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Family homes could be used to kick people off the age pension
Topic Started: 5 Aug 2014, 09:20 PM (3,292 Views)
peter fraser
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Family homes could be used to kick people off the age pension
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KICKING people off the age pension by including the family home in the asset test has been raised in Budget negotiations with Treasurer Joe Hockey.

Liberal Democrat senator David Leyonhjelm yesterday told Mr Hockey retirees should be using use reverse mortgages to unlock equity for their retirement, not rely on taxpayers.

He said people feared they would be forced to move, but a well-regulated reverse mortgage industry could give those who no longer qualified for the pension access to cash “with no risk of them being chucked out”, he told Mr Hockey.

A couple who own their home can have $279,000 in assets and a single pensioner can have $196,750 and receive the full pension, no matter how valuable their home is.

A couple can have up to $1,110,500 in assets, and a single person up to $748,250, and still be paid a part-pension.

“If you’ve got a million-dollar house, you should be releasing the equity in that house before you call on your fellow Australians to pay for your pension,” Senator Leyonhjelm said.

“And the problem, of course, is those pensions are being paid for by people who don’t own a house.”

Mr Hockey has been trying to garner crossbench support for his Budget before Parliament resumes this month.

“I will meet with anyone who is sensible and the independent senators so far are proving to be sensible,” he said.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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peter fraser
5 Aug 2014, 09:20 PM
Family homes could be used to kick people off the age pension
Link


KICKING people off the age pension by including the family home in the asset test has been raised in Budget negotiations with Treasurer Joe Hockey.

Liberal Democrat senator David Leyonhjelm yesterday told Mr Hockey retirees should be using use reverse mortgages to unlock equity for their retirement, not rely on taxpayers.

He said people feared they would be forced to move, but a well-regulated reverse mortgage industry could give those who no longer qualified for the pension access to cash “with no risk of them being chucked out”, he told Mr Hockey.

A couple who own their home can have $279,000 in assets and a single pensioner can have $196,750 and receive the full pension, no matter how valuable their home is.

A couple can have up to $1,110,500 in assets, and a single person up to $748,250, and still be paid a part-pension.

“If you’ve got a million-dollar house, you should be releasing the equity in that house before you call on your fellow Australians to pay for your pension,” Senator Leyonhjelm said.

“And the problem, of course, is those pensions are being paid for by people who don’t own a house.”

Mr Hockey has been trying to garner crossbench support for his Budget before Parliament resumes this month.

“I will meet with anyone who is sensible and the independent senators so far are proving to be sensible,” he said.
Well, here is new idea...
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herbie
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Still struggle to see why I (what's paid tax all me life) shouldn't get a pension, when them what's never paid tax in their life do?

Oh well, that's just Socialism for you ... :)

PS: I flogged of me $500K 'mini-mansion' a decade ago. And now live happily in a $300K shitbox. And am thinking of downgrading further ... I'll do pretty much anything ta stay WAY under them Socialist pricks' radars; AND to avoid working for a living - Fuck THAT! If they don't have to, why should I? ... :)
Edited by herbie, 5 Aug 2014, 09:52 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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hoofarted
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Forced savings they call it. Do not forget that these people had a lifetime of paying significantly less tax than we do today. They did not have GST or even CGT. Lived the dream and now want someone else to pay till they die.
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peter fraser
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herbie
5 Aug 2014, 09:44 PM
Still struggle to see why I (what's paid tax all me life) shouldn't get a pension, when them what's never paid tax in their life do?

Oh well, that's just Socialism for you ... :)

PS: I flogged of me $500K 'mini-mansion' a decade ago. And now live happily in a $300K shitbox. And am thinking of downgrading further ... I'll do pretty much anything ta stay WAY under them Socialist pricks' radars; AND to avoid working for a living - Fuck THAT! If they don't have to, why should I? ... :)
Yep this is straight out of the Karl Marx playbook. It's a particularly abhorrent idea.

Once people understand what this means, all those people who scrimped and saved to pay off their homes and accumulate some savings for their retirement instead of living the high life, will just stop saving and they will spend it all. Why be penalised for trying to do the right thing, why not do the wrong thing and spend every dollar earned and then get the full pension, a pension supplement and rental assistance.

The senator is obviously on drugs.
Any expressed market opinion is my own and is not to be taken as financial advice
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herbie
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hoofarted
5 Aug 2014, 09:47 PM
Forced savings they call it. Do not forget that these people had a lifetime of paying significantly less tax than we do today. They did not have GST or even CGT. Lived the dream and now want someone else to pay till they die.
I call bullshit on that one Hoof - Tax rates were considerably higher when I was in my peak earning years than they are now - I'm 55.

But anyway, you get what life deals you at the time - I felt hard done by then. And still do. (Except when I decide not to ... :) )

You feel hard done by now. And still will in the future - Suck it up! ... This is YOUR Life - LOL!

PS: Fuck I'm getting sick of hearing youse 'dislikeable persons' crying ...

PPS: Wanna get house prices down? Halve wages 'n double interest rates - That'd work for me ... :D :D :D
Edited by herbie, 5 Aug 2014, 10:07 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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hoofarted
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One of the main driving factors proclaimed by nearly everyone who encourages the procurement of massive amounts of debt is that this is a forced savings vehicle. So, if I rent my entire life and land up with $2million and someone owns their house worth $2million, fully paid, why should my assets be assessed but not yours?

P.S. I have ALWAYS been a massive fan of double digit interest rates. At least that way we are pricing risk correctly.
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o2sd
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peter fraser
5 Aug 2014, 09:59 PM
Yep this is straight out of the Karl Marx playbook. It's a particularly abhorrent idea.
You been drinking again?
Quote:
 
Once people understand what this means, all those people who scrimped and saved to pay off their homes and accumulate some savings for their retirement instead of living the high life, will just stop saving and they will spend it all. Why be penalised for trying to do the right thing, why not do the wrong thing and spend every dollar earned and then get the full pension, a pension supplement and rental assistance.

That would be a much better economic outcome for everyone. People who scrimp and save to pay off their homes are a drag on the economy. If instead they spent that money, business would be booming, taxes would be collected and pensions would be easily paid. You have got the right and wrong thing to do the wrong way around.
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The senator is obviously on drugs.

Somebody is ... :re:
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vdmruss
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Finally, a step in the right direction.

It is only fair that pensioners should exhaust all possible avenues before sucking the taxpayer teat dry. Housing has been turned into a commodity - why should the Family Home it be exempt? It's funny how the term "Family Home" comes out to defend against such propositions.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours.
Those who can, do. Those who can't, teach.
"It's an itchy blanket, it's designed to remind you how lucky you are"
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peter fraser
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o2sd
5 Aug 2014, 10:21 PM
You been drinking again?


No actually.

Quote:
 
That would be a much better economic outcome for everyone. People who scrimp and save to pay off their homes are a drag on the economy. If instead they spent that money, business would be booming, taxes would be collected and pensions would be easily paid. You have got the right and wrong thing to do the wrong way around.

Yes I agree that it's good for the economy but not so good for the individual.
I just don't think that you will find many people with absolute faith in the government to do the right thing with our taxes and retirement plans, probably yourself included.

Given that there will always be a level of distrust, people will choose to hold their own savings. If they are penalised for holding savings in their home then they will find other ways to beat the system.

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Somebody is ... :re:


Yep but it isn't me.
Any expressed market opinion is my own and is not to be taken as financial advice
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