WA Super News

Federal Budget 2014 Rumour Mill

28/04/2014

While many across the country took advantage of the alignment of Easter and Anzac Day to take an extended break, speculation in relation to the Federal Budget to be handed down on 13 May continued unabated.

The Rumour Mill

Most of that speculation has surrounded the Age Pension with many expecting the Government to propose measures to reduce its cost.

  • On 19 April 2014, the Australian reported that the "pension age will be pushed out to 70 in next month’s budget and may come into effect as early as 2029".
  • On 19 April 2014, the Sydney Morning Herald reported that the "Coalition is considering pegging the age pension to the rise in prices rather than to the faster-growing male earnings." which is about 1.5% higher each year than CPI.
  • On 21 April 2014, the Australian reported the Government's "expenditure review committee believes the assets test should not be altered in next month’s budget, with Tony Abbott strongly of the view that any changes would breach an election commitment."

The Age Pension is not the only area of expenditure the Government is looking at as it has been reported that they are also considering cracking down on Commonwealth Seniors Health Care Card eligibility by including super income in the income test.

Further, the Government is looking at how people use health services and how to potentially raise revenue from users of those services. On 23 April 2014, ABC Online reported that 'Health Minister Peter Dutton has fuelled speculation the Federal Government is poised to introduce a new payment for GP visits". Mr Dutton wouldn't confirm the introduction of the widely reported co-payment of $6 for bulkbilled GP consultations, however he is reported as saying "But at the same time people on incomes like mine, or a reporter on $300,000 or $400,000 a year - should we expect to go to the doctor for free? That's a reasonable question to ask."

Source: BT Financial Services

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