http://www.dailytelegraph.com.au/news/n ... 7335300853
This have been reported on the news, by several people. How will this affect people on the forum? If it comes in.
I guess some here have sold their house, bought a big van and have fair bit in the bank or invested somewhere, to live on the interest.
We will be ok. Got a house and not that much in the bank, so no change for us, i hope.
Hans
Pensioner asset test
- A'van
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Pensioner asset test
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loub
- Posts: 814
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Re: Pensioner asset test
It looks a better a balance to me than before. I think we will have to wait and see how it will affect those that will be cut out as their is always people who don't fit the way it looks on paper . 
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Mally
- Posts: 1526
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- Location: Modbury Heights Sth Aust
Re: Pensioner asset test
Don't have a problem with the changes can't keep forking out to those who have significant money. Also time to those who have huge salaries to loose child support and day care etc.
Glannie I think I'm bending over to your side bloody hell!!!!!
Glannie I think I'm bending over to your side bloody hell!!!!!
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ALAN1963
- Posts: 281
- Joined: Sun Sep 09, 2007 10:53 am
- Location: Australind WA
Re: Pensioner asset test
Hi,
There is quite a long thread on this topic on the caravanners forum, some interesting points of view depending where you are in life.
Myself and my wife are not retired but in our early 50's and trying to make sense of it all.
The way we see it is this.....you need to be a multi millionaire to retire independently or have just under the limits so you can have part pension.
As far as I can see the new rules make it a disincentive to work longer(Which Abbott and co want us to do) as you will be penalised for it at retirement. We may as well retire earlier and draw on our super so that we qualify for the pension or part thereof.
Buying a Mcmansion to hide money seems to be the only option left.
Also bear in mind that the pension is worth over one million invested re returns in our current climate of low interest rates.
Spend now I say and to heck with tomorrow as those who are prudent enough to think about it will be penalised.
No doubt there are greater minds than mine at work here.....
Cheers AL
There is quite a long thread on this topic on the caravanners forum, some interesting points of view depending where you are in life.
Myself and my wife are not retired but in our early 50's and trying to make sense of it all.
The way we see it is this.....you need to be a multi millionaire to retire independently or have just under the limits so you can have part pension.
As far as I can see the new rules make it a disincentive to work longer(Which Abbott and co want us to do) as you will be penalised for it at retirement. We may as well retire earlier and draw on our super so that we qualify for the pension or part thereof.
Buying a Mcmansion to hide money seems to be the only option left.
Also bear in mind that the pension is worth over one million invested re returns in our current climate of low interest rates.
Spend now I say and to heck with tomorrow as those who are prudent enough to think about it will be penalised.
No doubt there are greater minds than mine at work here.....
Cheers AL
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darkside
- Posts: 130
- Joined: Tue Apr 14, 2009 10:52 pm
- Location: sth west western australia
Re: Pensioner asset test
we can only hope that the proposed changes in their current form don't make it past the senate.
IF we do end up with these changes the fairest way to implement them is that for all those those currently in the system the status quo remains , half of them will probably cark in a few years anyway.
the new changes can then be applied to new pensioners entering the system after jan 2017 at least they will be able to arrange their financial affairs to avoid being caught out.
what people haven't twigged yet is that as wages rise and super contributions increase there will be a lot more people in the they grey area in a few years time.
there seems to be a deafening silence from the opposition and pensioner groups on this matter at the moment.
I am a bit over the $823000 at the moment and there is no way that I can generate a return anywhere near the amount of the couples age pension with out getting a few hundred dollars a fortnight part pension
mick
IF we do end up with these changes the fairest way to implement them is that for all those those currently in the system the status quo remains , half of them will probably cark in a few years anyway.
the new changes can then be applied to new pensioners entering the system after jan 2017 at least they will be able to arrange their financial affairs to avoid being caught out.
what people haven't twigged yet is that as wages rise and super contributions increase there will be a lot more people in the they grey area in a few years time.
there seems to be a deafening silence from the opposition and pensioner groups on this matter at the moment.
I am a bit over the $823000 at the moment and there is no way that I can generate a return anywhere near the amount of the couples age pension with out getting a few hundred dollars a fortnight part pension
mick
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Mally
- Posts: 1526
- Joined: Wed Jan 14, 2009 2:43 pm
- Location: Modbury Heights Sth Aust
Re: Pensioner asset test
I think we worry about how to handle our money at retirement too much. Yes we need to be vigilant but not let it become an obsession. I don't have a huge amount but with budgeting and common sense we live very well. I have a financial adviser who I trust and let him do the best he can. I don't think you need anywhere as much as people say to live pretty well. Best bit of advice I ever had was at retirement make sure you have a good car and caravan and your house is freehold. I may loose a very small part of my pension but who cares I'm happy and still traveling 
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darkside
- Posts: 130
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- Location: sth west western australia
Re: Pensioner asset test
A lot of us entered into retirement in the last few years with a certain set of centre link rules regarding income assets and part pensions in place now the bloody liberals want to move the the goal posts and its not that easy to unpick the way assets are held in some cases and also if you do you end up with a possible capitol gains liability.
every one else I know has a house that is worth a few bob and not much in the way of assets, unfortunately I am the other way round
IN my case I have been living in a run down old house that I bought for under $1500 40 years ago and owned it outright since then,( its really worth bugger all and is not worth spending lots of money on doing it up, the best thing to do is demolish it and put a transportable in its place)
over the years I have managed by pure dumb luck to save a few bob but I have always thought it inevitable that we would have to eventually buy a place in the nearby larger town because as we got older we would probably need access to sevices that are not available out here , it would be especially bad if we got to the stage where we couldn't drive anymore for one reason or another.
