Good news for some in Liberal Seniors policy

Update: The Liberal Party has now released its Superannuation Policy. Nothing new from what SuperGuide has already reported, except there is a hint that the Liberals may review the halving of the concessional contributions caps, and the Liberals may take up some of the Henry Review’s recommendations on super, after community consultation. The Liberals also promise to respond to the Cooper Review recommendations before the end of its first term. Click here to access the official Liberal policy on superannuation.

At the time of writing this article, four days before the 2010 Federal Election, we are still waiting for the Liberal/Coalition policy on superannuation and retirement. Perhaps they don’t have one. The Liberals have however released a Seniors policy which does allude to some superannuation and retirement policies.

From SuperGuide’s perspective, the highlights from Liberal/Coalition Seniors policy document include:

• Indexing the Commonwealth Seniors’ Health Card income thresholds from 1 July 2011. Note that the income thresholds for the Commonwealth Seniors Health Card (CSHC) have not been indexed for nearly 10 years, which makes this announcement particularly newsworthy. I explain the CSHC in the article Are you eligible for a Commonwealth Seniors Health Card?
• Abolishing the age limit for Superannuation Guarantee (SG) entitlements, from 1 July 2013. Like the ALP’s plan to extend the age limit for SG to 74, this policy change won’t take effect until potentially after the next Federal election. Even so, recognising that SG is a work entitlement regardless of age is clearly a step in the right direction for older workers. I explain the SG rules in the article No SG for over-70s: now, that’s not fair.

The Liberal Party and Nationals have also promised the following changes for Seniors, namely Australians aged 50 and over:

• Seniors’ Employment Incentive Payment. This payment will be paid to employers who hire workers aged 50 or over, provided the jobseeker is currently unemployed and registered with Centrelink, or out of the workforce and registered with Centrelink. The employer must employer the worker for a minimum six months and the employer will receive a one-off payment of $3,250 (equivalent to $250 a fortnight). According to Liberal party documents, around 900,000 Australians aged 50 to 65 would potentially be eligible to be employed under this scheme.
• Consider issuing bonds for terms of up to 30 years. The Liberals believe that the recent market turmoil has created a greater need for certainty of investment returns. The maximum term for Australian Government bonds is 15 years, which “limits the period for which Seniors can make highly secure investments”. The Liberals/Coalition promise to direct the Australian Office of Financial Management to examine using bonds for terms of up to 30 years.
• ‘Safer Seniors’ Programme. The Liberals are going to put aside $7.5 million to allow local councils to apply for grants funding of up to $100,000 a year to supplement existing Senior safety programs run by local councils, or for local councils to establish new programs.
• New Minister for Ageing and Seniors. The Liberals/Coalition intends to appoint a Minister for Ageing and Seniors. The policy paper notes that Canada, New Zealand and Western Australia have ministers responsible for ‘Seniors’.

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