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> COTA Media Releases and Press Articles
Australian Senior, November 1999, p44
What sort of information do older people need? How do they find it? What are the best ways of delivering it to them? What do seniors think about new technology? Council on the Ageing (Australia)'s Information Manager, Helen Scott, provides some answers.
Information is vital to older people's independence. The right information helps them, their families and carers to make choices.
An immense amount of information is available, but finding it is often difficult.
COTA information services around Australia find that the topics most often asked about are accommodation, social security, financial and legal advice, community services, health, recreation and education.
People find out about services primarily through informal networks such as friends, family or acquaintances. Other 'people' sources are general practitioners and health professionals like chemists, hospital teams, to a lesser extent clubs, associations and local councils and public libraries. The media most used by older people are local newspapers, radio, television, and special interest publications like the Australian Senior. Junk mail has been described by someone housebound as "my window on the world". The obvious conclusion is that services need to use a wide range of materials and outlets to distribute information.
Presentation is important. Print needs to be well spaced and a large size, and choosing high contrast colour combinations and non-reflective paper helps. Using familiar words and avoiding jargon, or labels like geriatric, grannies or aged, is also important.
Research shows the best approach to providing detailed information is face to face, supplemented by written 'take way' material. One-stop shops go some way to doing this, and are being trialled by Centrelink. COTA Victoria is setting one up in Melbourne - in addition to its information service and consultations, it will provide Internet tutoring and online access.
Telephones are a 'next best' option. Most States have freecall central telephone information and referral services. Some examples are Seniors Information Service on 13 12 44 in NSW, SIS on 1800 636 368 in South Australia, and Aged and Disability Care Information Service on 1800 806 656 in Tasmania.
What of the much touted 'information superhighway'? Australian and European research has shown that older people generally have negative attitudes to computers, and low rates of email or web use.
But this picture is rapidly changing.
Recent studies suggest that people over 60 are logging on to the Internet in more numbers than any other group. Australian Bureau of Statistics figures show that the proportion of Australians over 55 accessing the Internet doubled between May 1998 and May 1999, from five to ten per cent. Ageing-related web sites grew from 25 in mid-1995 to 2000 by mid-1998. A good place to start looking at them is COTA's website at http://www.cota.org.au
New technology has enormous potential to benefit the lives of older people – it can transcend time, space, gender and age. The Internet offers intriguing possibilities for maintaining social connections and bringing new experiences and stimulation as well as accessing information. It is vital that older Australians are not excluded from the benefits of the information economy - through lack of exposure, skills or access, or because of cost, or poor design.
COTA has published a booklet in its Strategic Ageing series, called Seniors in Cyberspace – older people and information, which reviews the issues in detail. It also describes innovative programs that are helping older people make the most of information technology, and looks at future scenarios. The book costs $10.00 and is availalbe from COTA on (03) 9820 2655.
Fifty-Plus News, November 1999, p4
How can information technology help older people? What do seniors think about cyberspace? Council on the Ageing (Australia)'s Information Manager, Helen Scott, provides some answers.
New technology has enormous potential to benefit the lives of older people – it can transcend time, space, gender and age. The Internet offers intriguing possibilities for maintaining social connections. It can bring new experiences and stimulation as well as accessing information. Learning online can open new doors for people who are homebound or isolated. Similarly, technologies like teleconferencing, 'smart homes', alarm and monitoring devices can help people be more independent.
The much touted 'information superhighway' is now actually rather old-hat. The concept has been overtaken by the e-words - e-commerce, e-trade, e-info. Considering that governments plan to make information and services available via the World Wide Web it makes sense to ask some questions. Will information continue to be available in other formats? Will people who do not have access to the Internet be disadvantaged? It is vital that older Australians are not excluded from the benefits of the information economy - through lack of exposure or lack of skills or access. Equipment costs and poor design are also barriers.
Australian and European research shows that older people generally have negative attitudes to computers, and low rates of email or web use.
But this picture is changing fast. Recent studies suggest that people over 60 are logging on to the Internet in more numbers than any other group, and using it to shop. Australian Bureau of Statistics figures show that the proportion of Australians over 55 accessing the Internet doubled between May 1998 and May 1999, from five to ten per cent. Ageing-related web sites grew from 25 in mid-1995 to 2000 by mid-1998. A good place to start looking at them is COTA's website at http://www.cota.org.au . Here you can also find websites done by or for senior surfers.
There are programs to help seniors make the most of information technology. At COTA in Western Australia learners can start with a course called "Computing for the mortally terrified". Other State COTAs also run computer and Internet classes, or can put people in touch with courses and computer clubs.
