Our Budget Survey hands down the People's Verdict on Super, Pensions & Negative Gearing

The people have spoken: loudly, quickly, wisely and above all honestly in our annual Budget survey. You’ve even thrown in a few surprises.

The responses were coming in at the rate of 100 an hour at some stages. At the time of writing, more than 7,500 of you have given the pollies a piece of your mind.

Given the wide-ranging nature of the questions, and the fact some responses are still coming in, we’ve decided to keep the survey going another week and will report back on more results then.

Take the survey here: https://www.surveymonkey.com/r/TCVRHS3

Today we’ll look at what you’re telling about yourselves and your voting intentions and views on suggested changes to superannuation, pensions and negative gearing.

Who are you?

Overwhelmingly, 47% describe yourselves as coalition voters with just 22% opting for Labor. This reflects a broader trend. In a poll just before the 2013 federal election in the 50-64 year old cohort 47% said they’d vote coalition and 35% ALP. (link http://theconversation.com/age-breakdowns-show-huge-differences-17361 )

You are roughly divided into thirds between those who say they are on the full pension, the part pension and are self-funded retirees.

Interestingly, while more than a million Australians negatively gear a property, they represented only 13% of respondents with 72% having no such investment. A further 14% enjoyed other investment vehicles.

Superannuation

There has been recent debate about the tax breaks enjoyed by particularly wealthier Australians and if and how they might be scaled back. More than 66% say it’s time to reduce the concessions, 23% want no change and 10% don’t know.

Another argument has concerned a particular benefit to draw funds out of super tax-free for those aged more than 60 while those under the age had to pay 15%. But there is strong, and perhaps self-interested, support from 73% of us to keep the concession that allows those aged over 60 to draw down super tax-free, while those under 60 pay 15%

Pensions

With so many pensioners and part-pensioners – and those who expect to be – in the FiftyUp Club there’s no surprise members are pretty savvy about the system. Under one proposal single pensioners would be allowed to have up to $100,000 in cash and investments on top of the family home. The current limit is $202,000. For couples the threshold would fall from $348,000 to $150,000.

When asked if you’d support this change, if it helps balance the Budget, 74% said ‘No these people are not necessarily well off’.  20% said ‘Yes these people are doing OK’  and 6% didn’t know.

It’s also been suggested pensions and superannuation are too long-term, complex and important to leave to the potentially short-term and popular political agenda. Former Victorian premier Jeff Kennett and others have advocated for a new independent statutory body to take the politics out of important decisions about retirement incomes.

There was overwhelming support for the plan, with 71% thinking it is a great idea. Just 8% thought ‘No it should be left to elected officials.’ 20% didn’t know.

Negative gearing

There was also strong and surprising support for a policy change which could be seen to disadvantage an older demographic. Asked if there should be changes to negative gearing, which allows investors to use any losses in relation to an investment property to reduce their income tax, the opinion was overwhelming:  67% supported some kind to reduction in the benefit, with 45% saying it should be scaled back to more moderate levels, 14% that it should be abandoned altogether and 8% that it should go but be retained for current landlords. Just 23% thought ‘No it should be left alone’.

Comments

There are now hundreds of fantastic comments at www.FiftyUpClub.com : some witty, some wild but nearly all worthwhile. Here is a brief selection:

Karen from NSW commented:

Pensions & Super: the term wealthy is relative and having $1million in super is not excessive especially when you are going to live from the returns of generating an income stream from it. The returns and capital value will fluctuate if not fall in real terms. Tax breaks to contribute and utilize the fund to provide an income stream should continue. Most self funded retirees would see little value in throwing away assets just to obtain a part pension or to get access to lower health care costs.

Nixon from QLD commented:

It is disgusting that the Government continually attacks the soft target of retirees for additional revenue. The majority of us have worked damned hard for 45 years or more and continually paid our taxes. It is time the Government stopped being so over generous with tax payers dollars.

MARCELLE from NSW commented:

Please be mindful people that those who own a 2 million home did not purchase this home at this price it grew in time and depending on current market it is today worth that much is it their fault that they bought well when they had the income and ability to do it? This may be the only asset they have today after retiring.

Paul from NSW commented:

Of course any changes to super and negative gearing has been ruled out in the past few days as its beneficiaries and proponents are too strong a lobby; Battlers and Wage Earners do not have the income or resources to avail themselves of this largess. The current home exemption for the pension asset test should be capped at $1Million with any excess valuation added to total assets test for the pension. GST on food, education, medical, etc. would be an obscenity, however, the current 10% rate should be adjusted to 15 or 20% provided the States eliminated the taxes / fees they were supposed to in the first instance, eg. stamp duty and all the 'slight of hand' they so love.

Next week:

More results – what you are saying about proposed changes to GST, discrimination against older workers getting jobs, and how RBA calls on lower interest rates affecting older Australians.