This measure will extend the education campaign on Age Pension real estate assets, announced in the 2006-07 Budget, which will help Age Pension customers who own real estate, other than their own home, to understand their notification requirements. People will also be provided with information and assistance to support them through the process of understanding the real estate assets test policy and the implications for their Age Pension payment.
Age Pension recipients with a declared real estate asset, other than their own home, will benefit from the targeted education campaign which will help them to better understand their obligations and entitlements. The measure will lead to a net reduction in overpayment of age pensions by $130.9 million over the next three years.
The need for further compliance education was identified through work conducted as a result of 2006-07 measure Fraud and Compliance Improved Assessment of Value of Real Estate Assets.
The Age Pension is a non-contributory payment for people meeting certain age, residence and means test qualifications. It is designed to ensure that senior Australians have adequate means of support. There are approximately 1.9 million Age Pension recipients in Australia and the programme costs $22 billion per year.
The measure will commence on 1 July 2007.
Total Government Funding:
This measure is expected to lead to a net reduction in incorrect payments of $130.9 million over three years.