Learning to use a computer does not require any particular talent – computers are patient, provide immediate feedback and require minimal physical skill (unless you are hooked on games!) The skills learned can be transferred to other situations such as online banking or share trading.
COTA has published a booklet in its Strategic Ageing series, called Seniors in Cyberspace – older people and information, which reviews the issues in detail and looks at future possibilities. It also provides answers about the sorts of information older people need, how they find it, and the best ways of delivering it. Contact COTA on 03 9820 2655 for a copy (cost is $10.00).
Australian Senior, October 1999, p48
A significant proportion of people over 50 are in the workforce or want to be. The Council on the Ageing's national policy officer, Veronica Sheen, outlines what COTA is doing on the employment scene.
Many people think the Council on the Ageing (COTA) is only focussed on aged care and retirement incomes. Not so!
For the past two or three years, a consistent theme in COTA discussions has been the problems confronting people over 50 in the workforce. The issue has come to the fore through reports from our members, calls and letters, and through COTA's own research which dates back some years. For instance, COTA produced a major research report in 1992 entitled What now? Over 45 and Unemployed: present realities and future trends for the older unemployed.
In November this year, as part of its activities for the International Year of Older Persons, COTA will be holding a major conference in Adelaide on the theme Older Australians: a Working Future?
While the problems older workers face have been around for some years, the growing awareness that Australia has an ageing population is bringing the issue to public attention.
The equation is simple. If people become unemployed, in their early 50s for example, they could be reliant on government income support until the end of their life. They will be denied adequate opportunities for saving for retirement, for social participation and for making a contribution by using their skills in a job.
There is also disturbing evidence that unemployment is bad for your health. One of COTA's major concerns is that people who stop working before they wish to, may suffer poorer health than those who can choose their own time for retirement.
According to major government reports recently released, the over 50s are increasing their share of jobs in relation to younger people. The major problem, though, is that once a mature age person loses a job it can be very difficult to find another.
Long term unemployment affects about 53 per cent of jobseekers over 45 compared to 27 per cent for younger job seekers. Older people themselves believe age discrimination is the major problem that they face.
COTA's conference in Adelaide from 7-9 November will:
Click here for conference information or contact Karen Richardson on (08) 8232 0422 or krichardson@cotasa.org.au
Australian Senior, September 1999, p4
Only trained and registered pharmacists are able to own pharmacies in Australia. But the pressure is on to open up the market. Council on the Ageing's national policy officer, Veronica Sheen, explains what this could mean for older people.
Would you like to buy your prescription medicines at the supermarket or from a department store? Perhaps you'd prefer to drop in at a combined GP surgery/pharmacy for one-stop prescribing and collection.
These are some of the possibilities the Government is considering in its review of the pharmaceutical industry.
Older Australians are significant users of medicines. Many rely on their local pharmacist for information and advice about their medications and have built up a close relationship with him or her over several years. It is this relationship which pharmacists believe justifies their continuing monopoly over the supply and distribution of most medicines to consumers.
But is the pharmacists' monopoly in the best interest of consumers? Would some medicines be cheaper if they were available in a section at the local supermarket? Would people in rural areas be better off if they could pick up their medicines at the local general store, or get them by mail-order, rather than having to travel to a town where there is a chemist shop?
The Council on the Ageing (COTA) believes that pharmacists play a valuable role in advising older people about prescribed and over the counter medicines. In particular, older people who take a number of medicines are at risk of experiencing adverse drug reactions. A close relationship with a vigilant pharmacist can ensure this doesn't happen.
The present system is likely to be the best way to provide a high quality service to older Australians. Nevertheless, there is room for improvement. If pharmacists want to continue with their monopoly position, they should come to the party and offer better services.
For example, information technology could be used to track each person's use of pharmaceuticals. All dispensed prescriptions are recorded with the Health Insurance Commission. This information should be available to pharmacists with the consent of the customer. This would allow pharmacists to log into a customer's name and find out about medication dispensed by another pharmacist. Privacy and consent issues need to be addressed, of course, but better and safer use of medications would be the result.
Access to pharmacies can be an issue for older people. Pharmacy owners should be willing to locate their business near public transport, close to (or in conjunction with) medical practices, and in suburban and regional shopping centres.
It's important too, that pharmacies exhibit clear price competition by advertising prices of over the counter and pharmacy-only medicines.
