News

NewsTreasurer has his eye on older Australians
Treasurer has his eye on older Australians

Treasurer has his eye on older Australians

Last updated by Chris Zinn on
Older Australians are wary of the new Federal Treasurer’s talk of tax reform, research by the 130,000-member FiftyUp Club reveals.

Treasurer, Scott Morrison MP, has set himself the task of convincing ordinary Australians that we need tax reform. 

The Treasurer is particularly focused on older Australians and unlocking their capital to increase retirement incomes.

Take part in the poll and tell us if you think retirees have the option to sell the family home and downsize without affecting their pension?

A recent survey of almost 18,000 older Australians provides insight into the very demographic the Treasurer is appealing to. The study of the over 50s has found;

  • almost half (45%) think tax concessions for people with large super balances should be wound back, however 34% disagree with this and another 1 in 5 don’t know;
  • the low interest environment has been a disaster for half of older Australians getting lower interest on their savings;
  • they are not convinced that a change to the GST is necessary (46% do not support any change, while 46% would support an increase in rate/and or broadening of the base).

The FiftyUp Club nation-wide study into cost of living pressures highlights why the budget needs to be carefully balanced with a particular focus on the ageing population.

One of the billion-dollar questions for the government is how Australia is going to support the growing numbers of retirees. The survey found;

  • 2 out of 3 Australians have or will retire on $300,000 or less because superannuation was not compulsory in their day.
  • 75% of older Australians, are, or will be, dependant on the full or part-time pension

“The challenge for government is about getting the balance right between supporting the older Australians and ensuring retirement incomes policies are sustainable,” FiftyUp Club spokesperson Christopher Zinn said.

It’s important politicians start to understand the pressure older Australians face. The study found 85% said these issues were either important or very important to their vote at the next election, and that could be any time soon.

We'd love to read your comments about how you feel about proposed changes.

Originally posted on .

Join the conversation

FiftyUp Club
Treasurer has his eye on older Australians

Share your views with other members. 

Want to leave a comment? or .
Read our moderation policy here.
Dianne
Dianne from NSW commented:

Interest on term deposits is hardly anything, the money in superannuation has gone down. For self funded retirees, it is almost impossible to live. We do not get a part pension and are trying to live off our savings which is almost impossible. We are drawing down our capital. 

James
James from NSW commented:

How can anybody plan for retirement when they move the goal posts? Changes should not apply to persons who have already retired and based their retirement planning on the existing rules. Politicians have no idea of what it's like for the average worker when he retires, They live in protected luxury which many of them don't deserve. 

Mike
Mike from NSW commented:

Like all self funded retirees it is becoming more difficult to stay on an even keel financially due to falling interest rates and the escalating cost of living. Welfare recipients do it a lot easier these days, but the recent outcry over the suggestion of a $7 doctor's co-payment was a disgrace. If we can't pay $7 towards visiting our doctor something is terribly wrong with us as a society. Self funded retirees want to contribute to the economy and the Labor Party's deficit disaster, but cut out double dipping and all the rorts and maybe we might make it out of the red. Then again Governments and Opposition pollies share a common belief not to take anything away from the welfare class just in case they over react and vote you out at the next election. 

Kerrie
Kerrie from NSW replied to Mike:

Everyone should be required to pay something for each doctor's visit as the current system leads to massive over servicing of our medical resources. 

Carol
Carol from NSW replied to Kerrie:

Kerrie are you a Politicians wife? 

Kerrie
Kerrie from NSW replied to Carol:

Certainly not. Why would anyone be a politician when they can earn many times more working in public enterprise? 

Lyn
Lyn from NSW replied to Kerrie:

We already all pay something for Dr's visits and hospitals----it's called the Medicare Levy and if you read your tax return/assessment as you have stated you are a taxpayer then you would know there is a Medicare Levy that we all pay 

Alan
Alan from QLD commented:

Before the treasurer attacks the older generation he needs to make sure that all rr all organisations and businesses (including those that don't currently pay any tax) pay their share of tax. That is where the big money is not with the oldies who have contributed to the country over many years. Also that politicians can show some leadership by cutting back on their generous benefits and I hope they will have to pay any tax that is leveled at the retirees and not have some sort of loophole to get out of it. After all they are on a pension scheme that the rest of us could only dream of. 

