Federal Budget 2023 preview
The first big test for the new Labor government comes in May when Treasurer Jim Chalmers hands down the 2023-24 Budget. Will Labor save or spend— and what will it mean for older Australians?
Last October, Labor unveiled its first budget in 10 years, and it was largely a reiteration of the promises made during the election, including increasing access to the Commonwealth Seniors Health Card, reducing the downsizer superannuation eligibility age to 55, and extending the assets test exemption when downsizing to two years.
It also offered an increase in the Age Pension Work Bonus limit of $4,000. This initiative was brought about as a direct result of the strong advocacy undertaken by National Seniors Australia.
The policy change, which is available until the end of 2023, means pensioners can earn a total of $11,800 before their pension is reduced. This ‘trial’ will benefit older Australians with limited savings who need or want to work—enabling them to earn and save more, and help fill the more than 440,000 job vacancies.
The upcoming Federal Budget on 9 May will be a big test for Labor because it will need to demonstrate it can move beyond its election platform and respond to growing cost of living and workforce pressures.
Central to this are ongoing inflationary pressures pushing up the cost of most goods and services, and negatively impacting living standards for older Australians.
One of the key drivers of inflation is the lack of workers. This is why we are continuing to call for changes to the Age Pension and other government payment rules to remove the disincentives for those who need and want to work.
With inflation continuing to cause a problem for the economy, National Seniors is also advocating for the government to apply indexation to Age Pension payments more regularly. Currently, the Age Pension is indexed every six months in March and September, but it could also be indexed in
June and December if inflation is running riot. This would mean pensioners are not out of pocket waiting for their pension to increase as living costs rise.
The government must also do more to address housing supply and costs, which will only get worse as supply and demand pressures continue. We are continuing to call for an increase in Commonwealth Rent Assistance and for a capital grants scheme for the construction of more rental housing for older Australians.
For those who own a home and need extra care and support as they age, we are calling on the government to exempt the proceeds from the sale of their home from the Age Pension assets test and to offer a dedicated Home Care Loans Scheme to fund additional care at home.
Both policies are aimed at supporting older Australians to live more safely at home rather than in residential care. An exemption would be particularly important because it would stimulate demand for smaller age-friendly housing and free up larger homes for younger families, while allowing older Australians dignity and freedom as they age.
Importantly, these policies provide choice— to either stay in your existing home or find a more suitable one, which we know many of you are calling for.
Another change we’re pushing for the government to adopt is a dedicated mature-age home care traineeship scheme, which would deliver 2,000 home care workers to support older Australians in need of care. This program is based on a highly successful pilot in South Australia, which has retrained mature workers to care for older Australians. It is an important step to get more suitable and better trained home care workers into the workforce, and could be paid for by redirecting funds from the failed Restart mature age wage subsidy program.
In this regard, we are conscious of the burgeoning cost of delivering higher standards of care. Increased pay for aged care workers, commitments to increase care minutes and other reforms will cost billions to deliver. That is why we want the government to commission an independent review to bring all sides of politics together in support of a fair and efficient revenue option to fund the reforms. Whether this is a levy, more user pays, or tax changes, the parliament should have a mature conversation with the public to ensure aged care reform is funded adequately.
While many of our Federal Budget recommendations are focused on what the government can do for you, we are also keen to see measures that give older Australians the means to give back to the community. We know from our own high-quality research that older Australians are concerned about younger generations and want to make a positive contribution.
That is why we continue to advocate for opportunities for older Australians to safely invest in the infrastructure needed to reduce remissions, stabilise energy prices, and ensure reliability.
We are pushing for change, and we will keep you posted. Remember, if you want change, tell your local MP, join our Advocacy
campaigns via the National Seniors website, and encourage your friends, family, and local community to do the same.
To view our full 2023 Federal Budget Submission here.
This article is featured in the Autumn 2023 issue of National Seniors Australia’s quarterly member magazine, Our Generation.
Become a member today and receive four free hard copy issues of Our Generation (valued at $39.80) a year as part of your membership, along with exclusive discounts, competitions, branch membership and more!
Your membership directly funds our advocacy and research work that benefits older Australians including fixing pension poverty, tackling health care costs, and improving aged care.
