COTA Australia is urging the Federal Government to ensure this year’s Budget delivers genuine fairness across generations, warning that the real divide in Australia is not between generations, but within generations – between those doing well and those being left behind.
COTA Australia Chief Executive Officer Patricia Sparrow said the upcoming Federal Budget must resist the temptation to frame fairness as a choice between younger and older Australians.
“Older Australians support fairness for younger generations. We need equity for people of all ages, not a generational tug-of-war where everyone loses,” Ms Sparrow said.
Ms Sparrow said findings from COTA’ Australia’s State of the Older Nation report make clear that broad assumptions about older Australians being uniformly wealthy are deeply misleading.
“The stereotype of the ‘rich boomer’ is lazy, divisive and wrong,” Ms Sparrow said.
“One in four older Australians lives in poverty. For every older Australian living comfortably, there is another counting every dollar, skipping meals or delaying healthcare.
“The State of the Older Nation data exposes a sharp intragenerational divide – particularly in financial security, housing, health and connection – that directly challenges the popular narrative of older Australians as uniformly wealthy, secure and comfortable.
Ms Sparrow said COTA Australia has serious concerns about the impact of recently announced changes to the private health insurance rebate, warning the changes could place additional pressure on older Australians already managing rising household costs.
“We’ve already heard from older Australians worried about what these changes could mean for their budgets and their access to healthcare,” Ms Sparrow said.
“For some people, the added cost may be manageable, but for many others living on fixed or modest incomes, every extra dollar matters.”
Ms Sparrow said there was also a broader system-wide risk if affordability pressures force older Australians to drop private cover.
“If higher costs push people out of private health insurance and back into an already stretched public health system, nobody wins.”
COTA Australia also warned against retrospective changes to long-standing retirement settings, including any changes to capital gains tax arrangements that are not appropriately grandfathered.
“Many older Australians planned their retirement around the rules governments set,” Ms Sparrow said.
“You cannot invite people to play by the rules, then rewrite them in hindsight.
Ms Sparrow said COTA Australia supports serious action to address inequality, but warned that framing policy reform as a generational contest risks missing the real challenge.
“We can tackle inequality without turning generations against each other. Good policy should unite Australians across generations, not pit young against old.
“The Prime Minister and Treasurer have both said this budget won’t be about targeting older people – we’re looking forward to seeing those words translated into action in the budget.
COTA Australia’s pre-Budget submission calls for:
• Developing a 10-year whole-of-government action plan for an ageing Australia, with clear accountability and investment in tackling ageism.
• Closing the retirement age gender gap, including a national review of the systemic barriers that force many women to retire earlier with less financial security.
• Finalising aged care reforms, including a clear transition to a single home and community care program and stronger oversight of pricing in the Support at Home system.
• Ensuring banking and credit rules work fairly for retirees, including examining whether a retiree-specific credit assessment standard is needed.
• Protecting access to cash and non-digital banking, while building digital confidence as payment systems continue to change.
• Introducing a Seniors Dental Benefit Scheme to ensure older Australians can access preventive oral health care.
Media contact: Alana Mew, 0419 929 722 or Tamara Kotoyan, 0430 291 890