Opposition attacks bank deposit guarantee ‘bungle’
Margaret May, Shadow Minister for Ageing, and Chris Pearce, Shadow Minister for Financial Services, Superannuation and Corporate Law, have said that the Government’s ‘bungled’ bank deposit guarantee continues to block older Australians in desperate need of aged care from accessing hard-earned savings locked up in cash management trusts and mortgage trusts.
“Without access to savings they have worked tirelessly for,” said Mr Pearce, “older Australians who cannot meet the costs of entering an aged care facility in full, are forced to pay substantial government mandated bond interest charges.”
“I know of older Australians paying over $1000 a month in government mandated bond interest charges because their investments cannot be realised”, said Ms May.
They said the Rudd Government must immediately articulate an exit strategy, or phase out plan, to provide relief to Australians frozen out of their own savings and funds.
“I am greatly concerned for the well-being of older Australians who, due to circumstances beyond their control, have been forced to choose to defer entering an aged care home”, said Ms May.
“Many older Australians simply cannot afford the thousands demanded by government-imposed interest charges.”
“Older Australians with frozen investments are forced to pay huge amounts of cash or simply go without the care they need.”
“Kevin Rudd must stop punishing aged and frail Australians who invested in their future care needs and immediately act to save the aged care sector from collapse,” said Ms May.
