Last September the federal government announced changes to social security legislation which, incredibly, has left many aged pensioners considerably worse off. There are also fears that many pensioners are at risk of criminal prosecution because of misinformation, confusion and exasperation about the Centrelink reporting rules that were introduced with the amended legislation.
Initially it was widely believed that, as a result of the amendments, the amount an aged penioner would be able to earn would be increased by up to 50%. It was explained that under the new “Work Bonus” scheme, pensioners, whether single or in a partnership, would be able to earn about $300 a fortnight without loss of any pension.
It was further explained that those who earned more than this amount would have their pensions reduced, at the rate of 50 cents in the dollar, for every dollar earned in excess of the $300 limit. Fair enough.
But the Combined Pensioners and Superannuants Association (CPSA) was quick to point out that while the amended legislation does improve the lot of pensioners who are lucky enough to have a regular job, it severely penalises those who are only able to get seasonal work.
For example, under the current rules a pensioner who earns, say $2500, for a one-off fortnight’s engagement as Santa, will lose all of his pension for the corresponding period, even though he was unable to get other work during the year. Furthermore, if he is married, his wife will also forfeit her pension for the same period, even if she didn’t work. This is because under the new rules, the pension cuts out if a pensioner couple earns more than $2415.20 a fortnight.
Yet CPSA’s policy director Charmaine Crowe advises that under the previous rules, single pensioners were each able to earn $3588 a year before forfeiting any pension. This was irrespective of whether that proscribed amount was earned as a result of a regular job or one or more casual engagements. Under the previous rules a pensioner couple was able to earn up to $6400 a year without forfeiting any pension.
For the past 15 months the CPSA has been campaigning for the re-introduction of rules that allow pensioners to earn a certain, proscribed amount, before pensions are docked.
Crowe complains that the current rules were introduced with virtually no community consultation.
That lack of consultation — and the belated realisation that the new rules would penalise seasonal workers — provoked so much pensioner outrage, it is believed to have resulted in Julia Gillard’s pre-election commitment to amend the current rules from July 1 next year.
Crowe explains that under the proposed Gillard amendments, pensioners, whether single or living in a partnership, will each be able to earn up to $6500 a year without loss of pension. But the catch is that this entitlement will have to be built up over 12 months, at the rate of $250 a fortnight. In other words, pensioners will not be able to take advantage of the amended rules until July 2012.
By then, many will be into their seventies and are likely to find it difficult to get any kind of work. In the interim they will continue to risk losing all, or at least part, of their pensions if they earn more than $300 a fortnight — even once a year.
Most seasonal jobs, including as Santa, involve long hours and weekends. Yet Crowe reports that as a result of age-discrimination in the workplace, hard-up pensioners consider themselves extremely fortunate to land even the odd casual engagement.
Even so, this year, as was the case last year, thousands of pensioners again will forfeit a fortnight’s pension (or perhaps two) as a result of a brief, one-off seasonal engagement. And this is set to continue until 2012.
So how much has the government saved in pension payments as a result of the recent tinkering with the legislation? Perhaps the opposition may be able to glean this information, but Crikey is still awaiting Centrelink’s response to repeated requests for information about the number of Australian aged pensioners employed on a regular basis and the number engaged on a seasonal basis.
Meanwhile, Crowe is concerned about the ramifications of the Centrelink reporting rules that were introduced in tandem with the amended legislation. Those regulations include the rule that aged pensioners must contact Centrelink within 14 days of starting any job so that their pensions can be docked if necessary.
But after completing a casual assignment many pensioners have to wait for up to three weeks or more to be paid. So rather than risk the forfeiture of their pension, some are tempted to delay reporting until they receive their earnings.
A pensioner who gets work each year helping to administer university exams, told Crikey that he never contacts Centrelink until he actually receives his pay. He explains this is because his hourly rate varies, so he’s never certain about his exact gross fortnightly earnings until he receives his pay advice. He said if he constantly phoned the uni’s pay office seeking this information, he might end up being considered more trouble than he’s worth.
He also insisted that he has found Centrelink staff understanding of his predicament. “No worries,” he says. If you’re late reporting, they raise a debt against you. You’re allowed to pay it off in instalments, at the rate of about $50 a fortnight. That’s much better than losing a whole fortnight’s pension in one hit.”
Yet an alarmed Crowe warns out that Centrelink provides customers with information sheets that make it plain that it expects its rules to be strictly observed and that non-compliance can lead to the cessation of payments and prosecution.
It’s never a good idea to incur a Centrelink debt, she warns. It’s proof that you have been in breach of social security legislation. Perhaps unwittingly, but the onus is on you to observe the rules.
