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about COTA NS| sitemap | links | media releases and press articles | policy and information | publications | State and Territory COTAs | national seniors association | what's new | feedback |
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10 November, 1999
The Council on the Ageing has concluded its first national congress today. Older Australians: A Working Future? The congress attracted around 250 delegates from every Australian State and Territory and from New Zealand. The extensive media coverage indicates the timeliness of the congress theme.
It featured a range of speakers including the Federal Minister for Aged Care, the Hon. Bronwyn Bishop, MP, and the South Australian Ageing Minister, the Hon. Robert Lawson together with leading commentators such as Dr. Don Edgar, Prof. Graeme Hugo and Prof. Sol Encel.
The congress challenged participants to discuss policies, theories, strategies and programs about mature employment. It sought to identify new directions; facilitate communication, education and training; and increase the public's awareness of the social, economic and political impact of limiting employment options for mature aged workers.
Denys Correll, COTA (Australia)'s National Executive Director, welcomed the involvement of the community, government and academic participants in the congress. He said "that the next step will be to engage employers and the business community in the debate and to change their attitudes to mature workers".
The congress has agreed to a communiqué calling on Government and employers to cooperate in changing aged based work-based discrimination.
Conference Communiqué
The Inaugural National COTA congress, Older Australians: A Working Future? agreed to a call to arms by all mature workers to combat the endemic age based discrimination that exists in Australian employment practices. Specifically, the congress agrees to the development of a partnership between COTA, other organizations representing mature aged workers, Governments, employers and business organizations, trade unions, academic researchers, and the mature unemployed themselves, to address and seek solutions to this insidious problem.
The congress believes that this partnership will lead to the development of broadly based strategies which can overcome the discrimination evident in employment practices within Australia and which see both the old and the young disadvantaged in seeking employment.
The congress calls on both Commonwealth and State Governments to take leading roles in the development of targeted employment programs. The congress asks Governments to ensure that their own employment practices lead the way in maintaining a balanced workforce which maintains respect for the contribution of older workers.
To achieve a change in attitudes will require a commitment by Governments to influencing a shift in employer attitudes and practice.
The business community in turn, through its various peak bodies, must accept responsibility for ensuring that accurate information about mature workers is conveyed to their members. We call on them to commit to working in partnership with us in seeking practical solutions to overcoming the myths and stereotypes that persist and disadvantage mature workers.
The congress rejects the myths and stereotypes that perpetuate negative attitudes towards mature aged workers. Many studies show that mature workers can be:
These studies show that mature workers provide stability, experience and the ability to mentor younger workers.
8 November 1999
New policy directions and new research will be prominent components of Council on the Ageing (Australia)'s national congress "Older Australians: A Working Future"? being held in Adelaide at the Hilton Hotel, Monday 8th and Tuesday 9th November.
The Minister for Aged Care, The Hon. Bronwyn Bishop today launched the National Strategy for an Ageing Australia paper "Employment for Mature Age Workers". The National Executive Director, Denys Correll said today "The Minister's issues paper sets the pace for employment of older people into the next century. Mature age workers will bring a range of social and economic benefits to the Australian community".
"Employers will need to show a new attitude by employing mature age workers. Industry, society and the economy will benefit if there are more older employees in the workforce. Economists have expressed their concern that a diminishing work force cannot support social expenditure in the next century. Reversing the trend of early exit from the workforce will relieve budgetary pressures in future years."
"Already there are signs of recognition of the need to expand mature age employment. In the three year period to September 1999 of half a million jobs created, two out of every three were taken up by workers over forty five."
The Congress will be the venue for the release of new research including work by Adriana VandenHeuvel, Deputy Director, National Institute of Labour Studies, Flinders University. In her paper she will provide new material on the state of the labour market for older workers.
Other key speakers will be Dr Don Edgar, former Director, Institute of Family Studies, Cheryl Kernot, Opposition Spokesperson on Employment, Philippa Smith, Association of Superannuation Funds of Australia, Professor Sol Encel and many others.
21 July 1999
Older Australians identified health care as their major concern in a survey of Council on the Ageing membership. Current threats to Medicare by some State Premiers will increase the anxiety of older Australians who already are worried that they will not be able to get public hospital care when they need it.
Council on the Ageing (Australia), Australia's leading organisation of older people, is alarmed that some State Premiers and the AMA once again have raised the possibility of means-testing admission to public hospitals. Mr Correll, national executive director of Council on the Ageing (Australia) said today "The AMA's position is understandable as they have continually supported increasing private health provision. The position of State Governments, however, is somewhat surprising given the popular electoral support for Medicare."
