What Will Fair Indexation Cost?

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Is Fair Indexation Affordable?

Yes. Remember the $42bn stimulus package - the home insulation projects, the schools building projects (the BER), supposedly to keep workers in jobs (to appeal to union members?), the major age pension increases in the 2009 budget. And Future Fund assets (June 2008) were $64.18bn. The increases for welfare payments cost over $18m to develop, about the cost of a year's fair indexation for military superannuation.

Notwithstanding the uncertainties of recent Government initiatives and the 'rubbery' figures used in many of their estimates, strong economic prospects for Australia are forecast:

  • Australia is a low risk country for capital market investors - well, it was until the Resource Super-Profits Tax (RSPT) on mining was proposed. Proposed changes to this tax, the probable 'carbon tax' and the so-called Fair Work Australia regulations have changed views of overseas investors. However, mining companies will remain major revenue producers in Australia - well, what else is?
  • Increased profits from the mining sector augur well for Australia's future budgets, unless misused by the Government - recent revenues quoted provide enthusiasm, but these may be diminished if mining companies reduce investment in Australia and if China reduces its demand for raw materials - which is quite possible, contrary to some forecasts.
  • Australia's debt as a % of GDP is very low compared with other countries – in the order of 15%, compared with 100% for some other countries. Largely by the efforts of previous Governments

Shouldn't veterans share in the prosperity of the country, the same as do politicians and old age and service pensioners?

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How You Can Help

Let your local MP know that many veterans and ex-service members are facing hardship in their living conditions because their superannuation 'purchasing power' is being eroded by Government inaction, despite the many reviews that recommended changing the indexation to a more equitable scheme, not to the extent of the very generous parliamentarians' scheme, but something more in tune with the Aged Pension scheme – not asking too much. You could suggest that veterans should get a fair go in their superannuation, which they have funded during their years in the ADF, many of which were in operational and wartime conditions.

You could also remind your MP that the Fair Indexation is affordable. Remember the $42bn stimulus package, the schools building projects to keep unions employed, the major age pension increases in the 2009 budget? And you may recall that Future Fund assets (June 2008) were $64.18bn.

Ask the MPs: If fair indexation is affordable for 3.3m Australians why is it not affordable for 63,000 former servicemen and women?