So it looks like we will now have to make the move sooner now than later and burn up a few bob so we stay in the system.
Its a shame I'm not a bit younger I could blow most of it on wine hookers and song
every one else I know has a house that is worth a few bob and not much in the way of assets, unfortunately I am the other way round
IN my case I have been living in a run down old house that I bought for under $1500 40 years ago and owned it outright since then,( its really worth bugger all and is not worth spending lots of money on doing it up, the best thing to do is demolish it and put a transportable in its place)
over the years I have managed by pure dumb luck to save a few bob but I have always thought it inevitable that we would have to eventually buy a place in the nearby larger town because as we got older we would probably need access to sevices that are not available out here , it would be especially bad if we got to the stage where we couldn't drive anymore for one reason or another.
So it looks like we will now have to make the move sooner now than later and burn up a few bob so we stay in the system.
Its a shame I'm not a bit younger I could blow most of it on wine hookers and song
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tar trekka
- Posts: 1053
- Joined: Sun May 13, 2012 2:23 pm
Re: Pensioner asset test
Hi there,
I'm over on the current maximum, so I'm not affected, at present.
The thing that gets me over the reduction of the "Assets Test", is that the limit has been reduced by around 28%, but the "Income Test" has been left untouched.
Those who are fortunate enough to come under the Income Test, retired Public Servants (whose lifetime Employer sponsored Pensions are funded by the Tax Payer) & others on Employer Sponsored Lifetime Pensions, can have a fortnightly income of $2,877-60 (most likely Tax Free), before losing Aged Pension & Benefits.
Had the Income Test been reduced by 28% to $2,124-00, the system for Retirees would be much fairer.
The person who comes under the Income Test, has always been better off financially.
However in times of very low interest rates, the gap in favour of the Income Test Retiree is much wider.
Retirees who are affected by the change, should discuss the Discrimination against them with their Local Member, I certainly will.
Tar Trekka.
Any day above the ground is a great day.
I'm over on the current maximum, so I'm not affected, at present.
The thing that gets me over the reduction of the "Assets Test", is that the limit has been reduced by around 28%, but the "Income Test" has been left untouched.
Those who are fortunate enough to come under the Income Test, retired Public Servants (whose lifetime Employer sponsored Pensions are funded by the Tax Payer) & others on Employer Sponsored Lifetime Pensions, can have a fortnightly income of $2,877-60 (most likely Tax Free), before losing Aged Pension & Benefits.
Had the Income Test been reduced by 28% to $2,124-00, the system for Retirees would be much fairer.
The person who comes under the Income Test, has always been better off financially.
However in times of very low interest rates, the gap in favour of the Income Test Retiree is much wider.
Retirees who are affected by the change, should discuss the Discrimination against them with their Local Member, I certainly will.
Tar Trekka.
Any day above the ground is a great day.
- A'van
- Posts: 2555
- Joined: Sat Apr 11, 2009 9:04 pm
- Location: Albion Park. NSW.
Re: Pensioner asset test
E&H
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Toby D
- Posts: 15
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- Location: Western Victoria
Re: Pensioner asset test
I qualify for the Aged Pension this year and have been crunching scenarios on http://www.humanservices.gov.au/custome ... estimators for the last few days. Don't have a Super scheme just investments for income, not for capital growth. Given that the deeming rate for investments over $48,600 (single) is 3.25% then whilst on-line bank accounts and term deposits are < 3.25%, it would appear that my money in either of these two is better under the bed or just spend it (SKI trip - Spend Kids Inheritance). Don't have an asset issue. Still got a few more scenarios to look at including tax.
Been managing my mother's finances for about 10 years now after taking them off a Consultant when dad died. Consultants lose interest in clients when the clients capital starts to be eroded and mum's Consultant had lost interest (at least that was the impression we had). They also play ignorance when it comes to LITO (low income tax offset) and SATO (senior australian tax offset). Learnt a lot this way.
Been managing my mother's finances for about 10 years now after taking them off a Consultant when dad died. Consultants lose interest in clients when the clients capital starts to be eroded and mum's Consultant had lost interest (at least that was the impression we had). They also play ignorance when it comes to LITO (low income tax offset) and SATO (senior australian tax offset). Learnt a lot this way.
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