Don't Play Politics With Pensions

Catholic Social Services Australia has released a discussion paper calling for the establishment of an independent Entitlements Commission to set and review pensions and other income support payments on an annual basis.

Executive Director, Frank Quinlan said the Commission would operate at arms length from government in much the same way as the Fair Pay Commission, the Commonwealth Remuneration Tribunal and the Reserve Bank of Australia.

"Why should those on benefits only be fed the scraps from the political table?," Mr Quinlan said.

"An independent tribunal determines the salaries federal politicians and other public servants are entitled to receive, this Entitlements Commission extends that principle to all those dependent upon government benefits for their livelihood.

"Successive Australian governments have avoided making judgments about what an acceptable living standard for Australians on benefits might be.

"The current system is full of anomalies born of random payments and bonuses that arise out of political whim and historic accidents rather than good social policy.

"An independent Entitlements Commission would review the adequacy of pensions and other income support payments free of political interference.

"The Entitlements Commission would be ongoing and the government would appoint members for a fixed period, say for four years.

"Before making its annual decision the Entitlements Commission would call for submissions and hold public consultations," Mr Quinlan said.

The Entitlements Commission could include:

• Academics with expertise in poverty research and income support policy.
• Representatives of the community sector.
• Representatives of the business community with expertise related to cost of living issues.
• Retired MPs or senior public servants with relevant experience.

In setting adequacy benchmarks the Entitlements Commission would consider:

• the goods and services necessary to live in reasonable comfort, maintain dignity and take part in the life of the community;
• the contribution of in-kind government support provided through measures such as the Seniors Card, Medicare, public housing and subsidised rent and transport;
• differences in the cost of living between income support recipients who own their own homes or have access to public housing and those who rely on the private rental market;
• differences in the cost of living for income support recipients in different geographical areas;
• differences in the cost of living for income support recipients living in different family/household types.

"The technical issues involved in establishing credible benchmarks of income adequacy are well established," Mr Quinlan said.

"Appropriate methodologies have been developed for use in the Australian context.

"The major hurdles are not technical but political.

"Unless the community insists that all governments should meet standards of accountability, the system will not change," Mr Quinlan said.

Catholic Social Services Australia provides services to over a million Australians each year through its 64 member agencies in remote, regional and metropolitan Australia. 

A copy of the paper is available at http://www.catholicsocialservices.org.au/system/files/Entitlements+commission+-+FINAL.pdf


22 September 2008

CONTACT Judith Tokley 0 6285 1366 / 0408 824 306