Fifty-Plus News, September 1999, p6
Pharmacy is one of the last protected industries in Australia. But do pharmacists deserve their protected status? An inquiry is underway to consider the issues about opening up the industry to greater competition. VERONICA SHEEN of the Council on the Ageing (COTA) takes an older person's view.
To own a pharmacy you must be a trained and registered pharmacist. The distribution and sale of pharmaceuticals is a huge business. This means a pharmacy shop is more or less guaranteed to generate a handsome income for the owner. But should things remain this way?
The local pharmacist is an important person in the life of many older people who may be taking a range of medications for a wide variety of conditions. The pharmacist will know better than anyone about the possible reactions and interactions of these drugs. In addition, many seniors build up a personal relationship with the pharmacist and his other staff in the shop. All this provides an important form of protection for many older people.
But it's time to ask how well the system is working. COTA is posing the following questions and putting forward suggestions as to how pharmacy service could be improved.
What about older people in rural and remote areas who do not have a local pharmacist? Or people who are house-bound? Perhaps mail order, or an arrangement with a local store to get needed medications, might be better arrangements. These could be supported by a toll free consumer drug information service. This could include advice on timing and level of dosages, side-effects, possible interactions, adverse reactions and disposal of unused medicines. There is also a for making such information available on the Internet, in both English and community languages.
Even in cities, it's important that pharmacies are located within convenient walking distance for older people - usually in local shopping centres. Pharmacists could be encouraged to co-locate with general practitioners. Maybe this could also involve co-ownership of medical facilities with general practitioners.
There are also consumer cost issues to consider. Are pharmaceuticals as cheap as they could be? Especially over the counter and pharmacy-only medicines that are not subsidised by the Government? These medications can add a lot to the weekly budget of an older pensioner. COTA believes that pharmacies should be clearly showing the prices of all the medications they stock.
And are people getting the best service possible from their pharmacists? Perhaps training in information technology, communication skills and business skills could result in pharmacists offering a wider range of consumer services. For example, mechanisms could be developed for tracking of a person's total use of pharmaceuticals irrespective of which shop they were bought in. This would allow the pharmacist to better monitor possible dug interactions. The result: healthier customers.
Australian Senior, August 1999, p25
Mature aged people bore the brunt of the recent retrenchment drives of the public and private sectors. Many are now seeking employment in a jobs market that is set against the older worker. Council on the Ageing National Policy Officer Veronica Sheen reports on the problems mature age people face and suggests some solutions.
Employers' attitudes to older workers don't make sense.
They have a blind faith that younger people offer greater creativity, flexibility and more up to date skills.
But this assumption is simply not supported by the facts. Older workers are equally creative and flexible. While they can sometimes be slower to train, they are more consistent in their work outcomes over the long term, have a strong work ethic and a high level of commitment.
So why is the mature worker having problems competing in today's job market?
The starting point is that there are simply not enough jobs to go around. The official statistics tell us that 7.5 per cent of the workforce is unemployed. But this is just the beginning. What about all those people who have given up looking for work, so they are not counted as unemployed?
And what about all those in part time and casual jobs who would prefer a full time job?
Because there are not enough jobs to go around, employers can pick and choose. Many report that they get 50 or 100 applications for any job they advertise. So instead of looking at the comparative merits of candidates, employers set some 'hidden' benchmarks for the job which make it easier to narrow the field. Age turns out to be the most common of these benchmarks.
Australian culture is heavily youth focused. Youth is seen as a more desirable phase of life than middle or old age and this means that young people have an edge in the job market. Not all young people, though. There is very high unemployment, much of which is short term, for people between the ages of 15 and 24 but from 25 prospects are much brighter.
The Council on the Ageing (COTA) believes that Australian society needs to rethink its attitudes to middle and old age. The slogan for the International Year of Older Persons is a society for all ages. Employers need to be educated about the benefits of having a balance of ages in their workforce. Very young people need to be given an opportunity. Older workers need to be valued for their skills and experience. The real costs of losing older workers need to be fully assessed and problems for mature workers need to be attacked at a range of levels.
The Government can play a role in making sure there are opportunities for them to be retrained, especially in the all important information technology area. It can help mature age people make career adjustments through good employment placement and counselling services. Governments are major employers themselves. They can lead the way by bringing in more enlightened hiring and firing practices that give a fair deal to older workers.
COTA is making a submission to the House of Representatives inquiry into older workers.
Fifty-Plus News, August 1999, p4
The Council on the Ageing (COTA) has been speaking to groups of older unemployed workers in Melbourne, Sydney and Adelaide in recent months about the problems they face in finding jobs and the solutions to their dilemmas. Veronica Sheen, COTA's national policy officer, reports.
