Moving toward no aged pension in the future
Nationally, the problem that needs to be solved is inequity, so more people can have a dignified life, rather than working until the age of 80 then preparing to die. We have all heard and begun to believe that there may not be a pension in 20 years time. I believe there will be, but the criteria that must be met will eliminate many from receiving a pension. Now there is evidence to support the ‘soon to be reality’ that people will have less to live on, if they are asset rich, and cash poor.
Come 2017 there will be some major changes to the means testing of pensions. The asset test taper rate will increase from $1.50 to $3 per fortnight for every $1,000 above the minimum asset threshold. The maximum asset threshold will drop. The impact will depend on whether someone is asset or income tested, his or her homeowner and relationship status as well.
In plain English, a person’s pension reduces by $3 every fortnight for every $1000 in assessable assets; assets exclude the principle place of residence and superannuation.
Upper threshold for a home owning couple will reduce from $1,163,000 to $823,000; this threshold is where the pension no longer applies. Single homeowner reduces to $547,000 from $783,000.
What this means is the following
91,000 part pensioners will no longer qualify for the pension, and 235,000 will have their part pension reduced.