Federal Budget 2009 » Harmer pension review report

In addition to the Budget and the AFTS review report, Dr Jeff Harmer has released his report of the review into measures to strengthen the financial security of seniors, carers and people with disability. The key findings were that the basic structure of Australia’s pension system is sound although it needs some reforms to meet both short and long term challenges.

The Review has developed 30 findings across five major areas:
• The adequacy of the rate of the pension,
• Indexation arrangements for pensions,
• The design and delivery of pension payments,
• The concessions and services that support the pension system,
• The targeting and long-term sustainability of the pension system.

Some of the recommendations made have been adopted by the Government in this Budget including:
• Increases to pension rates,
• Removal of the Pension Bonus Scheme,
• A new price index to index the base pension, and
• A simplified pension supplement scheme.