The story is the same time and time again. Dozens, sometimes hundreds of job applications, few replies and just the occasional interview. Self-esteem and confidence down the gurgler. This is the human face of long term unemployment for many older adults in the Australian community.
But mature age people are speaking up and making it clear that there has to be changes: in employer practices, community attitudes and government policy.
This is what they are saying.
First. Forget the idea that mature age people don't need to work for financial reasons and can be siphoned off into early retirement. The world has changed. Mature age people need jobs for the same reasons as everyone else: to support current living costs and save for future needs. Many have families to support. For example a couple starting a family between the ages of 35 and 40 may be supporting their children in education until they are in their early 60s. And as we all know, governments are becoming more tight-fisted by the minute. They want the older population to be as independent of government support as possible. So saving for retirement is a major priority for mature age people.
Second. Employment is just as important for social acceptance and value for someone in their fifties as someone in their twenties or thirties. Mature age people are devastated by job loss. Unemployment creates depression and reduces confidence and self-esteem. Whether you are 25 or 55 the impact of unemployment is just the same.
Third. The idea that mature age people are not as good workers as younger people is just not true. They are going out of their way to retrain themselves, to be adaptable and flexible and not to demand exorbitant wages. But at the end of the day, employers' prejudices, built up through media images, mean that younger people are given preference.
Fourth. People in their fifties are not looking forward to retirement. The old stereotype of working for 40 years and retiring with a gold watch is hopelessly outdated. Traditional ideas of retirement for the current 50 somethings of the millenium is just not on the agenda of their lives. Most envisage that there will be a flow on from paid employment to some other form of making a contribution to society and ongoing activity.
What can be done?
Top priority has to be changing employer attitudes. This will not be easy. But one thing is sure to make them change: evidence that they are losing money because they are not nurturing the skills and experience of the mature workers.
Attitudes to ageing in the community need to change as well. The International Year of Older Persons banner is ' society for all ages'. Valuing older Australians will mean they get a better share of job opportunities.
Finally, government policy can make a difference by recognising the problem and ensuring that mature workers are well trained for the needs of the millenium workforce.
Australian Senior, July 1999, p26
The Government's deal with the Democrats on tax reform is an improvement on the original but is it good enough yet? Veronica Sheen, national policy officer of Council on the Ageing, gives her assessment.
The message seems to have been received that the first compensation offer for older Australians was far from enough. The Government, with help from the Democrats, has taken on some of the COTA's concerns and brought the compensation up to an ongoing pension increase of 2 per cent in addition to the cost of living adjustments for the GST.
Another big improvement on the first package is that self funded retirees aged 55 and over will be eligible for the self funded retirees supplementary bonus. This entitles them to a maximum payment of $2000 if they earn $20,000 or less and is then decreased accordingly for people earning up to $30,000. Under the previous arrangement people had to be of age pension eligibility age - 65 for men and 61 for women.
Of course the big area of controversy in the tax package is the exemption of fresh or basic foods. For many older people this will be a big plus – no GST on the staples of meat, fruit and vegetables, bread, milk and eggs.
But not all older people will benefit that much from this exemption. Prepared and take-away meals can be a big part of many older people's diets, especially if they live alone. For example, it may be more economical to buy a small portion of prepared salad from the supermarket deli rather than buying all the ingredients. And what about when you take the grandchildren to McDonalds for a treat?
Other parts of the new package which will be of benefit to older people will be the GST exemption on S2 medicines sold only at the pharmacy, such as medicated cough mixtures, and the exemption of complementary medical services such as naturopaths and acupuncturists.
On the other hand older people will still have to pay bank account debits tax until 2005 and financial institutions duty until July 2001.
The new package is certainly better than the first package but questions still remain.
Older people spend much of their income on services and utilities which under the GST will increase in cost by 10 per cent.
COTA intends to keep a close eye on developments and conduct more research on the impacts of tax reform on older Australians.
Fifty-Plus News, July 1999, p4
The Democrats went in hard in meetings with the Prime Minister and Treasurer to get a fairer tax package for Australians on low and fixed incomes, many of whom are older people. Overall the new package is a marked improvement on the original but some questions remain as to whether it is good enough to protect older Australians from the effects of the GST. VERONICA SHEEN, the Council on the Ageing's national policy officer, explains the good and the bad of three of the main changes.
