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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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William
William from NSW commented:

To encourage older retirees to increase their savings it would be an an advantage for the government to increase the allowable tax threshold before the retirees lose their medical concession card this threshold has not been adjusted for many years and only recently by the CPI and only once a year this action will assist retirees from having to adjust their income to maintain their concession card. 

Patricia (Trish)
Patricia (Trish) from ACT commented:

People on large incomes in retirement should have the pension cut back and I believe anyone over $50.000. 

Glenda
Glenda from NSW commented:

Why should we down size our home?? We both worked hard over the years to have our own home paid for many years before retirement and large enough home to be comfortable when family and grandchildren came to stay. We were not very high wage earners but very carefully managed our money. Why is it that ALL GOVERNEMNTS OF ALL PERSUASIONS ALWAYS HIT THE ELDERLY??? 

Kerrie
Kerrie from NSW replied to Glenda:

If you want to receive the pension then you should only be allowed to live in accommodation that is suitable for a couple or single person not a big family home. This is what I believe Scott Morrison is now looking at. 

Carol
Carol from NSW replied to Kerrie:

Excuse me but you sound like you are on a full pension and in public housing. You down size and go into a retirement village . If by chance you have to leave that village YOU have to pay CAPITAL GAIN on your unit. If you have to go into a Nursing Home YOU have to pay a BOND usually $200,000 upwards. While waiting for your unit to sell you are paying INTEREST on the money outstanding MONTHLY. All these new Politicians all have an ADVISOR so we are paying TWO WAGES PLUS PERKS. TIME FOR THEM TO START CUTTING BACK ON THEIR OWN LURKS AND PERKS. 

Kerrie
Kerrie from NSW replied to Carol:

No I'm a fully self funded retiree tax payer living on my own country estate. I just don't believe anyone on a pension should be allowed to live in a big family home at the expense of the taxpayer. If you want to stay in your expensive house then you still get the pension but what you get is then deducted form your estate. We have become far too welfare dependent in this country where far too many people get money for doing nothing. You also get same bed in a nursing home no matter what are your assets it's just that if you have assets you pay a bigger bond. Note the wealthy do not pay nursing home bonds but just pay a higher daily rate. If you don't get welfare you don't have to disclose your assets to anyone. Politicians go into the job like any other job knowing the benefits. I have no problem with this. 

Carol
Carol from NSW replied to Kerrie:

I don't know what State you live in but here in NSW YOU PAY A BOND. My elderly neighbour went blind overnight and having no family I had to look for a N/home to get her into. The BOND was $220,000 and that was one of the cheaper ones., and until her house was sold she was charged a very large interest rate on the amount outstanding. She was also MEANS TESTED. If she did not have a home to sell she would have just paid a daily rate from her pension. She did get a percentage back to her estate when she died but the fact is was not rich but very careful with her money. If she had done what a lot of others do, SPEND, GO ON HOLIDAYS, GAMBLE SMOKE, DRINK she would not have had to pay anything except the daily fee. LESSON - Don't save for a rainy day - the Govt. will change the rules so ENJOY the good life while you can 

Kerrie
Kerrie from NSW replied to Carol:

If you are not on the pension you do not have to pay a nursing home bond in NSW just a daily fee but most people pay a bond so they get a cheaper daily fee. Lesson get rich enough to not get the pension or poor enough to get full pension. 

Lyn
Lyn from NSW replied to Kerrie:

IS THIS Communist Stalin RUSSIA OR AUSTRALIA THAT WE LIVE IN???????????? Homes are purchased from after-tax paid income. You have the same choice that the rest of us have had on how to expend your after-tax income. How dare you suggest that retirees should not live in the family home that they spent years working and paying for and forgo the pleasure of their home or their garden or having grandchildren to stay because they have room for them to stay. I will say it again, homes are paid for from AFTER-TAX income and all retirees with homes have paid taxes before they got their wages to spend as they chose. 

Kerrie
Kerrie from NSW replied to Lyn:

No this is Australia and if it keeps going like it is we will be another Greece. 

Lyn
Lyn from NSW replied to Glenda:

Yes, why should our homes be considered re a part or full pension or we should sell and pay yet more stamp duty on next purchase? All the naysayers forget that our homes were bought from AFTER-TAX INCOME and when we all got our wages we all equally had a choice of how to spend it. Some chose to have a good time and some chose to buy better homes. It seems those of who chose to buy better and now more valuable 30 yrs later) homes are now being made to pay for those who chose to go to the pub or go on lavish holidays. Stay tuned as this nonsense has to stop & perhaps this site may stop it. 

Peter
Peter from NSW commented:

Te proposition by the Treasurer is nothing short of appalling. This is just another way the Government wants to save money at the expense of Senior Australians. Already they have abolished the former Seniors Supplement paid quarterly, for those on the Commonwealth Health Care Card, last June meaning those of us who became eligible from June missed out on this important Energy Supplement. Now they want us to sell our homes. What next? Meanwhile politician own superannuation and retirement nest eggs are more than adequate for them. It is a real slap in the face for those of us who have worked hard to ptovide for ourselves with superannuation after paying taxes all our working lives. It's just continuing the mean policies of Joe Hockey's budget. 

