[Geoff8]

When we say we want to hear from you, we mean it! Before we take a look at the pension reactions directly from your fellow members, we want to quickly pause and reflect on this quote.

‘One voice can change a room, and if one voice can change a room, then it can change a city, and if it can change a city, it can change a state, and if it can change a state, it can change a nation, and if it can change a nation, it can change the world. Your voice can change the world.’
― Barak Obama

View attachment 7942

Thank you to everyone who shared their thoughts. Image Credit: Shutterstock

Without further ado, here are some SDC members' comments on the latest Federal Budget.

@Qwarkus: ‘Cut the BS. Pensioners are NOT winning big in this budget. In fact, we are (as usual) losing ground. The CPI incremental increases do not keep up with inflation. We can no longer do as much with our pensions as we could just 5 years ago. The supermarket trolley holds less every week.’

@Lotty made an interesting point, stating: ‘Morison government changed pension indexation from percentage of average earning to inflation so the increase to pension is lower.’

@peter clear: ‘They are putting it all aside to guarantee future C.P.I. increases, we'll see diddly squat!!!’

This is certainly true - the government has emphasised that this was a ‘bread and butter’ budget that tried to minimise spending, which sadly minimises benefits and assistance to Australians.

@Franko: ‘In other words, nothing extra for pensioners. Indexation is enshrined in legislation and the biannual increase simply compensates us for the increase in costs that have gone before. Nobody can remember when there was last a REAL increase in pensions. So it still keeps us below the poverty line; just a little less below.’

@Andrew had thoughts on the recommendation for Australian seniors to downsize their homes: ‘I strongly object to being told to downsize my home. We actually "Upsized" as with a growing number of grandchildren our original house was too small to accommodate everyone for a family gathering. Why should we give up something we have worked long and hard for? How many politicians are willing to downsize homes?.’

So, do members expect anything to change in their life as a result? Let’s see.

@Rob44: ‘An increase of $29.40. Ah well, that's an extra kilo of steak per fortnight. Or was it just lean steak mince?’

@wazezy: ‘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!’

Member @BJM agreed: ‘I can’t justify why electricity rates are soaring. It’s been said there will be another rise between 25-30%. My state government discounts around $80 + each quarterly bill for aged pensioners (Thankyou). The current quarter sees a rise of approximately $1 /day which is $90 + for the quarter. With the next increase of 25-30%, it will take the quarterly bill up another $90 or so. I have a smart meter so I can follow daily usage and cost. This means that over 6 months (2 bills) the total cost will have risen by $180 +. How can seniors manage or anyone for that matter (maybe purchase less food)? The budget did not provide any relief in utility increases. Shame on them!!!!!’

@Bikkie mum: ‘No it didn’t do much for me as I am an aged pensioner. I own my home, have homecare every two weeks and a man to mow my lawn when it needs it. With electricity going up I will have to cut out air conditioning and keeping my phone charged up.’

@annvic wrote: ‘Yes! happy for aged care workers, and residential care workers. But not happy for Pensioners. We are hit left right and centre. We are cutting back as much as possible. There is only skin left on the bone!’

And offered a suggestion: ‘There should be an AUTOMATIC 10% DISCOUNT ON ALL PRODUCTS AND SERVICES FOR ALL PENSIONERS. Go to the supermarket and if your bill is $50 then you pay only $45. That's not so bad for supermarkets.’

And in a situation far too many members can relate to, @Les_D wrote: ‘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!’

In a previous article, we listed some food bank contacts for each state. If you are experiencing food insecurity, please reach out to your relevant state contact.

Finally, @elaine41 summed up our growing concerns: ‘I begin to wonder about how to survive on the basic age pension.’

I want to thank everyone who engaged in the budget conversation, either by sharing the articles with their friends, commenting or replying to other members.

Before I leave you, I do want to remind members that there are a range of resources available and you should never have to bear any burdens alone.