The new offer consists of an ongoing increase of two per cent in the pension, instead of 1.5 per cent in the original offer. Many older people will be confused by reports that they will get a four per cent increase in the pension. They do get four per cent but this is, in effect, an advance payment paid only on 1 July 2000. Over time the four per cent is 'adjusted' so that the effective increase on top of the cost of living adjustment is two per cent.
The question is whether this increase is enough to cover all the additional costs that the GST will involve. For example, older people spend a higher proportion of their income on utilities and services than the average, so will be more affected that the rest of the community.
Many older people will benefit from the exemption of fresh and basic food from the GST. This means that fresh food and vegetables, eggs, milk, cheese, bread and meat will be without as GST, as will basic items such as pasta, rice and canned soup.
However, COTA is concerned about some groups of older people whose main sustenance comes from prepared and take away foods. For example, 40 per cent of women and 18 per cent of men over 65 live alone. It is precisely the older person living alone who is more likely to be buying the quarter or half chicken (with GST) rather than the whole roast (without GST). It is very unlikely that they will be buying an uncooked chicken and roasting it for themselves, which would be without a GST.
The fresh/basic food exemption seems to offer most benefit to households of two people or more and least benefit to single person households.
The Democrats also won improvements in the compensation for self-funded retirees. The self-funded retirees supplementary bonus is an untaxed bonus now available to people aged 55 and over on 1 July 2000 but not in receipt of a pension who are nevertheless retired and fully self-supporting. It is worth a maximum of $2000 per person phased out between $20,000 and $30,000 of taxable income as a one-off payment. The original proposal set the eligibility age for this bonus at the age pension eligibility age. While COTA welcomes the change to allow all self-funded retirees over 55 to get the supplement, we still do not know whether this compensation will be enough.
In summary: the new package is certainly better than the first package but questions remain. Has the Government accurately measured the cost of living impact of the GST on older people? And will the compensation and the pension increase be enough?
COTA intends to keep a close eye on developments and will be doing more research on the impacts of tax reform on older Australians.
Australian Senior, June 1999, p27
What issues make seniors hot under the collar? Veronica Sheen, the Council on the Ageing's national policy officer, put this question to a group in Adelaide.
Waste and inefficiency in the health system is one pet hate of older Australians - things like overuse of services and pharmaceuticals, unnecessary tests, and lack of alternative cheaper therapies that could treat some conditions better than expensive medical treatments. And why can't less expensive nurses and paramedics replace doctors for many basic, routine medical procedures?
Waste and inefficiency results in deficiencies in important areas of the health system lengthening hospital waiting lists. Reducing the waiting lists for non-urgent surgery was one key priority for the group and there were also concerns about the lack of public dental care, prevention programs and rehabilitation services.
Despite this, there was strong support for the public health system. One gentleman reported that he had surgery in both the public and private systems in recent times. His experience was that the treatment was exactly the same in both. "Even the food was the same", he said.
Nevertheless, those who private health insurance liked to have a choice of doctor and immediate access for non-urgent treatment. A number of people said that they had paid for private health insurance for many years without using it and couldn't afford to keep it up when they retired. One person came up with an idea for discounted rates for pensioners – what an idea!
On the GST front, most people were concerned about the likely effect on their budgets. Many said they were struggling now to meet costs for repairs and maintenance, while others said they were only getting by because they ate into their precious savings.
The message that came through loud and clear was that the Government needs to improve the GST compensation.
Some people, especially those still in their 50s or early 60s were keen to get a paid job but said they faced many barriers. Discrimination because of their age was the main complaint. Others said that they could not afford the training they needed to get a job (for example in information technology.
For many older Australians, the problem in getting work is also due to the lack of recognition of their experience and expertise. They are overlooked because they do not have the right 'piece of paper' (formal qualification). For some their frustration was that they did have the qualification but, because it was gained overseas, it was not recognised in Australia.
Some people receiving an Age Pension said they would love to get a part time job to help out a bit. A little extra, they said, would help overcome the problems of maintaining a reasonable standard of living and being able to do things that would improve their quality of life.
COTA will send a report of its findings to the Government.
Fifty plus News June 1999, p4
This year, several of the Council on the Ageing's key Budget priorities have come to fruition. COTA's national policy officer, Veronica Sheen, explains.
Advocacy does bring results! In this year's Federal Budget, the Government has responded favourably to the message the Council on the Ageing (COTA) delivered about the needs of older Australians.
Here's how older people have benefited.
COTA identified better coordination of community care as a high priority. It's pleasing, then, that the Government is introducing a new service which, through a single phone call, will provide information about community care services in your local area. Older people themselves, family members, general practitioners, and other service providers and health professionals will be able to use this service. It will become operational in most areas from mid 2000.
