At the 2019 election, Labor’s vote was hurt by a campaign accusing it of wanting to introduce a “death tax”.
Although Labor did propose to cut tax refunds for excess franking credits, a policy that exempted pensioners, it was not true that it intended to introduce an inheritance tax.
Now claims that older Australians’s savings are at risk are back in twin scare campaigns: from Labor, arguing that pensioners will be put on the cashless debit card; and from the Coalition, that the retiree tax may not be dead.
How are the claims being made?
Labor has been campaigning on the cashless debit card for some time. In July 2021 the party launched a website claiming the “Liberal-National government wants to expand the cashless debit card to include all pensioners”. Labor MP Justine Elliott has been one of the most strident in making the claim.
Similar claims have been made in Facebook ads by MPs including Brian Mitchell, Anika Wells and Pat Conroy, shadow resources minister Madeleine King, and Dickson candidate Ali France.
The Liberal party advertised in late March and early April on Facebook and Instagram warning voters “don’t trust Labor with your retirement savings” and calling on voters to sign a petition to “stop Labor’s retiree tax”, although the link is broken.
The two ads have so far only had up to 65,000 impressions, but could be a sign the Coalition is testing its message for a broader campaign.
A Liberal party campaign website with a petition warning that “Labor’s retirement tax will hurt retirees and low income earners” has been active since March 2019 despite Labor ditching the policy after the 2019 election.
What is the basis for them?
Labor cites statements such as when the social services minister, Anne Ruston, told Seven News in February 2020 that “we’re seeking to put all income management on to the universal platform, which is the cashless debit card”, and a statement to Nine newspapers that the card may become a “more universal” platform.
The government also passed legislation extending the cashless debit card in the four existing trial sites, which defined the age pension as a “restrictable payment”.
The Liberal party ads argue “Anthony Albanese has consistently supported higher taxes during his political career, including the Retiree Tax”.
Why are the claims damaging?
The cashless debit card quarantines 80% of welfare recipients’ payments to a card that cannot be used for gambling or to purchase alcohol, or to withdraw cash.
Labor has argued this causes harms like preventing people being “able to pay cash to buy cheap food at the local market, second-hand goods, a meal or a beer at the RSL, or give cash to their grandkids”.
The retiree tax claim hurt Labor at the last election and is being used to support the generalisation other taxes may rise under Labor.
Is the cashless debit card claim true?
Ruston really did say that, but her comments were referring to moving existing welfare recipients on income management off the basics card and onto the cashless debit card. The latter is accepted at more retailers and works like a normal debit card, unless a person is trying to buy blocked products like alcohol or gambling.
Asked if the card should be compulsory, Ruston said: “I’m not going to pre-empt that.”
After moving people onto the cashless debit card “I think then the conversation needs to be had about what are the advantages of this card are, and it’s up to us to go and sell those advantages in the hope the Australian community will see the value of it”, she said.
Currently, age pensioners may volunteer to be on the cashless debit card. The legislation which defined it as a “restrictable payment” only allowed pensioners to join on a voluntary basis, with one exception.
The power to force pensioners onto the card was limited to remote communities in Cape York, Queensland if they were directed to use the card on the recommendation of the Family Responsibilities Commission, an Indigenous-led statutory body independent of government.
When that bill went through the Senate in December 2020, the government voted for a symbolic second reading amendment stating that “no recipient of the age pension … will be placed on the cashless debit card, with the exception of those who volunteer or are referred” by child protection, social workers or the commission.
In October 2021, social services department officials told Senate estimates the department had provided “no advice” on the question of requiring pensioners to be placed on the card.
In the same month Ruston said: “The Morrison government will not force age pensioners onto the cashless debit card. We were never going to, and never will.”
Verdict: Although at one time the Coalition left this open, it has since ruled it out.
Will Labor stop?
No. Labor has proposed scrapping the card and will capitalise on the fear of its expanded use.
On Monday the shadow treasurer, Jim Chalmers, was asked if Labor would stop making the claim. He replied:
Absolutely not. This is a key issue. Wherever you go in Australia pensioners are worried about Scott Morrison and Anne Ruston’s comments about the expansion of this scheme nationwide. We make absolutely no apology whatsoever for standing up for the pensioners of this country who are petrified that this cashless debit card will be extended to them.
Is the retiree tax claim true?
The ad strongly implies that the so-called “retiree tax” on franking credit rebates might still be Labor policy, which is incorrect. But it does so through vague warnings not to trust Labor and a statement about the past that is true, that Albanese supported it (when it was Labor policy).
Is this legal?
Yes. Australia’s commonwealth electoral legislation does not contain any truth in political advertising provisions, beyond a ban on misleading voters about the process of voting.
The idea of banning lies in political advertising is popular and the death tax misinformation campaign did spark calls for such laws, which exist in South Australia, but weren’t enacted federally.
