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  1. #11
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    I believe the house they live in should be exempt but any additional properties should be included.

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  3. #12
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    I am pretty sure the assets test does not include the home you live in.
    I am for the cuts. The assets which are counted are home contents, cars and investment assets and future generations need to be made aware that they need to be building assets for themselves now rather than relying on the Age Pension to be there in retirement.
    The assets tests right now are very generous as a couple can pretty much have $1.1m in assets (not including home) and still get a part age pension.
    New test from 1 Jan 2017 will reduce the cut off to $816k for a couple who own a home.
    Last edited by Night Owl; 17-10-2016 at 15:45.

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  5. #13
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    Default Cuts to aged pension re assets - agree/disagree?

    Quote Originally Posted by Elijahs Mum View Post
    It's easy to set up a family trust - maybe get your parents to look into it so they don't lose anything?
    With a war services pension it has to setup before you go on it not after. It's run differently to regular pension but they still get affected with cuts. My folks definitely don't live a lavish life style
    Last edited by babybeeno1; 17-10-2016 at 15:50.

  6. #14
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    Quote Originally Posted by Elijahs Mum View Post
    I can't read the article either but surely it won't include the home they live in? That's usually always exempt ?
    Primary place of residence is exempt.

    The asset test only includes investment properties, cash and other assets.

  7. #15
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    Default Cuts to aged pension re assets - agree/disagree?

    Edit: just had a look at Centrelink website. The changes are as follows, for those who are interested:

    For a single person that owns their own home:
    Full pension eligibility will be cut off if your assessable assets are above $250k - it's currently $209k

    For a single person that owns their own home:
    Part pension eligibility will be cut off if your assessable assets are above $542.5k - it's currently $793.7k.

    Basically, the people who are currently eligible for part-pension are the real losers here, but let's look at it this way: you have an asset that is worth minimum $543k . That would generate rental income of around $21k p/a and also have capital growth. Should you be entitled to a part-pension?

    I'm going to go against the grain here and say that if you have accumulated assets throughout your life for your retirement, then isn't the point of that asset accumulation to actually use it to pay for your lifestyle in retirement?

    I really don't get the uproar over this.. The age pension is a pittance, if you need to rely on it then it's unlikely you have any assets to sell.

    And I don't agree that people should sell their family home - definitely not. But the family home is exempt, so not an issue.
    Last edited by witherwings; 17-10-2016 at 22:42.

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  9. #16
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    Default Cuts to aged pension re assets - agree/disagree?

    I feel like there are too many people in society depending on their parents leaving them an inheritance and that is why people feel scandalised by the idea of retirees selling their assets or using their savings to pay for their living costs.

    Sorry, but as much as I love my kids, I'm not going to depend on a pension just so they can inherit my assets when I die. I would love to leave them something of course, but not at the expense of enjoying the final years of my life by living comfortably, travelling and having enough money to not worry about healthcare.

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  11. #17
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    I think it's rubbish. My mum will affected by the cuts. She worked hard for over 50 years to set herself up in retirement. She owns her own home and has one investment property which generates a small income after expenses. She also has lovely furniture and art work accumulated over a lifetime. She's only entitled to a very small pension (less than $75 per week) BUT the important part for her is it means she has a healthcare card.

    As a person with chronic illness her circumstances will change rapidly if she loses that card. Full price her medications are over $800 per week. She can not afford them. She will quickly deplete all her assets just to stay alive then end up on a full pension and probably in some for of public care - how is that a cost saving!

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  13. #18
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    @witherwings I agree it is a pittance and mum did set her self up - however she will lose the healthcare card if she loses her entitlement to the pension and that will dramatically impact her life.

  14. #19
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    @binnielici - could she still get the health care card as a low income earner? It's not asset tested.

  15. #20
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    Quote Originally Posted by witherwings View Post
    @binnielici - could she still get the health care card as a low income earner? It's not asset tested.
    Mum was told she was only entitled to the card because she was eligible for the pension. I'll tell her to check again Centrelink can be painful!


 

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