Opinion
As we head to an election, does either party care about retirees?
Bec Wilson
Money contributorIf you really understand how money works in retirement, you might be wondering – does anyone in Canberra even know retirees and pre-retirees exist?
This year’s budget and budget reply were clearly targeted at families and younger workers, with little more than crumbs offered to midlife and older Australians.
This country is getting older fast, and retirees – and those approaching retirement – are being treated like an afterthought.Credit: Simon Letch
Despite making up more than 50 per cent of the voting public, older Australians once again got treated like a bolted-on voting bloc. Taken for granted. Overlooked. Politically invisible.
Let’s unpack what’s on the table, what’s missing, and whether either side has really shown up for the generations who built the economy and are now trying to retire with dignity. And let’s remember – with the election only announced this week – there’s still time for the major parties to step up and serve older generations better. It could be the difference required to gain the balance of power.
1. Tax cuts: nice headline, but most retirees won’t see a cent
There’s a lot of talk about “everyone” getting a tax cut in the Labor budget and legislation subsequently rushed through. But here’s the truth: You only benefit if you’re paying tax. And most retirees don’t.
As always, if you’re trying to retire with dignity and independence, you’re expected to just figure it out.
In practice, most full-rate pensioners pay no tax at all. That’s thanks to the tax-free nature of retirement income streams from superannuation, and the tax-free threshold plus offsets like the Seniors and Pensioners Tax Offset (SAPTO) and the Low Income Tax Offset (LITO), which lift the effective tax-free thresholds to above the age pension.
And let me tell you – that doesn’t mean ‘they’re loaded’ or don’t feel the pinch from the cost of living rising.
So unless you’re earning additional taxable income – from part-time work, rent, or super in accumulation phase – you won’t benefit from tax cuts Labor has promised for 2026 and 2027 at all. For many retirees, this is just another headline that sounds good but means nothing in reality.
2. Deeming rate freeze: one quiet win (for now)
Labor’s decision to freeze deeming rates until 30 June 2025 is a meaningful win for pensioners with financial assets. Deeming is how Centrelink guesses the return you’re earning on your savings, and it affects how much pension you get if you’re assessed using the income test.
The rates are still artificially low (0.25 per cent and 2.25 per cent) – so retirees with term deposits and shares are being assessed as earning far less than they actually are. And that keeps more of their pension intact. This move helps around 450,000 pensioners.
The concern? The Coalition hasn’t yet said if they’ll match it. In an environment where retirees are already stretched, letting deeming rates rise could quietly strip away hundreds – or thousands – of dollars a year from people who’ve done the right thing and saved to fund their own retirements – that would be a tough break and one I’m sure many would like to know about before the election.
3. Fuel excise: short-term sugar hit, not real reform
Peter Dutton’s promise to halve the fuel excise for 12 months sounds appealing – it could save around $750 a year for single-car households, and up to $1500 for those with two vehicles. But it’s a blunt instrument.
Many older Australians drive less as they age, or they’ve already downsized to hybrid or electric vehicles, and if that’s the case, they won’t benefit at all.
Again, this sounds nice in theory, but in practice, it risks feeling like yet another hip pocket headline grab aimed at families, while they’re once again sidelined when it comes to direct benefits for their own cost-of-living pressures.
4. Medicare and medicines: small wins, but the system is still straining
The government boosted bulk billing incentives and reduced the cost of common PBS medications – which is helpful, especially for those managing chronic health conditions. And the opposition offered to match it.
The government has boosted bulk billing incentives and reduced the cost of common PBS medications.Credit: Getty Images
But the big picture is still worrying. Out-of-pocket costs for specialists are rising, wait times are ballooning and preventative care and in-home supports are still wildly underfunded and health insurance is rising next week by an average of nearly 4 per cent again.
Yes, the changes help a bit—but there’s no big structural vision here for how we fund and deliver healthcare in the second half of life so it slows the impact of chronic disease.
Older Australians know what it’s like to get bounced between GPs, specialists, scans and back again—with the bills piling up. And this budget doesn’t change that.
5. Energy relief: band-aids on a bigger problem
Labor’s energy bill rebate offers some short-term relief. But with rising electricity prices and older homes that are difficult to heat and cool, this is a temporary patch on a long-term problem.
Meanwhile, the Coalition says they’ll bring prices down by fast-tracking gas projects and capping gas prices, though that depends on market behaviour, and could take years to show up in household bills.
Here’s what older Australians actually need. Rebates for solar, insulation and efficient appliances, energy efficiency upgrades targeted at pensioners and support for switching off gas where it’s expensive and unreliable. Instead, we got a few one-off payments and vague promises. It’s not enough.
6. Support at Home: long-overdue reform, but will it clear the queue?
One of the biggest issues facing older Australians is the huge backlog of people waiting for in-home care packages – some stuck for months or even years without the support they need to stay safely at home.
The government is moving ahead with its new Support at Home program, set to launch in July 2025, which aims to simplify and improve access to in-home aged care. In this budget, they’ve committed more than $291 million over five years to continue rolling out these reforms, along with funding for digital systems, assessments, and the transition to a new Aged Care Act.
There’s also a $2.6 billion wage boost for aged care workers across home care and residential settings, which could help with workforce shortages.
That all sounds promising – but here’s the catch: the budget didn’t include a clear injection of funding for more actual home care places now, or a strategy to immediately reduce the backlog.
So while the long-term reform is coming, many older Australians already in the system are still facing delays, uncertainty, and unmet care needs. And the opposition? They’ve said nothing yet about whether they’d boost access or match the government’s reform plans.
7. The 30 per cent super tax: Full steam ahead
One measure that was confirmed in this year’s budget is the controversial 30 per cent tax on earnings from super balances above $3 million, due to start on 1 July 2025, but which hasn’t yet passed the Senate.
The Albanese government is pressing ahead with the plan, despite widespread industry criticism – especially from SMSFs and trustees who say it punishes those who’ve played by the rules.
The tax is projected to raise billions over the coming years, and while it only affects a small percentage of super members for now, that number will grow, as the threshold isn’t indexed. The Coalition remains opposed to the policy, arguing it erodes trust in the super system – but they didn’t mention it in their budget reply.
What’s missing? Vision. Strategy. Respect.
There’s no long-term plan for ageing well in this budget. Nothing bold on aged care, home care reform, housing security and concessions for downsizers, help for older renters or the growing costs of health and independence in later life.
This country is getting older fast. And the people already in retirement – or on the way – know it. They’re watching. They’re voting. And they’re still being treated like an afterthought.
My verdict? Families got the spotlight. Younger workers got the splash. Boomers and Gen X got the silent treatment. And as always, if you’re trying to retire with dignity and independence, you’re expected to just figure it out.
Bec Wilson is author of the bestseller How to Have an Epic Retirement. She writes a weekly newsletter at epicretirement.net and is host of the Prime Time podcast.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making financial decisions.
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