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Thursday May 17, 2012

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Blog: Stimulus idio(t)syncrasies

Posted by: By Derryn Hinch, 3AW Drive | 12 March, 2009 - 4:04 PM
People who haven't lived in Australia getting Rudd's $$$ As the latest batch of stimulus goodies starts to hit grateful recipients’ bank accounts this week there has been much debate – and Government concern – about how people will spend their $900 windfall.

Will you spend it here? Will it be spent on Australian-made products? Will it be spent on overseas holidays? Will it be spent at all or hoarded – like the last one – for a rainy day. Or a jobless day.

Well, we now know where some it is has been going. Overseas. And the Government is directly responsible. Nearly 70,000 people whom live overseas and are paid part-pensions from Canberra received the $1400 payment in December or $2100 for a couple.

People in 21 countries – mostly in New Zealand, Italy, Greece, the Netherlands and Spain. Even if they only lived and worked here for a short time.

A classic example is a very happy Barbara Tokley a British-born Auckland resident. She worked in Australia for five years in the 1960s. She gets the $900 – like she collected the $1400 in December. Even though she hasn't lived or worked here for forty years!

It is true we have reciprocal pension deals with some countries. And the argument is 'well, I lived and worked there for a while and paid taxes so I am entitled' but surely that shouldn’t apply to one-off bonuses.

In the United States you have to live and pay taxes – including a specific Social Security tax – for 10 years. And when pension time comes around, if you live overseas, you are only entitled to a small portion based on your last earnings in the U.S.

And compare Barbara Tokley's windfall with the plight of Sean Rawson here in Melbourne.

He's a single father, a low-income earner, getting just over $11,000 a year. That $900 will come really handy, right? Wrong. He's not eligible.  Sure he earns less than the $80,000 limit for the full refund but he also earns less than $15,000 which the Tax Office has set as a 'tax offset' limit.

Didn't hear Santa Claus Rudd talking about that. If Sean Rawson was unemployed and getting a dole cheque he'd get it. If he was on New Start he'd get it. If he was a pensioner living in New Zealand last December he would have got it. But he's a genuine battler. He doesn't get it. And frankly, I just don't get it.

Blog comments Your Say

  • When the stimulus payments were announced there was no mention of being a resident.

    I assumed at the time this meant that pensioners living overseas would get the stimulus.

    This was a deliberate intention.

    By the way due to changes in the agreement with Britain people like Barbara Tokley can no longer be granted a pension.

    Peter from Rosanna Monday 16 March, 2009 - 12:15 PM

  • Derryn

    I get very cross about these handouts full stop (I will recieve $250 but would rather not). We are going into massive debt which will need paying back at some point and I don't believe this is the best use of our money. In times of uncertainty, I suspect that a large portion of the handouts will end up going into a the recipients savings account - I'm not sure how this will stimulate the economy! I would have much rather have the money spent on infrastructure projects (new roads/ rail / hospitals etc) at least then we would have something to show for it and it would create jobs. I'm really concerned about our economic management under the Rudd government.

    Mike Tighe Friday 13 March, 2009 - 10:11 AM

  • mr rudd is to soft to be running this country hes waisting the time of the people of this country i think hes forgotten what a good hard days work is about?

    chris richards Thursday 12 March, 2009 - 11:37 PM

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