We have an aged pension system that is means tested but the cut offs are quite generous with respect to income and assets. Part pensions with all the attendant benefits are allowed because the cut offs are tapered and adjusted twice a year for increases in average male wages. We do have to let the agency, Centrelink, know everything about our finances and update our details online whenever there is a significant change in our circumstances.
We have a universal health care system, also known as medicare, which is not means tested. Income earners pay a levy on top of their income tax, based on taxable income and everyone is entitled to free treatment in a public hospital and subsidised pharmaceuticals, with a cap on how much you have to pay in any one year. Once you reach this cap, all prescriptions on the pharmaceutical benefits scheme are free for the rest of the year. This is true for all Australians and is designed to help the chronically ill. The costs and cap for pensioners are less than for wage earners. Low income earners get a special health card that gives them the same medical benefits as pensioners. This assists students and apprentices and very low income families.
We also have a universal superannuation scheme that requires employers to pay 9.5% of an employee's salary package into a super fund. Because this scheme hasn't reached full maturity yet, most superannuants still qualify for a part pension. The rate is set to gradually increase over time to 12% but will probably need to be set at 15% to really save on aged pensions. Low interest rates at the moment aren't helping very much.
Hubby and I are part pensioners with income streams from our own savings and also from the government. We have maintained our own private health fund contributions and are able to access private hospital care when needed as well as dental checkups without cost and reduced costs for treatments. Ditto for the optometrists, podiatrists and physiotherapists. Once a year we can have new prescription spectacles but my multifocals incur extra cost. Our health funds costs are subsidised at 30% by the government to encourage private cover to minimise public hospital waiting lists.
This is why we don't need to work to pay for food.
