a "slap in the face" to pensioners, say Labor MPs

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The deputy chief of the opposition, Richard Marles, is calling the Morrison government's move to reduce judgment rates – putting another $ 800 in the pockets of 1 million retirees – a "slap in the face" to retirees because it didn't go far enough far.

"Pensioners today will soon feel changed. We have seen five reductions in exchange rates since interest rates were changed," said Marles Sky News.

"I think that pensioners today can believe that this decision is a slap in the face of them. This is a government that is trying to balance the books on the shoulders of pensioners".

His criticisms come after the federal government, bending to political pressure to reduce taxes on savings and investments, announced this morning that one million Australian seniors will score an annual bonus of $ 800.

The minister for families and social services, Senator Anne Rushton, told the Today show the bonus would be backdated to July 1, collecting the benefit for more than 600,000 pensioners.

The government will promote retirement payments by cutting the interest rate, which affects earnings on stocks and interest rates.

But Mr. Marles was not the only one to blow up the government's decision. His colleague, Labor colleague Linda Burney, slammed the decision on Twitter a few hours after the announcement.

"The Gov has used retirees to support the budget for years. It's not good enough," he published.

Others have been ready to agree with the Minister of Shadows for families and social services, sharing and rewriting them.

A Twitter user expressed concern that the decision would not benefit those who really need it.

Prime Minister Scott Morrison's government has been impeached after the electoral victory in May, as interest rates have declined again and the rate at which retirees are "considered" to earn income has remained fixed.

Asked about Today, because it took so long to act on speed, Senator Rushton said that trial rates were one of the first things he looked at after the elections.

"The current economic conditions and the current market conditions for financial investments have shown that it is appropriate for us to reduce them to reflect what is actually happening in the market at the moment," he said.

"The cost of living has never been higher."

He said keeping rates has made the lives of retirees "easier and leaner".

"Due to the judging rates, retirees were not required to constantly report social security or Centrelink whenever they could receive a dividend or a payment from a quota or asset held.

"Instead of asking them to do so and constantly having uncertainty about what the payment will be every fortnight, we believe that that return will probably be based on an estimate of what is happening in the market at that time."

However, the government stopped reducing the interest rate to adjust to interest rates, as it was assumed that retirees with substantial assets would get better returns through investments other than savings accounts.

When asked why he was not reducing the rate to adjust to interest rates, Senator Ruston said that retirees and others relied on different income streams.

"One of the things … it was out there in the public is that the overnight cash rate that the RBA (set) is just one of the elements that are taken into account when addressing the returns that are likely to get on financial assets, " she said.

"It is not the only one.

"We examine a whole basket of different activities in which people could keep their financial resources and get an estimate that we believe accurately reflects what people would be able to get on the market today."

Senator Rushton said he expected that the cash-based flow could include increased spending among older Australians.

He said the government's outlay would not jeopardize his promise to make a surplus this year.

Elderly pensioners whose incomes are valued using the pre-emption rate will receive up to $ 31 more every two weeks or $ 804 per year and couples will receive $ 40.50 or $ 1053 a year.

candace.sutton@news.com.au

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