"It took the Federal Liberal Party some years to realize that meddling with Medicare cost them the chance to be in Government. "Virtually every post-election survey reveals that health care and Medicare have consistently been amongst the top key issues in deciding people's votes."
"Some State Premiers now want to force people into private health insurance and restrict their access to public hospitals. It is important that all society owns and uses the public hospital system. We don't want to revert to a 'poor house' model."
"Council on the Ageing welcomes the Prime Minister's and Dr Wooldridge's commitment to Medicare. They have tried to reach a balance between the public and private system. The Federal Government has done everything possible to support private hospitals and private health insurance. The incentives are costing billions of dollars."
Mr Correll concluded "In surveys of our own members, health care and waiting lists are the top issues of concern. The Premiers are doing the community, especially older people, a disservice by proposing that access to health care be based, not on need, but income."
1 June 1999
The Council on the Ageing (Australia) has called on the Government to take care in defining what food should be in and out of the GST.
"COTA welcomes many of the new GST exemptions but the uncertainty about food is of great concern," said Mr Denys Correll, COTA's National Executive Director.
"Some of the definitional issues being discussed verge on the ludicrous but fundamental issues are at stake. People who are able to travel to supermarkets in a car, buy significant quantities of fresh food and prepare it themselves will benefit from the fresh food exemption. This will mainly be households where there are economies of scale in buying quantities of basic foodstuffs.
"However, 40 per cent of women and 18 per cent of men over 65 live alone. Many of these people receive only the single age pension. This group has been a major concern to COTA in recent years as we have received many reports about their day to day struggle to make ends meet.
"For the age pensioner living alone economies of scale are not available. Take the example of the roast chicken. It is precisely the older person living alone who will be buying the quarter or half chicken rather than the whole roast. It very unlikely that they will be buying an uncooked chicken and roasting it for themselves. We believe there are many examples where a single older person is buying small quantities of prepared foods, such as salad from a supermarket deli, which is often more cost effective than buying all the raw ingredients to make the salad.
"We acknowledge that the Government has improved the pension compensation from what was offered in the original package. But we are yet to assess the adequacy of this new offer.
In addition, COTA welcomes many of the changes to the tax reform package as they represent recommendations in our submissions:
"The effects of the alterations to plans to abolish state taxes also need to be assessed in terms of older people's budgets," concluded Mr Correll.
24 May 1999
The Council on the Ageing (COTA) said today that a GST exemption on basic food will take some of the pressure off older Australians when a GST is introduced. Regardless, adequate compensation in the form of pension adjustments would still be needed for pensioners. Self-funded retirees need separate assistance through an improved savings bonus.
Mr Denys Correll, COTA's national executive director made the following points:
"Older people spend a very high proportion of their income on household services and utilities compared to the average household. They tend to repair their household chattels and keep cars running when the rest of us will buy new goods. They spend a higher proportion of their income than average on gardening and home maintenance services in order to remain in their own home.
"And because they spend so much time at home they have high energy costs for heating and cooling. Neither services nor utilities have attracted sales tax in the past. Older people will gain little advantage from the abolition of wholesale sales tax and its replacement with the GST.
"We cannot assume that all older people will benefit from a GST exemption on basic foods. Many older people rely on food that is prepared outside the home for sustenance. This may be in the form of cheap meals provided in food courts and venues such as RSL clubs – and yes, even McDonalds.
"COTA is concerned that older people who are unable to shop for food and prepare it at home will be at a disadvantage if they are paying an additional 10 per cent for their meals.
"COTA believes that older people will need at least the full compensation measures offered by the Government to Senator Harradine. These included:
11 May 1999
"Older people welcome the Government's announcement in the Budget that it will introduce a plan for unfunded lifetime community rating," said Mr Denys Correll, Council on the Ageing (COTA) national executive director commenting on the Budget tonight.
"The plan will reward people, especially older people, who have made a commitment to private health insurance over their lives. This has been an important issue for many COTA members, of whom 51 per cent have private health insurance. They feel that they have struggled to pay for private health insurance and deserve a better deal than they have been getting. The new arrangements will mean that their premiums are more likely to remain stable because of incentives for younger people to take up private health insurance.
"In addition, COTA is particularly pleased that the Government has listened
to our concerns and designed the policy to protect older people. This means
that people over 65 will be able to take up private health insurance at the
lowest possible cost at any time. There will also be a one year "grace"
period to give younger people time to decide whether to join or not. A 2 years
hardship provision will also be available if a person's financial circumstances
prevent them from paying premiums.