Annamarie
Annamarie from WA commented:

I think it is high time that politicians left older Australians alone. Recent policy changes alone have made it more difficult for us to live a decent life. Perhaps politicians would like to contribute half of the annual pension to the economy along with all the other perks they so conveniently manipulate in their favour. Better still they should reform politicians pensions to equal ordinary Australians. But then again pigs might fly!!! 

John
John from NSW commented:

I am a self funded retiree and am struggling to keep up with the financial pressures caused by the ever increasing cost of living. What is it that the government don't understand about our plight? Now there is even talk of reducing interest rates even further in the near future. Another gripe I have is the nerve of state governments to charge stamp duty on GST as I recently experienced. What about the outcry of 'double dipping' when family benefits were reviewed recently. Surely this is no different than the state government charging a tax on a tax, and no matter how you term it 'duty' is a tax 

Brian
Brian from NSW commented:

Total assets have to looked at in retirement otherwise retirees will simple move to a more valuable property as they do now and attemp to draw a greater pension. 

Kerrie
Kerrie from NSW replied to Brian:

Agree the home should be included in the assets test as this is the most inequitable part of the whole pension scheme. 

Lyn
Lyn from NSW replied to Kerrie:

You just don't get it do you? Homes and any other possessions are paid for out of AFTER-TAX income. Those with homes have paid for them out of After-Tax INCOME. Whether it is spent on a larger home or a larger fridge or 20 pairs of shoes, our possessions have no bearing on the payment of a pension because that is what we thought we were paying some of our 45yrs worth of taxes for according to the Govt rules. 

Kerrie
Kerrie from NSW replied to Lyn:

If everyone paid a bit more than medicare to see a doctor then it would stop people just going to their doctor for someone to talk to every week. My friend was a GP and he gave it away as he had better things to do then just talk to lonely people. 

Kerrie
Kerrie from NSW replied to Lyn:

Why is your car then not exempt from the assets test you paid for that out of after tax dollars too? 

Lyn
Lyn from NSW replied to Kerrie:

Wish it was 

Kerrie
Kerrie from NSW replied to Lyn:

That is why the house must be included in the assets test especially with houses appreciating whereas most cars depreciate. 

John
John from NSW commented:

If there is a real need to drop the pension threshold eligibility then so be it but taking away the concession card and replacing it with the health card is sheer stupidity. The concession card provides some relief from bills so therefore enables the self funded retiree to maintain there independence longer before needing more government assistance. Unfortunately greed and stupidity seems to be the norm for politicians. 

Elana
Elana from SA commented:

No way...why should over 50s be made to sell their residence...clearly we are easy target...they forget we had the grand privilege of paying a mortgage and to survive mortgage rates were of 19% a number of years ago. Also superannuation is not enough for females with this age bracket as we have not been in it all our working lives lje my sons will be... 

Lyn
Lyn from NSW replied to Elana:

Well said Elana. Lone women are forgotten on this subject & nor did we have the privilege of large family benefits and subsidised child care for many years. Nor did we have the benefit of Super in casual jobs etc to keep the home fires burning. 

Someone
Someone from NSW replied to Elana:

No one needs to sell their home but you can certainly reverse mortgage it and take advantage of the equity you have in it. You can still stay in your own home, which is very important to people, especially as they get older, but can access the money you have accumulated. Take a well earned cruise (or whatever takes your fancy) but enjoy what you have worked for and don't just assume you have to exist on a pension just because you are asset rich but cash poor. 

Elana
Elana from SA commented:

No way...why should over 50s be made to sell their residence...clearly we are easy target...they forget we had the grand privilege of paying a mortgage and to survive mortgage rates were of 19% a number of years ago. Also superannuation is not enough for females with this age bracket as we have not been in it all our working lives lje my sons will be... 

Comment Guidelines