PENSIONS

Evening Post, Volume CXVI, Issue 103, 28 October 1933, Page 10

PENSIONS

FEDERAL 1 CRISIS

GOVERNMENT'S FIRM STAND

(Frj>m "The Post's" Repr«Mntttiv».) SYDNEY, October 19. Towards ,the end of last week it appeared as though a crisis would develop in the Federal Parliament which would cause the Government to go to tho electors almost immediately. The position arose through, a proposal by tho loader of the Country Party (Dr. Earla Page) that the property provisions of. the Pensions Act should be-liberalised. It was estimated that the cost of tho concession would bo £500,000, and an view of the sacrifices of revenue already, decided upon the Government could not see its way to accede to the reques* that had been made. The Federal Lab« our Party, anxious for an early electio* in the vain hopo that there would b« the customary swing of tho pendulum*, was quick to size up tho position an* threw its weight behind the Leader. o< the Country Party. It was claimed that if the issue went to the vote the Gov« eminent would be in a minority of sis*, However, the Cabinet was not to b4 stampeded, and as soon as this becam* apparent there was talk of a compromise. Now tho possibility of even 4 compromise is vanishing, for there »t« very few members of the House of Re* presentatives anxious for an election. In view of what has happened it i» interesting to study the way in whic'« the pension bill has grown in recent years. It is not difficult to understand then why the Federal Cabinet should resist any proposals that would make th<» burden greater. ,In 1924-25 the Com* inomvealth revenue was £68,000,000. The old-age and invalid pensions, bill was £7,000,000, or 10.3 per cent. Thi» present Budget provides for a total Commonwealth revenue of £66,500,000, and for pension payments amounting to £11,250,000 or 17 per cent. Therefore, whilo the revenue has declined by, £.1,500,000 tho cost of pensions has in> creased by more than 50 per cent. Liv« ing costs are now welljjolbw the 1921 level, and after making allowance fof increased population the effective pension today is higher than it was, sayi ten years ago. At present the property of a deceased pensioner abovo £50 in value is liafili for tho amount of pension paid during the pensioner's lifetime. This provisv ion has caused many thousands of pen> sioners in comfortable circumstances U surrender their pensions rather than encumber tlieir property. About 12,000 pensions have been surrendered in'sueh circumstances, and an unknown number of people owning property have refrained from applying for pensions. Now Dr. Page proposes to iucrease the exemption to £600. It. i.s felt thtn if lie succeeded he would add greatly to the number of pensioners in Australia,