"Other welcome initiatives in the Budget include the innovations in primary health care for older Australians. This will include the expansion of co-ordinated care programs and incentives for GPs to develop specific care plans for their clients over 65 years of age. There is also a useful new program for health assessments by GPS. Hopefully, these will occur in the homes of people aged over 75.
"We are very pleased about the new arrangements for a phone service which will enable older people to directly contact Home and Community Care services in their region. This will enhance accessibility to these important services which help older people stay living at home. Improved accessiblity to HACC was one of COTA's priority budget recommendations.
"Other welcome measures in the Budget include additional funding for the National Health and Medical Research Council, for falls prevention services, for health services in rural and remote areas, for indigeneous health care and suicide prevention," concluded Mr Correll.
11 May 1999
"The Budget has a number of worthwhile initiatives for older Australians particularly in the health area in this International Year of Older Persons," according to Mr Denys Correll, Council on the Ageing (COTA) national executive director.
"COTA welcomes the funding of $82.2 million over 4 years for respite care, the $8.2 million to assist with residential care restructuring and $25.6 million for aged care in rural areas. Adequate funding for aged care is a key COTA priority.
"We welcome the $41 million over 4 years for a phone service that will allow older people direct access to the Home and Community Care (HACC) services in the region in which they live. However, COTA believes more resources are needed for HACC services. There is an urgent need for additional HACC services which help to prevent the need for residential care.
"COTA has reacted positively to the various health initiatives including the plan for a system of unfunded lifetime community rating for private health insurance which will reward long term membership. We have commented more fully on this in the accompanying press release.
"Other useful health measures include expansion of coordinated care programs and more intensive health care for older Australians. These are very welcome.
"COTA was hopeful of some major announcements on mature age employment in this Budget as this is a key COTA priority issue for the International Year of Older Persons. The Government has said it is waiting on the recommendations of the House of Representatives Standing Committee on Employment, Education and Workplace Relations. We will be expecting some worthwhile initiatives.
"We are concerned about the changes to gifting provisions for age pensioners. At the moment pensions will not be effected by gifts of up to $10,000. This amount is being reduced to $5,000. Older people wishing to help out their families in crisis will be distressed by this new rule," concluded Mr Correll.
8 April 1999
The report to the Senate GST Inquiry by Professor Anne Harding and Dr Neil Warren, released today, supports what the Council on the Ageing (COTA) has maintained from the beginning:– that the impact of the GST on the cost of living for older Australians has been greatly underestimated and the compensation offer is inadequate.
"COTA believes that the Government must take the findings of this new modelling very seriously. The compensation package needs to be thoroughly improved," said COTA spokesperson, Mr Ian Yates.
"The best means of ensuring adequacy of the tax package for low income, older people is to revise the adequacy benchmark for the Age Pension. At the moment this benchmark is set at 25 per cent of Male Total Average Weekly Earnings. COTA believes that the benchmark needs to be lifted to 27 per cent of MTAWE.
"This would give pensioners an 8 per cent pension increase. We estimate that the price effect of the GST is likely to be in the vicinity of 6 to 8 per cent for older people. This is because most of their spending is on food, services and utilities which have previously not attracted tax.
"In contrast, the Government claims that the price effect will be 1.9 per cent for all groups in the population, including low income and older people. This claim is simply not tenable.
"The Government is offering compensation of a 4 per cent pension increase on 1 July 2000 but 2.5 per cent of this is clawed back in subsequent September and March indexation points so that the real pension increase is only 1.5 per cent. CTA is very worried about this massive shortfall.
"COTA also seeks the Government's support for improving the savings compensation for older people which at present is not enough to cover the loss in value of savings. Compensation for retired people under the age of 60 also needs redress," concluded Mr Yates.
31 March 1999
"The majority report recommends that the Senate blocks the passage of the tax reform legislation. COTA does not agree with this, but does agree that older Australians will be worse off with the tax and compensation package in its present form," said Mr Denys Correll, Council on the Ageing (COTA) national executive director.
COTA said that the majority report of the Senate Community Affairs Committee, released yesterday, provides strong evidence that low income people, including many older Australians would be disadvantaged by the GST.
"COTA believes that the Government must take the findings of the Committee, if not its recommendations, very seriously. The compensation package needs to be thoroughly improved.