For a more comprehensive list, please check out this list of Mental Health Helplines we compiled.

If you haven’t had your say yet, members, as always, we would love to hear what you have to say in the comment section below!

O.K now my question is , “What is the ACCC for? They do absolutely nothing except sit back and line their own pockets with the Govt subsidy to help fight “inflation, oil prices, petrol prices and power prices” it’s about time someone took them to task and get them off their fat arses and do something constructive.
If any one in the Govt had any brains they would do away with the ACCC and probably save a couple billion $ each year.
Power companies posted a profit of a huge amount this financial year so why do they have to keep putting it up?
Govt take I think 54% from the petrol sales and then add on the G.S.T when we pay for it.

 

[BRIAN KK]

As usual older Australians are left to deal with rising costs and little else in the way of assistance - Groceries at supermarkets going up by $2 and then reduced by 50cents and we are told it's a bargain - Energy costs as usual are well and truly on their way skyward as usual and I am adding what seems to be the original reason for this - Thank you John Howard

WHY THE ENERGY COSTS ARE SO HIGH IN AUSTRALIA​

WHO WOULD HAVE THOUGHT?

Australian consumers face energy price hikes up to 50 per cent due to John Howard’s neoliberal scam four decades ago.

The shocking warning that already-sky high energy prices in Australia could soar by as much as 50 per cent in the next year has nothing to do with the conflict in Ukraine.

Any politician or journalist or economist who says it does is either ignorant or lying.

The official reason for the rise in energy prices is the rising global price of coal and especially gas.

Think about that for a minute: Australians are already paying through the nose, and expected to pay much more, for two commodities that Australia has in abundance, and of which we export enormous quantities … because of events in Eastern Europe?

No, Australians are paying the price for a government policy set more than 40 years ago that used economic ideology to justify ripping off Australians so resource multinationals could make bigger profits.

Here’s how it happened.

In 1978, Australia was self-sufficient enough in oil that local fuel prices were much lower than most of the rest of the world—the maximum petrol price in Australia was 21 cents per litre. By contrast, Italians were paying 49 cents per litre, the French and Japanese 44 cents, and consumers in the UK were paying 28 cents. By any measure this was a competitive advantage for Australia, but it was also the free market, where the prices reflected the actual cost of producing the fuel locally.

(The price of coal and gas was also based on local production costs and local demand, combined with the fact that all electricity utilities were state owned, as was the coal and gas, so the inputs were kept as cheap as possible.)

Then-Treasurer John Howard decided that Australians paying Australian prices for Australian petrol and diesel was a problem. He proposed that Australia should adopt “import-parity” pricing—local fuel prices should be set at what it costs to import fuel from overseas. There were two shameless ulterior motives for this proposal: more taxation revenue for the government; and more profits for the oil companies producing oil in Australia. Howard just had to create an economic pretext to swing it.

According to an ABC Business report by Gareth Hutchens on 29 October 2021:

“But Mr Howard said Australian motorists were getting petrol too cheaply. He announced a plan that all Australian-produced crude oil would have to start being sold to local refineries at the same price as it cost to import crude oil from overseas. It meant consumers would have to start paying prices based on world oil prices; they’d no longer be able to enjoy cheap oil from their own domestic supply.”

This is what John Howard announced at the time: “Since the OPEC countries quadrupled the world price of crude oil in 1973-74, Australians have continued to enjoy artificially low prices for crude oil. While the rest of the world was facing up to the inescapable fact that the days of cheap energy were over, Australians—even after the imposition in the 1975-76 budget of a $2 per barrel production levy—were continuing to pay less than half of the world price for Australian-produced crude oil. Subsidised indigenous oil prices encouraged a wasteful use of a key energy resource and inhibited the adoption of more energy-efficient processes and technologies. In recognition of this the government moved last year towards a more realistic pricing policy for Australian-produced crude oil.” (Emphasis added.)