Additional funding for respite care for carers of people with dementia and other cognitive illnesses is another Budget success story.
COTA has been asking that greater resources be put into preventative health measures for older people. The Government has come to the party with the following new programs.
COTA has been very concerned about the spiralling costs of private health insurance in recent years and we have advocated action to bring the situation under control. This has been an important priority as 51 per cent of our members have private health insurance and have been struggling to keep up payments.
The Government is introducing a system of Lifetime Health Cover as a means to stabilise the costs of private health insurance by encouraging long term membership. The scheme will reward people who have been making contributions over many years. In addition, everyone born before 1 July 1934 will be exempt from any cost penalties and will be able to take out private health insurance at the lowest rates whenever they choose.
Older people who have been in nursing home care since before 1 October 1997 and who move to another facility will not pay the accommodation charge and those who have already paid the charge will be reimbursed.
The Budget has delivered additional funding of $78 million over 4 years for primary health care for indigenous Australians and $20.6 million over four years for improved living conditions in remote communities. COTA welcomes this additional funding because of significant concerns we have about the reduced life expectancies of indigenous Australians. COTA has made a number of recommendations on indigenous health care in its Budget Submission in the last two years.
Australian Senior, May 1999 p35
The Government is conducting an inquiry into older workers,
and about time
says Council on the Ageing's National Policy Officer Veronica Sheen
Older people are currently not given a fair go in Australia's workforce and this situation urgently needs to be changed.
We are not talking about people being made to keep working until they are in they're 70s and 80s, although some may wish to. We're talking about a sea-change from the present state of affairs where many people in their fifties are encouraged to take early retirement regardless as to whether or not it is in their best interest or what they most desire.
Australian business has been deluded into thinking that the only good workers are young workers - not surprising given that this culture extols youth. As a result older workers have become invisible to the average employer, often to the detriment of their business.
There is a lot of research to show that older workers bring immense benefits to business. They have a strong work ethic, a lot of skills and knowledge, and, most importantly, they are willing to learn and adapt. But they need a chance to do so. Often it is just assumed that they will wish to retire, rather than keep working.
Governments, to date, have not taken the issue of mature age employment seriously. They have assumed older people should move over to make way for younger workers.
But this assumption no longer stands. Many older people need to keep working into their sixties for many reasons. They may still have family commitments and a mortgage, wish to save up for retirement, and perhaps cannot rely on governments to take care of their needs.
The Council on the Ageing will be delivering three important messages to the Government about what will happen if it does not begin to plan for and manage our ageing workforce.
Social consequences: If people do not have opportunities to continue to work into older age groups they will not be able to support themselves in their old age. They will be more vulnerable to poverty and homelessness, and less able to keep themselves in independent living.
Economic consequences: There will be very large costs to governments, particularly the Commonwealth, in terms of income support payments, health care costs, and community support. There will also be a drain on Australia's human capital and losses in productivity.
Political consequences: There will be significant disaffection amongst people over 45 which could manifest in political unrest.
Australia needs a new outlook on older workers.
Business needs to change its attitudes and practices, and governments need to educate business about older workers as well as providing support and retraining for older workers themselves to make necessary transitions.
FiftyPlus News, April 1999
The Government has come up with a bold new plan to encourage more people to take up private health insurance. This has important implications for older Australians. Veronica Sheen, the Council on the Ageing's national policy officer explains.
The present system under which private health insurance operates is based on a 'community rating'. This means everyone pays the same premiums, with no account taken of risk. So low users of health services subsidise the high users.
The new scheme the Government is proposing would scrap this system.
Under the proposed scheme, if you are already a member of a health fund, or are willing to join within 12 months, then you would pay the same as everyone else regardless of how sick or how old you are.
However, if you are not a member and are not willing or able to become a member within the first year of the plan, then you would be paying much higher premiums depending on how much older than 35 years you are.
People under 35 need not worry, but after 35 you pay an extra 2.5 per cent in premiums for each year you wait to join. So if you are 55 years old and wish to join you will be paying half as much again as someone 35 or another 55 year old who has been a long term member. And if you are 75, you will be paying double.
The scheme holds a promise of keeping premiums low for people who have been long term members of health funds. At the Council on the Ageing (COTA) we have found that around half our members, most of whom are on a pension, keep up their private health insurance although it is costly and requires sacrifices because they have little confidence in the public system. They would welcome a system that would keep a lid on the health fund costs and reward them for their loyalty.
