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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 .

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Treasurer has his eye on older Australians

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Gertraud
Gertraud from ACT commented:

Interesting comments. My own situation is that I am a wholly self funded retiree with a superannuation income of roughly the same amount as the single pension. Not so long ago, I attended a seminar at which a 30-something woman expressed the view that all older people should be "forced" to downsize, to which I responded that I would like to see someone try to force me. The issue is that Gen Y and some Gen X, representing our children and grandchildren, are expressing this view and their voices are getting louder each day. So, this won't go away and we can expect that retirees desiring a pension will find that their home is part of the pension assessment. According to the Y Gen and to some extent the X Gen, we, the boomers, are the evil generation that is to blame for everything bad in this world. Apparently, we all had access to free university education and life was presented to us on a silver platter. Funny, that doesn't exactly match my memories of raising four kids primarily as a single parent, foregoing luxuries and holidays to provide a home of our own for my children, but ok, I'm one of those evil boomers. 

Gabrielle
Gabrielle from NSW replied to Gertraud:

The problem with Gen y and Gen x is that they want everything now !! 

Mike
Mike from NSW commented:

I couldn't agree more. My parents brought me up to pay towards health, dental, hospital and Ambulance. If we get a TV aerial repaired we pay for it yet seven dollars towards a visit to the Doctor isn't. Give me a break! 

Joseph
Joseph from NSW commented:

Joseph from NSW I have always said - get elected to Parliament, sit on the back bench and say a few "ayes" and "nays" and then retire with all the perks. 

joan
joan from NSW commented:

tax should be paid by big business that send their money overseas treasurer should be tougher on those that can and should pay fair share of tax not pensioners 

Gregory
Gregory from NSW commented:

Well said James! I retired 3 years ago at 64 yrs of age and calculated my finances on my income streams and a part pension from the government. Thanks to the govt my wife and I will be approx $8,000 a year worse off after 1st January 2017 following the review of the income/assets on part pensions. I can understand that everyone has to pull their weight but so far the only ones doing so are the pensioners who after working as in my case all their lives and being frugal are penalised. Now they want us to downsize our homes to save more precious dollars so that they can waste our money by buying the votes of welfare rorters and asylum seekers. In my case my home is a humble semi that I bought some 35 years ago. I do not want to downsize because I would have to leave an area where I have many friends and the cost would be prohibitive(stamp duty etc). The govt should be looking at welfare and tax rorts across the board incuding their own. They may be in for a rude shck at the next election! 

ken
ken from NSW replied to Gregory:

Am in the same situation if they wish to change it the people already on a sml part pension should be left alone 

Vicki
Vicki from NSW commented:

Politicians are thugs with their eyes on elders savings. They should make themselves an example and give up all their perks before stealing hard earned wages of retirees 

Dennis
Dennis from NSW commented:

Ray from NSW makes a point regarding horrendous NSW Stamp Duty. At age 84 I would like to down-size from our suburban home to a unit/villa in the same locality. However after sales commission on selling, my wife and I are faced with sales tax on our new purchase. This makes the decision very difficult. Dennis 

Ray
Ray from NSW commented:

Housing availability is realized if older Australians downsize from a house on a substantial block and move to a unit or other higher density dwelling. Stamp duty in NSW is horrendous. It seems like wasted money and is a discouragement for people to move. Ray 

Kerrie
Kerrie from NSW replied to Ray:

Stamp duty for downsizing should be abolished. In fact stamp duty on real estate should have been abolished with the introduction of the GST. I guess it's even worse with new cars where one pays GST and then stamp duty on that GST as well. 

ivan
ivan from NSW commented:

This is appalling we pay taxes all our lives and strive for a reasonable retirement and now we have to sell why: because the government wants to spend money on refugees and asylum seekers - We do not have to bail out the government for their bad decisions and mismanagement . How about increasing the cost of gas we sell to China how about using the gas in Oz for car users. The Treasurer and all politicians its very well to seat in ivory towers and dictate what should be done without affecting the politician standard of living. Why does the Treasurer and politicians past and present lead by example and downsize , forgo all the "entitlements " and future pensions; I am sure there will be billions to be saved. Always go for the venerable is this Morison's moto - This liberal Gov has been a big disappointment I wish I never went to the rallies all the broken promises. Boasting about stopping the boats instead they embraced 12500 refugees at the retirees costs . This what happens when one believes the politician. I would like to show how expenditure can be cut starting from the top ie Canberra. Ivan 

mick
mick from NSW commented:

One year they say we must spend then the next we must save, I am of the firm opinion that the Government haven't got a clue what they are doing.They talk about debt but continue to borrow to give money away overseas. Fix our own backyard before we solve the world's problems. Continue to bring in migrants when there is no housing for our own people. Country is run by dopes. 

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