Budget Wrap Up

The first news report I listened to post-Budget this week claimed “banks won’t be happy” and I thought…who cares? It must be a pretty good budget if the banks are the only ones not happy right? It turns out the banks will be hit with a new levy designed to help get the Budget back into surplus. 

For the over-50s, there are also some new tax breaks to encourage downsizing, energy rebates and the reinstatement of the pensioners concession card. And it’s high time. Our current Cost of Living survey shows consistency when it comes to which bills are causing our members the most stress.

Take the 2-minute survey here if you haven’t yet done so

Which bill is hurting you the most?

Private Health Insurance wins so far, followed by electricity. Good news then with the Treasurer announcing a cash bonus for pensioners of $75 for singles and $125 for couples towards your electricity bill. The bonus will be paid by June 30 and includes those on the DSP and single parents.

How easy or difficult do you find the current cost of living?

50.5% said quite difficult

20.8% very difficult

What sacrifices are you making right now to pay your household bills?

31% cutting back on basics such as food, heating and electricity while 27% are going without a holiday. Some members are even going with out heating in winter while one member is still paying last year’s winter electricity bill! Some comments:

• Cutting back on insurance and refinancing loans
• Going without holidays, cut back on heating by not using it and turn off power points when not in use, reviewed all of our insurances by slashing our premiums, cut out home phone and internet services.
• Just about live in the dark - 1 or 2 lights only + tv
• Buying only things on special

Do you expect to be debt-free when you retire? Worryingly, a quarter of respondents say they will take debt into retirement.

Which aspect of the health system would you MOST like to be addressed by the Budget? The Federal Government’s Advisory Committee on Private Health Insurance is plugging away quietly in the background looking at reforms but it appears our members haven’t forgotten that last hike in premiums last April.

• A massive 62% want Private Health Insurance Premiums to be reined in
• Increased funding for public hospitals 13%

Would you like to work beyond the current pension eligibility age of 65?

• No 36%
• Yes but part time 29%

Do you believe Australia is an "ageist" nation? Age Discrimination Commissioner Dr Kay Patterson told us recently on the Daily Drive Radio Show that ageism is the new feminism and 75% believed it was more difficult to keep or find a job. This is very similar to our survey results below.

• Yes - older Australians face regular discrimination 79%
• No - older Australians are not routinely discriminated against – 9.6%

How important is the issue of housing affordability to you and your family?

• 65% report It's not an issue for them personally but they are worried about their children and grandchildren

Briefly other Budget announcements include:

• The government has introduced exemptions to both the $1.6 million cap on a super retirement fund and the non-concessional amount that can be contributed annually, if the top-up is coming from the sale of a large family home. 51% of respondents said they still wouldn’t downsize even with these concessions.
• Over 65’s can add $300,000 extra to their super if they sell their home. They must have held the home for at least 10 years and it has to be their principal place of residence. Both partners in a relationship can do this, meaning combined, a couple can contribute up to $600,000 to super.
• The pensioner concession card will be reinstated to those that lost eligibility to a pension after the January 1, 2017 asset test changes. This gives them access to a range of state or territory discounts and concessions.
• The Medicare levy jumps to 2.5 per cent so the government can fully pay for the National Disability Insurance Scheme.
• First Home Super Savers Scheme, where savers can contribute from their before-tax income into their superannuation fund and be taxed at the 15 per cent superannuation tax rate.