OLDER migrants living in Australia are set to be dealt a "cruel" blow if the government's proposed welfare system changes get the green light.
The Australian Council of Social Service has warned the federal government's bid to make changes to social security - including increasing waiting periods for migrants claiming an age or disability support pensions - will increase poverty among seniors.
Under the proposal, migrants will have to wait up to 15 years before they can access age or disability pensions.
The draft laws are set to be debated when Senate returns in February after passing the lower house late last year.
ALSO READ:
"This is a cruel cut that will increase poverty among older people in Australia," said ACOSS chief executive Cassandra Goldie.
To currently qualify, people must have been a resident for a decade, including five continuous years.
But under the changes, people must continually live in Australia for a decade, with either five years while of working age or more than five years without being on welfare.
Alternatively, people can fulfil the residency requirements if they have lived in Australia for 15 continuous years.
The government expects this to affect 730 people in the first year of operation, and 2390 over the forwards.
"ACOSS strongly opposes this measure. It will deny people aged 65 and over, and people with a disability in serious financial hardship, access to a pension," Ms Goldie said. "It will mostly be older people who are affected, who have very limited opportuntiy to get sufficient paid work.
"Furthermore the government has failed to explain why we need to extend the residency in the first place. Considering the small number of people affected, we clearly do not have a problem with people accessing pensions without spending at least 10 years in Australia."
Cuts to pension supplement
The bill also cuts the GST Supplement for pensioners who spend six weeks or more outside of Australia, which Ms Goldie said will disadvantage older people who travel overseas to visit family.
Currently pensioners continue to receive the GST Supplement after spending six weeks overseas, but lose access to the Utilities Allowance, Telephone Supplement and Pharmaceutical Allowance (which together with the GST Supplement form the Pension Supplement). The GST Supplement is $11.95 a week for singles, $19.70 for couples.
Labor's families and social services spokeswoman Linda Burney said the government was "changing the goalposts on pensioners".
She said plans to cut the pension supplement will affect migrants who have been in Australia for a very long time.
"They have all worked hard, all paid their taxes," Ms Burney said.
"While they're still able, many will want to return to their home country for a couple of months to be with very aged parents, or grandchildren or family, they haven't seen for many many years.
"These people have not been a burden on the Australian tax system, because they've been sponsored by their families."
Liberal MP Fiona Martin told the Canberra Times the changes would ensure welfare was given to people who need it most and will "bring the law into line with community expectations that migrants shouldn't expect immediate help from Australian taxpayers, particularly if they move close to retirement age".
Liquid assets waiting time changes
The amendments to the migrant pension eligibility are part of the government's Social Security Integrity Bill, which also includes proposed changes to the liquid assets waiting time (from 13 weeks to 26 weeks) for welfare applicants.
The proposed changes would make people wait up to six months before applying for some welfare payments if they have more than $18,000 in liquid assets. For couples the figure is $36,000.
The changes are expected to save the government more than $290 million over the forward estimates.
More than 180,000 over-55s are jobless and rely on the Newstart allowance of just over $40 a day.
The current maximum fortnightly payment is $559 (single), $504.70 (partnered, each), and $604.70 for a single person aged 60 and over after nine continuous months on the payment. Youth Allowance, Austudy, Newstart and Sickness Allowance are subject to the liquid assets waiting period.
Assets assessed for the liquid assets waiting period include cash on hand from any source, shares and debentures and term deposits.
The Department of Social Security guide also lists some payments made or due to be made by a person's last employer and compensation payments. Assets not considered liquid include superannuation and termination payments that have been rolled over or are going to be rolled over directly from the person's employer; proceeds from the sale of the principal home, in some circumstances; and the surrender value of a life insurance policy.
You can find out more HERE
From March, the Newstart payment will end and all eligible recipients will move to the new JobSeeker Payment at the same rate.
While you're here... Want more stories like this from The Senior delivered straight to your inbox? Simply sign up, using the form below, for our regular e-newsletters packed with the latest health, entertainment, travel and lifestyle news.