Yes, you saw that right: John Howard, of all people, used an ecological argument to justify his ideological economic attack on Australians paying a reasonable price for their own resource.

To underscore how ideological John Howard’s argument was, he went so far as to call the lower prices that Australians paid for fuel in 1978 “a subsidy to petroleum product users [car drivers] of some $800 million”—subsidy being a dirty word to neoliberals like Howard.

Just to be clear, however, there was no actual subsidy, as the domestic price was the market price based on the actual extraction cost of locally produced oil. John Howard invented a fictional “subsidy” argument by redefining the “market” as the world market, not the domestic market.

By convincing his colleagues to accept his bogus ideology, Howard was able to propose a tax to make Australians pay more for petrol, not for any genuine “market” reason, but so he could net the government an extra $676 million in fuel tax revenue in 1978-79, and generate a windfall for the Esso (Exxon-Mobil)-BHP oil drilling operation in the Bass Strait.

Esso-BHP’s Bass Strait production was extremely low-cost oil, and therefore already very profitable, but thereafter it raked in profits based on the much higher global oil prices.

Australians have been paying for it at the petrol bowser ever since.

Likewise, as gas and coal exports have grown, under the same ideology domestic users have been paying inflated global prices for those commodities too.

In fact, gas has become the biggest rip-off of all: Australia rivals Qatar as the world’s biggest liquefied natural gas exporter, but for many years now Australians have been paying more for our gas than what is paid by our export customers.

Ideologically twisted successive governments, including the current Albanese Labor government, have used the neoliberal objection to “government intervention” to stand by impotently as the gas cartel has extracted enormous export profits while denying Australians use of our own gas.

In the 12 October 2022 Australian Financial Review, Australian Workers Union (AWU) National Secretary Daniel Walton rightly demanded a government intervention:

“The government has a choice: defend the insane super profits that gas exporters are making from the Ukraine war or defend the future of Australian manufacturing and the hundreds of thousands of jobs it supports”, he said.

It’s our gas and our coal, and the Albanese government could slash all energy prices today by forcing the resource companies to charge our domestic prices.

 

[BRIAN KK]

I thought it was Malcolm Fraser re world parity pricing on feul??

 

[Geoff8]

Hey Jazza, you know I wholeheartedly agree that the govt should stop all deliveries of our gas and coal to overseas countries, reopen all the refineries that were closed down and start producing our own fuel for the Aussie consumer. We have enough oil and gas in Bass Straight to last us over 300 years and if we keep selling it off it won’t last that long.

 

[Lynjw]

When we say we want to hear from you, we mean it! Before we take a look at the pension reactions directly from your fellow members, we want to quickly pause and reflect on this quote.

‘One voice can change a room, and if one voice can change a room, then it can change a city, and if it can change a city, it can change a state, and if it can change a state, it can change a nation, and if it can change a nation, it can change the world. Your voice can change the world.’
― Barak Obama

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Thank you to everyone who shared their thoughts. Image Credit: Shutterstock

Without further ado, here are some SDC members' comments on the latest Federal Budget.

@Qwarkus: ‘Cut the BS. Pensioners are NOT winning big in this budget. In fact, we are (as usual) losing ground. The CPI incremental increases do not keep up with inflation. We can no longer do as much with our pensions as we could just 5 years ago. The supermarket trolley holds less every week.’

@Lotty made an interesting point, stating: ‘Morison government changed pension indexation from percentage of average earning to inflation so the increase to pension is lower.’

@peter clear: ‘They are putting it all aside to guarantee future C.P.I. increases, we'll see diddly squat!!!’

This is certainly true - the government has emphasised that this was a ‘bread and butter’ budget that tried to minimise spending, which sadly minimises benefits and assistance to Australians.

@Franko: ‘In other words, nothing extra for pensioners. Indexation is enshrined in legislation and the biannual increase simply compensates us for the increase in costs that have gone before. Nobody can remember when there was last a REAL increase in pensions. So it still keeps us below the poverty line; just a little less below.’

