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James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
I guess there will be a push to include the family home in some form. But it would be a brave government to try it. Witness the franking credits fiasco. A sensible policy hounded out of existence. Similar with negative gearing and CGT discount amendments.
It will be a very “game” Govts that includes the price of the family home into the assets test for aged pension purposes. That said , I think it has to eventually happen . The Govt cannot continue to fund people with the aged pension when they sit on an asset ( family home) that is above 3or 4 Million $’s . I think a realistic starting point to affect the pension is when the house price is $2.5 Million or above .
I put forward for your respectful contention that to maintain fairness and equity in our society, we have to avoid a large discrepancy in wealth.
In my opinion, only a person who owns a PPR up to the value (presently) of $2.5 million should be eligible for aged pension. We must encourage retirees to downsize and move into suitable alternative accommodation and so ease the housing crisis.
It is probably time for consideration of a part inclusion of the Family home to be included in the Assets Test for all welfare recipients. The desire for generational transfer of wealth on the death of the owners is now beyond the pale. At least the Gov’t should consider the application of the Capital Gains Tax when inheritances are distributed. This would at least reduce the burden on the community as a a whole , if it is accepted that Gov’t use monies collected for the benefit of the whole of Society
I would support a first step of including homes worth very high amounts…say 5 million dollars being included in a calculation.
Hello…my opinion…I think that for family houses above a certain value…say $3m….any pension paid should be a “charge “(ie a future liability) against the property …such that on death or sale the govt is repaid the accumulated amount of the “charge”.
The comments on the age pension rated against the PPR as an asset when the ABS details millions in 2003 quarter then in 2010 it rated in billions now it is rating in trillions then it is a hypothetical fairness the age pension to doubled and tripled since the tax, if the PPR benchmark attracts CGT ? when world bank/IMF covid relief loans negated with Pharmaceutical lobbyists (“the lender”)are hedging into trillion category with boosta for life Dr Fauci quoted.
Pfizer alone last Quarter 29 billion. house prices are RELATIVE if the downgrade for pensioners sellout and cant buy back in down grade to what level the equity becomes cash and the pension reduces dramatically maybe even to zero ,,, it is adead duck for any politician to contemplate protesters 140k on weekends in one place hyde park/martin place politically savvy futurists who will become politicians one day and not forget and remember.