Pension increase may be on cards
Julia Gillard’s climate change committee is examining ways to stop state governments clawing back parts of its planned carbon tax compensation to people in residential aged care homes and public housing tenants.
The Australian newspaper reported that a paper presented to the multi-party climate change committee on Tuesday (17 May) discussed how state governments broadly charge up to 25% of assessable income as rent in public housing facilities
The paper stated that in May 2009, former Prime Minister Kevin Rudd wrote to all premiers seeking agreement that the full $30-a-week increase to the single pension announced in the budget would flow through to pensions in public housing.
The states agreed and, according to the paper, only South Australia and Western Australia have ended the quarantine.
The release of the paper will increase speculation that the government is looking at an increase to the age pension as part of its compensation package and will attempt to find a way to pass on the carbon tax compensation for at least the first 12 months, which will be targeted towards low and middle income earners.