@Andrew had thoughts on the recommendation for Australian seniors to downsize their homes: ‘I strongly object to being told to downsize my home. We actually "Upsized" as with a growing number of grandchildren our original house was too small to accommodate everyone for a family gathering. Why should we give up something we have worked long and hard for? How many politicians are willing to downsize homes?.’

So, do members expect anything to change in their life as a result? Let’s see.

@Rob44: ‘An increase of $29.40. Ah well, that's an extra kilo of steak per fortnight. Or was it just lean steak mince?’

@wazezy: ‘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!’

Member @BJM agreed: ‘I can’t justify why electricity rates are soaring. It’s been said there will be another rise between 25-30%. My state government discounts around $80 + each quarterly bill for aged pensioners (Thankyou). The current quarter sees a rise of approximately $1 /day which is $90 + for the quarter. With the next increase of 25-30%, it will take the quarterly bill up another $90 or so. I have a smart meter so I can follow daily usage and cost. This means that over 6 months (2 bills) the total cost will have risen by $180 +. How can seniors manage or anyone for that matter (maybe purchase less food)? The budget did not provide any relief in utility increases. Shame on them!!!!!’

@Bikkie mum: ‘No it didn’t do much for me as I am an aged pensioner. I own my home, have homecare every two weeks and a man to mow my lawn when it needs it. With electricity going up I will have to cut out air conditioning and keeping my phone charged up.’

@annvic wrote: ‘Yes! happy for aged care workers, and residential care workers. But not happy for Pensioners. We are hit left right and centre. We are cutting back as much as possible. There is only skin left on the bone!’

And offered a suggestion: ‘There should be an AUTOMATIC 10% DISCOUNT ON ALL PRODUCTS AND SERVICES FOR ALL PENSIONERS. Go to the supermarket and if your bill is $50 then you pay only $45. That's not so bad for supermarkets.’

And in a situation far too many members can relate to, @Les_D wrote: ‘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!’

In a previous article, we listed some food bank contacts for each state. If you are experiencing food insecurity, please reach out to your relevant state contact.

Finally, @elaine41 summed up our growing concerns: ‘I begin to wonder about how to survive on the basic age pension.’

I want to thank everyone who engaged in the budget conversation, either by sharing the articles with their friends, commenting or replying to other members.

Before I leave you, I do want to remind members that there are a range of resources available and you should never have to bear any burdens alone.

For a more comprehensive list, please check out this list of Mental Health Helplines we compiled.

If you haven’t had your say yet, members, as always, we would love to hear what you have to say in the comment section below!

I still have 20 months til I become eligible for the age pension and have problems surviving on my salary as it is now. I have no idea how I’ll get by on the pension. I’ve already downsized and am v frugal with water and electricity as it is. I have 3 food intolerances and my grocery bill is hard to cut due to my needing to buy special dietary products which are so much more expensive than their run of the mill counterparts. I have v little super. Not a bright future in store for me as is the case for so many others. We work hard and pay taxes all our lives then we r left out in the cold. Pathetic.
We’re even expected to be unpaid childminders despite our age and health. I love me grandkids but it’s not helping my health while trying to keep working part time which is all my health allows. Yet I don’t get any govt subsidy for that.
It’s about time that millionaire earners are hit harder with taxes and not get off with tax loop holes. Yes they work and study hard to get where they r in most cases but so do lower income earners who just didn’t get that one break they needed to be promoted or earn more in a better job. The tax system is unfair and favours the big earners. The govt has lost sight of its commitment to care for the aged population and their health snd well-being.
Wake up govt and see how hard it is for pensioners and lower income earners. Without us the wheels of economy would fall off but you show us no respect. How would u get on without the garbage collectors or posties or checkout attendants etc etc. Think about how your privileged life would be without these services and those who work hard everyday to make life more bearable.