To lift most pensioners out of poverty, the full single rate of $19,399 is desirable - but a formula of 30 per cent MATWE, with an immediate figure of about$17,537 would still be a significant and welcome improvement. Less than this simply does not do enough to address the cost-of-living pressures Australian pensioners face.
And as Charmaine Crowe of the CPSA has argued, further reform in other areas is also needed (for instance: abolition of the Pharmaceutical Benefits Scheme co-payment).
Pension reform has real consequences for the quality of life of millions of Australians.
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Among other factors it determines whether or not these people can afford proper nutrition; enjoy heating and air-conditioning; have adequate shelter and access to water and energy; and also have access to information and communications technology others take for granted. It also influences access to transport and opportunities for social connectedness: as well as ability to deal with unexpected contingencies (for example, a broken-down car, fridge or TV).
Importantly, the formula for sole parents needs to be adjusted to accommodate the additional costs associated with raising a family.
It says something about the kind of society we live in that Bob Hawke’s statement in 1987 that “no child live in poverty” is looked upon as ludicrous.
It is within our means now, though, that the PPS (“Parenting Payment Single”) be raised according to a “basket of goods” necessary for sole parents and their children. It is within our means to provide for vulnerable sole parent families: the sole parent pension should be provided until the youngest child reaches the age of 16 not the threshold of 8-years-old introduced by the Howard government.
The domestic labour of sole parents in raising young families is just as important as labour market participation.
According to a May 2009 ACOSS (Australian Council of Social Services) factsheet, “there are about 360,000 sole parent families with around 600,000 children between them on this payment”.
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The Federal Labor Government ignores this demographic at their own peril.
As the Federal Budget approaches, we cannot allow different pensioner groups to be divided against each other. With organisation and solidarity we can achieve change. Those concerned need to hold Rudd Labor accountable.
And the Opposition needs to be exposed for its hypocrisy in favouring the aged pension ahead of other pensions - for purposes of political opportunism.
The rights of the vulnerable and disadvantage must be prioritised. This includes the unemployed, the disabled, sole parents, the aged, carers, and students.
As I have written elsewhere: in a fair society “none ought to be left behind”.
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