That's why tonight I am also announcing some major structural savings to support the longer term sustainability of our pension system, and the budget more broadly. Central to this has been a review of the qualifying age for the Age Pension, which will be progressively increased to 67 years by 2023, reflecting increases in life expectancy, and consistent with international trends. The rate at which the pension is withdrawn with private income will be increased to 50 cents in the dollar, but a more generous work bonus will be introduced for the first $500 of fortnightly employment income, providing extra assistance to those who work. All existing pensioners will have their payments maintained in real terms, and all singles and couples will receive an increase of at least $10.14 per week. The Government will reduce the generosity of some superannuation concessions for those with greater private wealth. The cap on concessional super contributions will be lowered and the matching rate of the superannuation co‑contribution will be reduced temporarily. Private health insurance rebate Mr Speaker, spending on the private health insurance rebate is growing unsustainably, and disproportionately favours those on higher incomes. From 1 July 2010, the private health insurance rebate will be reduced for higher income earners. The Medicare Levy Surcharge will also be increased to maintain the incentive for those able to pay for private health insurance to continue to do so.
Treasury modelling shows that, under these reforms, private health insurance coverage will remain at more than 99 per cent of its current levels. Family payments Mr Speaker, for higher income earners, the income thresholds for some payments made to families will be maintained at their current levels for a further three years. The Government is also changing family payments to index the Family Tax Benefit Part A to the Consumer Price Index only. This change will maintain the real value of future payments, but they will not grow by as much as they otherwise would. Families affected by this measure will be among the main beneficiaries of other initiatives introduced by this Government, including the doubling of the Low Income Tax Offset; the Education Tax Refund; the Teen Dental Health Plan; and Paid Parental Leave. The global recession has been unleashed on Australia with a brutal, uncompromising force. Since September last year, almost all major economies have gone into recession, dragging ours into recession, as well. Others may be overwhelmed by the scope and the ferocity of the biggest global downturn in memory. But Australians are too strong, too resilient, and too united to be overwhelmed. We know we can withstand the worst the world can throw at us. We know this global recession brings adversity, but it brings opportunity as well. And despite momentous challenges, we know we can emerge more productive and more prosperous than before this crisis began. We know we are capable of this Budget's one central task: Nation Building for the Recovery. But it will take time, and it will take discipline. It will take hard choices; doing more with less. And it will take determination and foresight — to invest now in the building blocks of long term growth and prosperity. To the Australian people I say this is not an easy budget for easy times. These are complex times. And the task in this Budget is complex as well: spending to stimulate the economy now to support jobs, but finding long term savings necessary for fiscal sustainability. Mr Speaker, the 2009 Budget is framed with these challenges in mind.
* It has at its core the biggest plan for nation building investment in infrastructure since the Snowy Mountains scheme.
* Its focus is on an unprecedented push for jobs and productivity, built on the roads, rail, ports and broadband that are the building blocks for sustainable growth.
* It invests in a Clean Energy Initiative — flagship programs in solar energy and carbon capture central to our vision for the low‑pollution economy of the future.
* It continues to build our Education Revolution — the schools and universities and TAFEs and training places we need for the future.
* It invests in world‑class hospitals, research and innovation.
Treasury modelling shows that, under these reforms, private health insurance coverage will remain at more than 99 per cent of its current levels. Family payments Mr Speaker, for higher income earners, the income thresholds for some payments made to families will be maintained at their current levels for a further three years. The Government is also changing family payments to index the Family Tax Benefit Part A to the Consumer Price Index only. This change will maintain the real value of future payments, but they will not grow by as much as they otherwise would. Families affected by this measure will be among the main beneficiaries of other initiatives introduced by this Government, including the doubling of the Low Income Tax Offset; the Education Tax Refund; the Teen Dental Health Plan; and Paid Parental Leave. The global recession has been unleashed on Australia with a brutal, uncompromising force. Since September last year, almost all major economies have gone into recession, dragging ours into recession, as well. Others may be overwhelmed by the scope and the ferocity of the biggest global downturn in memory. But Australians are too strong, too resilient, and too united to be overwhelmed. We know we can withstand the worst the world can throw at us. We know this global recession brings adversity, but it brings opportunity as well. And despite momentous challenges, we know we can emerge more productive and more prosperous than before this crisis began. We know we are capable of this Budget's one central task: Nation Building for the Recovery. But it will take time, and it will take discipline. It will take hard choices; doing more with less. And it will take determination and foresight — to invest now in the building blocks of long term growth and prosperity. To the Australian people I say this is not an easy budget for easy times. These are complex times. And the task in this Budget is complex as well: spending to stimulate the economy now to support jobs, but finding long term savings necessary for fiscal sustainability. Mr Speaker, the 2009 Budget is framed with these challenges in mind.
* It has at its core the biggest plan for nation building investment in infrastructure since the Snowy Mountains scheme.
* Its focus is on an unprecedented push for jobs and productivity, built on the roads, rail, ports and broadband that are the building blocks for sustainable growth.
* It invests in a Clean Energy Initiative — flagship programs in solar energy and carbon capture central to our vision for the low‑pollution economy of the future.
* It continues to build our Education Revolution — the schools and universities and TAFEs and training places we need for the future.
* It invests in world‑class hospitals, research and innovation.
So Wait & Hope For The Best, For All Of Use...
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