Embargoed until 1900 hours 13'. 3.77  3YB - 17 March

3HA - 13 March

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FOR PRESS 13 MARCH 1977

ELECTORATE TALK

The Federal Government this week announced that the two and a .   quarter million Australians who receive pensions or benefits  will receive increased payments in May. Single pensioners will  receive a. S3.60 a week rise and a pensioner married couple will

receive a So.00 a week increase. This means that the maximum  standard pension rate becomes $47.10 a week, while the maximum  married rate becomes $78.50 a xveek. Repatriation pensions in  all categories also will be increased by the same rate.

The decision honours our often stated commitment that increases  in the Consumer Price Index xvill be automatically passed on to  pensioners. The increases that come into effect from May  represent the full percentage Â£loxv-cn from the last two

Consumer Price Index increases.

In my Policy Speech prior to the Election, I said that "the  real value of pensions xvill be preserved." Clearly, we have  done just that. Since we'took office, the total increase in  the standard pension has been $8.35 a xveek - ah increase of

21.57Â». The total increase in the combined married pension lias  been $12 a xveek. . . .  .

We are committed to protect pensioners' pensions against  inflation. We are committed to take politics out of pension  increases by giving automatic increases in line with price rises  twice each year. Our actions have firmly demonstrated that we  are honouring that commitment.

The Department of Social Security carries out vital programmes -  the extent and significance of which are often missed. The  budget allocation for this financial year for the payments of  social security pensions is 32% more than actual expenditure

in 1975/76. In 1976 there were an estimated 1.9 million  pensioners and beneficiaries receiving assistance through the  Depart rent cf Social Security. There are 1.7 million pension  and benefit cheques issued each fortnight. The estimated

expenditure each fortnight on pensions and benefits is  $140 millet::. Over a full year the Department issues more  than 65 mil lien cheques. For this financial year the. estimated  total expenditure by the Department is $5,580 million - that  Ã¢ÂÂ¢represents almost half of income tax receipts from individuals.

/In view

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In view of our expenditure commitment in this vital area, the  Government is paying attention to making sure that the community  gets the best possible value from outlay.  We are 'determined chat  our welfare programmes are directed to people in real n e e d .  We  are determined to make sure that the social security administration

is both efficient and sensitive to the needs of individuals.

The Government also moved'last year to make many more people  eligible for the pension.  The Government, gave an undertaking  that it; would move towards 'replacing means tests with an income  test, so that those who had saved would not be penalised. The  Government s&xv this as an opportunity to eliminate much administraÂ­ tive complexity.  . . .

Effective from 11 November 1976 the Government abolished the  separate property component in the means test for pensioners. The Government's decision followed the lines adopted by Professoral  Henderson in his first main report on poverty in which he said:  ' W

"The existing means test which determines eligibility includes a  treatment of assets which is a relic of far.less generous cays." He recommende .  that the treatment of asset incomes for pension-  purposes shou t.; be no different from other incomes.  We agreed,  /g||

and acted accordingly.

These measures - along w i t h .the Government's three year programme  for aged or disabled persons accommodation and senior citizen  centres - are the clearest possible demonstration of this  Government's desire to. assist those in n e e d .  Our social welfare-  policy seeks to enhance the security, dignity,  self-reliance and  well-being of Australians.  We have put these words into positive

action for the benefit of millions of Australians.  .

