One of the first steps in eradicating the Age Pension

[Mr. Fabulous]

The Federal Government is now actively taking steps to eradicate the Age Pension. Here is one of the first steps towards doing so. If you are receiving or know anyone that is receiving (or planning to receive) Age Pension, then have a read.

http://blog.bendzulla.com/2014/10/03/changes-to-centrelink-treatment-of-account-based-pensions/

 

[neK]

Interesting.
When was this actually announced?

 

[willair]

The Federal Government is now actively taking steps to eradicate the Age Pension. Here is one of the first steps towards doing so. If you are receiving or know anyone that is receiving (or planning to receive) Age Pension, then have a read.

http://blog.bendzulla.com/2014/10/03/changes-to-centrelink-treatment-of-account-based-pensions/

Thanks for the link I know a few people on the aged-pension,but after reading the link,all some may have to do as quoted..

As the social security changes relate to pensions commencing on or after 1 January 2015, rebooting a pension before that date will lock in the relevant deduction amount for any future age pension assessment.

 

[Terry_w]

Its not about abolishing the pension but only paying the pension to those that have no other income or resources.

An interest in a SMSF is a financial resource afterall so why shouldn't it be taken into account?

 

[Mr. Fabulous]

Hi Terry, it's not about going from one extreme to the other - merely the first step in pushing towards the removal of the Age Pension. For instance, no Government is going to go from paying the Age Pension to removing it entirely in one step. That would be political suicide.

However, by moving the goal posts slightly, bit by bit, getting people used to each new movement over time, they will eventually remove it entirely.

 

[cu@thetop]

I wrote yesterday about a conversation I had yesterday with a lady as regards 457 visa and refo scams (in the now locked racism in Australia thread).
If her views are correct about Australia importing non tax paying citizens/ bludgers / welfare cheats/ fraudsters en masse then I'm sad to report that the Age pension is a dead man walking- as will soon be our public health system.

We should be grateful as this should be sufficient inspiration to be self funded by retirement age - even though I expect it is only a matter of time before that nest egg will be raided.

 

[bob246810]

As a millennial I have no hope a pension will be paid when my generation retires.

If you haven't got enough for retirement, better start learning freeganism!

 

[westminster]

Interesting changes but I'm not really surprised or upset.

Super was introduced by the govt to basically phase out the old age pension, this is nothing new that changes will progressively be coming in over the next 20 years as the population who needs it changes to the population who doesn't.

 

[D.T.]

Step 2 - Eradicate Centerlink

 

[Television]

Step 2 - Eradicate Centerlink

What a horrible idea.

 

[D.T.]

What a horrible idea.

Don't vote for me when i run for inaugural president then. I promise to save the country billions of dollars.

 

[handyandy]

I thought (assumed) that anybody getting preferential treatment for taking a pension out of super would already have had any pension entitlements restricted.

So is it the case that currently you can take your super pension and still get a centrelink pension with no reduction in the centrelink pension except for any asset test rules?

Cheers

 

[property_girl]

Whether it's right or wrong, I think it is only a matter of time before people are expected to rely entirely on their superannuation to fund their retirement. Or else why would the government have introduced compulsory superannuation in the first place? It was the thin end of the wedge.

 

[bob246810]

Don't vote for me when i run for inaugural president then. I promise to save the country billions of dollars.

Yeah, but you'd need to increase the police and army budget by tenfold to deal with the rampaging mobs and skyrocketing crime levels.

 

[jim1964]

I promise to save the country billions of dollars.

Centrepay is the best thing since sliced bread!!!

 

[Hoffy]

The Federal Government is now actively taking steps to eradicate the Age Pension. Here is one of the first steps towards doing so. If you are receiving or know anyone that is receiving (or planning to receive) Age Pension, then have a read.

http://blog.bendzulla.com/2014/10/03/changes-to-centrelink-treatment-of-account-based-pensions/

Sensible measure. Much more needs to be done of course. The means testing for age pension is absurdly generous. When a couple who own their home and have more than $1.1mil of other assets can still get some age pension, we are wasting money.

 

[HeadsOnBeds]

Bit off topic but how are reverse mortgages or other bank loaned funds seen by centrelink. What's to stop people buying $2mill property and borrowing it back? The next big move would have to be to include the ppor in the calcs, I wonder how that would work?

 

[D.T.]

Bit off topic but how are reverse mortgages or other bank loaned funds seen by centrelink. What's to stop people buying $2mill property and borrowing it back? The next big move would have to be to include the ppor in the calcs, I wonder how that would work?

I agree, PPOR should be included in asset base.
Could be X amount of cents per dollar of PPOR value, only if over and above median for the city.

 

[datto]

Bit off topic but how are reverse mortgages or other bank loaned funds seen by centrelink. What's to stop people buying $2mill property and borrowing it back? The next big move would have to be to include the ppor in the calcs, I wonder how that would work?

Revesrse loans are low LVR.

Any money taken out of the property would be assesed under Centrlink's income and asset test for age pension.

 

[Scott No Mates]

I agree, PPOR should be included in asset base

Totally disagree there DT. Why should someone be forced out of their home because they are asset rich but cash poor? If you worked your butt off to buy a $10M waterfront palazzo, but are stopped from getting a pension because you have no other assets?

Are they any less worthy of getting the pension than Datto's long lost cousin who smoked 4 packs per day, spent his (cash) wages at the TAB to legitimise the income, drank his dole money etc and was on an carer's pension once he hit 21?