Terrific article, BUT PLEASE!!! remember this fact; ‘PROSCRIBED’ means ‘FORBIDDEN, or BANNED or ILLEGAL’, etc it does not mean the same as ‘PRESCRIBED’.
In fact, in many cases, as in your article, ‘proscribe’ pretty much means the precise opposite of what you mean, if you really mean ‘prescribed’ . Please remember it because it actually distorts what you mean to say to the horrific extent that you are saying the opposite of what you mean to say. So there can be no such thing as the ‘proscribed’ amount a pensioner is legally allowed to earn. If such an amount were ‘proscribed’ the pensioner could not be legally allowed to earn it. What you mean is the ‘prescribed’ amount.
If you ask me the system stinks… centrelink sounds like a horrible place that, I have fortunately never had to visit and hope to God I never do. Why do people in such places think it important to become officious and inhuman. When can a human being take a respite from this horrific, red tape filled, bureaucratic micromanaged State?
@LADY WHITE PEACE – I’ve had dealings with Centrelink, and before that the Dept of Social Security, or as I called it, the dept of social INSECURITY – I could write a book about the carrying on of these people. these are Australians doing horrific things to other Australians. I vividly recall when I was off work on compensation for a preventable injury, RSI. I was in constant acute pain that meant I only slept for 2 hours at a time for more than a year. I was at one time denied both Sickness Benefit and Unemployment Benefit – as I had a Certificate for light duties and I hadn’t been officially sacked, even though I’d received a letter telling me not to front up for work? It took a couple of days on the phone with both State & Federal MP’s before I was ‘awarded’ sickness benefit. But the real corker was a letter I received from SS, one page in one envelope, and page 2 in another? I still have them! I was constantly having discussions and debates with them, and soon learned not to do my fortnightly shopping until I checked that the money was in my account. Unbelievable stuff!
I’ve heard horror stories of (mostly) women on sole parent benefit, who ring and report their work hours etc only to find out at the end of the yr when they received no tax cheque(prior to Xmas, a lot of fun) as they’d been overpaid – no fault of theirs? I used to be constantly chasing up non-payment and late payments for many women when I was off with RSI. Amazing stories! Almost unbelievable some of them – sometimes these women had dependable kids. At least I didn’t have anyone else to consider – thankfully! They can drive you to drink, I kid you not. I’ve not learnt anything that makes me think they’ve improved in 25+ years?
It’s as though there’s someone employed to dream up ways of catching people out, or screwing up their applications, or losing medical certificates etc. They threatened me with court action once, even though I was in the right. When the penny finally dropped, I just got an ‘oooopppss’ letter, no apology, no nothing! I was a wreck! In pain, no money and threatening letters! A ton of fun! What doesn’t kill you only makes you strong – how true that is?
My no 1 piece of advice – always assume the worst and prepare for it. The other is, never hand over an original of any document, including your application form for anything – ask for a copy and have it dated and initialled, and keep a folder with accompanying notes of every contact – in particular the date and who you spoke to and a record number of interview, phone call or? The only way to maintain your sanity! And it will be their word against yours, and you’re never meant to win! Never! In all the yrs of blunders, I never received one apology!
hey Liz 45… write a book about it…. A “HOW TO” book for those who have not yet had the pleasure of experiencing their officious inefficiency? How about this title: ALL YOU NEED TO KNOW TO SURVIVE CENTRELINK SERVICES
@LWP – Yes, I should! So many subjects so many books! I do help people on a one to one basis when I’m made aware of their struggles. For nearly 8 yrs in the mid to late 80’s onwards I ran 2 support groups for mostly women(as they were the overwhelming number of workers afflicted by RSI) and took up their struggles – we also accompanied them to court and insurance company doctor’s appointments – there’s another book! You’d be shocked!
For instance, one young woman was internally examined for pregnancy when she presented with RSI symptoms. English was not her first language. I was bullied by one so-called doctor(medical prostitutes I called them – sold their certificate for big sums per consultation, another sum for their report, and yet another if they gave evidence in Court) and then he bullied my State Member when he took up my case in Parlt – he deliberately hurt me during examinations too! Thug! (we put in for a small tape recorder, and any woman could borrow it to hide in her handbag during examinations). Also, two or three of us would go with her, and sit near the door. (nobody was allowed in, unless they were husband?) and say in a loud voice, ‘if you need us, yell’? I was often given the ‘evil eye’ when I accompanied women to court – didn’t bother me one bit! I don’t like bullies!