COTA agrees that something urgently needs to be done to reduce the cost of private health insurance for older people. But will the proposed plan, called Lifetime Health Cover, be the answer? We think the plan has merits, but we are not convinced that it will be enough.
First, we believe that restoring confidence in the public system would be a good start in addressing the problem that the health funds complain of - that too many of their members are high users of health services because of their age or illness. If the public system worked well, then many older people may be inclined to give up their private health insurance, making for a more balanced membership base in the funds.
Second, the Lifetime Health Cover plan does not recognise that higher insurance premiums are also caused by increasing costs in private hospitals and medical treatment and because more fund members are choosing to use private hospitals instead of public hospitals.
Lifetime Health Cover is definitely a proposition worth considering, but it should be part of a broader reform of the health system.
Australian Senior, April 1999 p27
How can older people will be adequately compensated for the GST? Council on the Ageing national policy officer Veronica Sheen puts forward a suggestion.
The Council on the Ageing's (COTA's) analysts have been looking hard at the likely effect of the GST on older Australians. Their conclusion: it is possible that an older person household could have a cost of living increase of six to eight percent.
The Government is offering a 4 percent increase in pensions. It is also promising to maintain future pension payments at 1.5 percent higher than they would be if normal indexing arrangements applied. This, the Government says, will more than compensate for the GST.
But COTA is worried that this compensation package is deficient.
The age pension has for some time been set at 25 percent of male total average weekly earnings (abbreviated as MTAWE). From July 2000, the pension will slightly exceed this 25 percent benchmark, because of GST compensation. At the same time, wage and salary earners will receive considerable benefit from income tax cuts. However, average total weekly wages will remain the same (assuming no major wage hikes). Therefore disposable income for wage and salary earners will increase, but there will be no flow-on effect to pensioners.
It would seem sensible then, to adjust the pension benchmark upwards. COTA believes that lifting the benchmark from 25 to 27 percent of MTAWE would be an effective way to ensure GST compensation is adequate and remains robust over the years.
This new benchmark should be embodied in legislation within the Social Security Act , as is the present 25 percent MTAWE benchmark.
COTA will be lobbying the Government further on this issue. We believe that adequate compensation, combined with good legislation to prevent its erosion, will ensure that no older people will be worse off with the GST.
Fifty Plus News, March 1999, p7
The GST could impose a serious burden on older people
unless the Government substantially increases the compensation package argues
the Council on the Ageing (COTA).
Veronica Sheen, COTA's national policy officer explains.
The current Senate Inquiry into the GST and tax reform is revealing a range of problems that the Government had not envisaged. COTA has recently been telling the Senate Inquiry about its concerns that the Government's offer of compensation to older people is nowhere near sufficient. Our research has shown that the Government may have underestimated the effect that the GST will have on older Australians.
There are a number of issues:
COTA's research shows that older people are spending more than the rest of the population - as a proportion of their income - on food, gas and electricity, medicines and services to help them maintain independent living. Indeed they spend around 40 per cent of their income on these goods and services compared to non-retired singles and couples who spend around 25 per cent of their incomes on these goods and services.
Consider the case of David and Margaret, a retired couple in their 70s. They receive a full pension and have a small income from investments. They do not have a high enough income to pay income tax.
Their income enables them to live reasonably well without any frills but there is no money left over for holidays, restaurants or luxuries. They spend around 30 per cent of their income on food, 55-60 per cent on such things as gas and electricity, insurance, repairs, petrol and car maintenance and around 15 per cent on entertainment (some concerts, occasional film, plays etc) and the upkeep of their pets.
David and Margaret have done their sums and they believe their cost of living will increase by between 5.5 per cent and 7.5 per cent. Needless to say they – and COTA - are not convinced by the Government's claim that the 4 per cent pension increase is generous.
When the GST is introduced in July 2000 the pension and all other Government support payments will be increased by 4 per cent. The Government has promised to keep income support payments 1.5 per cent higher than they would have been had normal cost of living increases applied. But this all depends on whether we believe that the price effect of the GST on older people's budget is within the range that the Government has estimated. COTA is concerned that the price effects might be considerably more.
The tax package also provides some compensation for older people's savings which includes the Aged Persons' Savings Bonus and the Self-funded Retirees Supplementary Bonus. These are means tested bonuses of $1000 and $2000 respectively available in the first year. COTA is concerned that older people drawing some income from their savings and investments will face the devaluation of these assets for the rest of their lives not just for the first year. Again, we are not convinced the compensation will be enough.