Kerrie
Kerrie from NSW replied to Peter:

Why should one be allowed to get the pension and be living in a big expensive family home at the expense of taxpayers? If you want to continue living in such homes then the amount of pension you receive should be deducted from your estate after your death. 

Carol
Carol from NSW replied to Kerrie:

And I forgot to add Kerrie that you also have to pay a management fee until your unit is sold. And we are not living in our homes at the expense of the TAXPAYER - most of us worked and paid taxes - IT IS THE PERSON WHO HAS NEVER WORKED THAT IS LIVING OFF THE TAXPAYER. GET YOUR FACTS STRAIGHT 

Kerrie
Kerrie from NSW replied to Carol:

Whole system of age care is currently under review and I for one would not sign any of those current agreements without substantial changes. 

Lyn
Lyn from NSW replied to Peter:

Couldn't agree more. Those of us now retired never had the benefit of an $18,200 tax-free threshold on earnings in our working lives. We paid tax in our working lives for donkey's years with a tax-free threshold of only between $5400 and $6000 p.a. until Yr 2000. I have no idea why Fiftyup members don't support my idea of the Govt re-introducing the same lower threshold of $6000 for all current employees ----there are about 11million of them according to the ABS site and this would equate to about $44/wk for all current employees which would equal the $2.4 billion that the 2015 Budget was looking to save from the 1/1/17 measures for hitting retirees. 

John
John from NSW commented:

Politicians are not spending OUR money so well that we would want to give them more. Politician pays and perks need to be reviewed and reforms put in place before raising any proposals to take more from pensioners. As it is, recent changes reducing access to part pensions, resulting in savings being drawn down a lot sooner then had been planned, will mean full pensions sooner than planned. Common sense is not so common in Canberra! As far as voting is concerned, what choice do we have? If only we had a credible third major party, they would easily win at the next election, even if their policies were a bit weak. 

joseph
joseph from NSW commented:

I suppose if Mr Morrison and other politicians are happy to spend their retirement in a 1 bedroom unit we should be happy to do the same; but until then please leave my unit alone!! 

Louise
Louise from NSW commented:

Low interest on term deposits equals less money to spend and less tax, if the pension concessions were eligible for everyone past say 70 as it used to be, there would be less incentive to get rid of money and seek the pension, we cannot have a situation where self funded retirees are living on less than the pension and are paying tax to fund the pension, unfair and outrageous 

Kerrie
Kerrie from NSW replied to Louise:

You are supposed to spend you capital not just the interest yo receive on it in retirement. That is the way the system is designed. Not so you can get the pension and leave a windfall to your family upon your death. 

Carol
Carol from NSW replied to Kerrie:

Gee Kerrie you certainly got out of the wrong side of the bed. CHEER UP GIRL 

Kerrie
Kerrie from NSW replied to Carol:

No I'm just a taxpayer who has had enough of the now welfare dependent society in which we now live where people expect to be paid by tax payers for doing nothing. 

Lyn
Lyn from NSW replied to Kerrie:

Kerrie, You will be a retiree one day so don't forget that and when you have to work to age 67 under the new rules and could well be 70 very soon, I daresay you will be gagging to get your share of the pension pot because you will be saying also----BUT I paid tax all my working life. . We retirees have also been taxpayers all our working lives and the Govt has broken a contract with us that as far as I am concerned was a legal contract in return for me paying tax. 

Kerrie
Kerrie from NSW replied to Lyn:

I am a self funded tax paying retiree and no I didn't have to wait until I was 67 because I had the cholce to retire much earlier as I didn't put my hand out for welfare. I too paid tax all my life but there will be no welfare for me and I don't know about any contract with the Government for anything. 

Lyn
Lyn from NSW replied to Kerrie:

An age full or part pension is not 'welfare'. Lucky you to retire early. 

Kerrie
Kerrie from NSW replied to Lyn:

An age pension is welfare. 

Patricia
Patricia from NSW commented:

Even if retirees downsized (and stamp duty was waived) it will save the Govt a fortune as it would affect their pension outcome. So someone who is assert rich but cash poor would lose a lot of benefits. Morrison is being very sneaky. The politicians should scrap their enormous pensions and put that back into revenue. Having to sell family home just to help out our very greedy govt is a no go. Unless there is a benefit to homeowners no way 

Kerrie
Kerrie from NSW replied to Patricia:

Scott Morrision is on the right track here in that if you wan the pension then you should have to use up all your assets before assessing the pension. 

Someone
Someone from NSW commented:

I think the treasurer should back off older retirees' superannuation. Some of us made salary and holiday sacrifices to make life a little easier in our old age only to now find that we could be penalised for this effort.. The bank interest rate has been so low there was no point in leaving any money tied up in term deposits. The proposed higher GST will only add more woes to retirees on part pension as meeting expenses these days is hard enough without making it more difficult. The government should look to big companies and themselves for more tax as they have loop holes which the ordinary Joe Blow can't compete with. Leave our Superannuation alone and don't increase the GST. 

peter
peter from NSW commented:

Raising the GST is a massive problem for self funded retirees and pensioners. As we no longer pay tax, how are we compensated for any rise in this consumption tax. A five percent rise and a broardening of this tax will prove nasty. 

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