"The best means of ensuring adequacy of the tax package for low income, older people is to revise the adequacy benchmark for the Age Pension. At the moment this benchmark is set at 25 per cent of Male Total Average Weekly Earnings. COTA believes that the benchmark needs to be lifted to 27 per cent of MTAWE.
"This would give pensioners an 8 per cent pension increase. We estimate that the price effect of the GST is likely to be in the vicinity of 6 to 8 per cent for older people. This is because most of their spending is on food, services and utilities which have previously not attracted tax.
"In contrast, the Government claims that the price effect will be 1.9 per cent for all groups in the population, including low income and older people. This claim is simply not tenable on the available evidence.
"The Government is offering compensation of a 4 per cent pension increase on 1 July 2000 but 2.5 per cent of this is clawed back in subsequent September and March indexation points so that the real pension increase is only 1.5 per cent. COTA is very worried about this massive shortfall.
"COTA also seeks the Government's support for improving the savings compensation for older people which at present is not enough to cover the loss of value and providing compensation for retired people under the age of 60. These issues urgently need redress," concluded Mr Correll.
15 March 1999
The Council on the Ageing (COTA), said today that it would support Government plans to stabilise private health insurance and to make it more affordable for those older people who had been contributing for many years.
COTA was responding to reports that the Government was to consider a plan of unfunded life time community rating which would mean that people would be encouraged to join private health insurance at a young age but that the cost would increase progressively if they delayed joining to later life. However, if they kept up payments from a young age they would enjoy cheaper premiums in later life.
"Many older people have private health insurance – indeed 51 per cent of COTA members. Most have been contributing for many years and expect to be rewarded for their long term commitment," said Mr Denys Correll, COTA's national executive director.
"The unfunded lifetime community rating plan has considerable interest to COTA because it would reward long term membership, it may help keep costs down for long term members and it may assist in easing the demands on the public purse to prop up the industry (the Government is now spending around one and a half billion dollars a year in subsidies).
"However, it is a plan that only addresses one aspect of the cost drivers in private health insurance which is the ageing fund membership and the drop off in younger members.
"The Industry Commission in its report on private health insurance a couple of years ago showed that increased private hospital costs were equally a cause of increased insurance premiums as was the increased use of private hospitals over public hospitals by private patients.
"If these issues are not dealt with then the unfunded lifetime community rating proposal will not have the desired effect in cost containment and stabilisation of the private health insurance industry.
"COTA is seeking a broad sweep of initiatives in the health sector to stabilise private health insurance. The Government needs to improve confidence in Medicare, address the problem of gap payments in private health insurance, address the cost drivers in private hospitals and medical specialist fees and improve the administrative costs of the PHI industry which are around 12 per cent compared to 3 per cent for Medicare.
11 February 1999
The Council on the Ageing (COTA) today told the Senate inquiry into tax reform that the Government needs to improve the GST compensation for older Australians.
"The Government has done much to regain the confidence of older Australians and this could be further enhanced by improved compensation for the GST. COTA believes that tax reform is necessary and is not seeking exemption of any items," said Mr Denys Correll, COTA's national executive director.
"However, older people do not believe that the offer of compensation will cover the additional costs of the GST."
COTA was presenting evidence at the Senate Community Affairs References Committee inquiry hearings into the GST and tax reform in Melbourne today. COTA made the following points:
"Older people are not big consumers of items that attract high levels of wholesale sales tax. Their expenditure is concentrated in areas that have previously not attracted tax or much tax. These are the necessities of life: food, fuel and power, health related items. They also spend a lot more on services to help with independent living," said Mr Correll.
"The effects of the GST on the budgets of older people has been underestimated. The compensation package should be improved to reflect the cost of living increases caused by the GST.
"Retired Australians are perhaps the most vulnerable group in the tax reform process. They have paid income tax all their lives and will not benefit from the income tax cuts that will be going to wage and salary earners – or from the abolition of wholesale sales tax.
Mr Correll concluded "The time has arrived for the Government to increase the compensation and guarantee this through legislation."
For comment on any media releases or press articles please contact
Council on the Ageing (Australia)
Level 2, 3 Bowen Crescent
Melbourne 3004
Tel: (03) 9820 2655 Fax: (03) 9829 9886
email: cota@cota.org.au
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Copyright © 1997 Council on the Ageing.
All rights reserved.
Revised: 23 October, 2001
COTA National Seniors Policy Secretariat [formerly Council
on the Ageing (Australia)
Level 2, 3 Bowen Crescent, Melbourne Vic 3004
Tel (03) 9820 2655 Fax (03) 9820 9886
email cota@cota.org.au