COTA's submission to the Senate Inquiry into the GST recommends that the Government increases the compensation and ensures that the compensation is maintained by rigorous legislation so that it can't be whittled away in the future.
Australian Senior, February 1999, p26
The Council on the Ageing (COTA) will be pushing on all fronts to get the best possible outcomes for older Australians during the International Year of Older Persons. Veronica Sheen, COTA's national policy officer outlines the issues at stake.
Australian Senate committees are presently holding inquiries into a large number of issues relating to the implementation of the GST. The outcomes of these inquiries could have a big impact on how the GST is implemented in July 2000.
COTA is presenting a case to the Senate Committee on Community Affairs that the best option for making the GST fairer to older people, especially those on low and fixed incomes, will be to exclude food for household consumption.
The next best option is to improve the compensation package.
Age pensioner households spend on average around 28 per cent of their weekly budget on food whereas wage and salary earner households only spend around 18 per cent. The compensation package for pensioners has not taken this into account so may not be enough to cover the price effect of the GST.
The Government won its election promise of a 30 per cent rebate for private health insurance in the Senate late in 1998. Early this year though, the debate on health care was ignited by Victorian Premier Jeff Kennett who argued that Medicare should be scrapped. Medical professional groups, including the Australian Medical Association weighed in, supporting the Premier. These groups argue that Medicare is no longer affordable and should be a system only for those who can't afford private health insurance. They place a strong emphasis on the role of the ageing population in driving up health costs, particularly the cost of private health insurance which has in turn put pressure on the public system.
COTA argued that the ageing population is a small contributor to cost increases and the real causes are increased use of private hospitals and the increased costs of treatment in private hospitals.
COTA believes that hospitals should remain free and available to everyone
A system for the poor and a system for the rich will only mean that we have two standards of health care.
In December 1998, an unemployment rate of 7.5 per cent was recorded for Australia- the lowest since 1990. This good news provides an ideal starting point for some serious thinking about older people and the workforce.
COTA believes older people have been hard hit by unemployment in recent years. This is not so much reflected in older people's unemployment rates but at the rate at which older people take the option of early retirement because of age discrimination and lack of opportunity and encouragement.
COTA is lobbying the Government to implement specific employment, education and training programs for older people, to start a campaign to counter age discrimination in the workplace and to improve employers attitudes to their older workers.
Fifty Plus News, February 1999, p6
One way the Government could celebrate the International Year of Older Persons is by building up a strong and viable public health system, argues Veronica Sheen, the Council on the Ageing's national policy officer.
Health is one of the foremost concerns of older Australians and access to good health care a top priority. While many older people have welcomed the Government's 30 per cent private health insurance rebate, others are concerned about the future of the public health system - Medicare. The Council on the Ageing (COTA) has stepped into the debate arguing that all older Australians will be best served by having confidence in Medicare and the public hospitals it funds. This will be an important campaign for COTA in the International Year of Older Persons.
Australia needs a good public health system. It should be well resourced and not means tested. We still do have a good public health system by international standards, but many older Australians have lost confidence in it. They fear that they will have to wait for treatment and that a stay in a public hospital will be an unpleasant and stressful experience.
These perceptions are often fed by media reports which always focus on the negatives and ignore the thousands of positive experiences of Australians in public hospitals everyday. Nevertheless, COTA has concerns about some aspects of public hospitals at the moment, particularly waiting times for treatment in a few areas of specialisation, early discharge practices and lack of convalescent facilities. Some of these problems are a result of inadequate funding but some problems are due to short supply of medical specialists.
The Government believes that a resurgence in the numbers of people with private health insurance will take pressure off public hospitals. That's why it's pouring around $1.5 billion a year to convince us that private health insurance is a good deal. But we, and the Government, may be disappointed in the result.
The public hospital system may continue to be under pressure. The rebates are drawing scarce resources away from the public system. At the same time, the pressure will still be on because privately insured individuals will continue to use the public system for emergency care, complicated care and for procedures likely to entail high copayments in the private system. The subsidy scheme could also worsen pressure on public hospitals by enticing medical specialists further into private practice. This would result in less people gaining access to public hospital care. The problems of public hospitals will continue.
COTA argues that the Government should be focusing on fixing up the problems of Medicare, particularly the waiting times and the discharge practices. It should be building public confidence in Medicare and public hospitals. We need Medicare because it keeps the costs of health care down for everyone and it means we have a good health system that is available for all, regardless of income. We all have a stake in making the public health system a success.
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Copyright © 1997 Council on the Ageing.
All rights reserved.
Revised: 30 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