Crumbs from the table...

For the first time that I can recall a politician has made an election promise to give pensioners a better deal. The Prime Minister has unveiled a $4 Billion package increasing the utilities allowance for age pensioners, carers, and disability support pensioners from just over $100 up to $500. That’s a significant increase in anybody’s book. Even more importantly, the Prime Minister has also promised to introduce a new cost-of-living index to apply to the twice yearly indexation of pensions. This recognizes the fact that the CPI measure of inflation does not accurately reflect increases in day to day living costs. While the package falls short of truly lifting pensioners out of poverty, it is at least a recognition that not everybody is sharing the benefits of Australia’s much vaunted prosperity. It’s a small step, but a step in the right direction. Ultimately however, the only way to elevate pensioners out of the poverty trap is to increase the pension. Instead of one quarter of male average total earnings, it should be at least one third. And longer term, if compulsory superannuation is allowed to perform as it was originally intended, fewer people will need to be on the full pension anyway. Wouldn’t that be the best option?

So, is the Prime Minister’s offer to the pensioners enough to pick up the grey power vote? Or is it too little, too late? Leave your comment here…