Policy Area: Senior Citizens

Statement of General Direction:

To ensure that retired persons live in the relative comfort and dignity that their age, experience and previous labour clearly justifies and that they are not discriminated against but encouraged to contribute their knowledge and endeavours to the general community.

Key Initiatives of Policy:

Abolition of the superannuation surcharge in the first Budget of the Coalition Government, to come into effect on 1 April 1998.

Work with the private finance sector to develop a "Home Equity Scheme" for persons solely reliant on New Zealand Superannuation. The objective is to allow these people to borrow up to 20% of value, repaid when the home is sold with interest.

Remove income and asset testing for long stay geriatric public hospital care services and asset testing for long stay geriatric private hospital care.

By 1999/2000 introduce an exemption of $100,000 on the family home on the income and asset test on rest home care for single people and for married couples where both are in care.

Fiscal Implications of this Policy Agreement:

Surcharge abolition.

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

Changes to the superannuation surcharge will require an amendment to the Income Tax Act while any variation to the method of indexation of superannuation will require amendment to the Transitional Retirement Provisions Act. Indexation of benefits is not subject to legislation and the proposed Home Equity Scheme would probably require a new Act.