Zaph "About half of the aged pension pool goes to people who own a home worth more than $500,000."
In other words, that's a fundamental political resistance level for adverse changes to the Age Pension...
Quote:
"And the family home — the principal asset most Australians use to save over the course of their lives — could also be included in the means test. This would encourage the elderly to either downsize their residences or take out reverse mortgages to support themselves."
Or more likely, this would encourage the elderly to vote against the party proposing such changes...
goneaway
23 Aug 2015, 09:14 PM
He thinks it's a great idea.
I've read lots of his shit over many years.
So know his thoughts well.
And can answer you without doubt on that one at all.
Albeit on ThePauk's behalf - And in his absence.
Having seen his poor fucked up thoughts expressed for so long.
And having watched them devolve into the ever more poor fucked up thoughts that they now currently are.
I disagree. Pauk is obsessed with state control over the assets of retired people, whether rich or poor.
-- He can't stand the SKIN concept, so he wants the state to step in and prevent it.
-- He can't stand that, on a median income basis, an assiduous saver might have a great retirement out of current super rules, while someone that chooses not to go beyond minimum mandatory contributions willl predictably do worse.
-- But he nonetheless benefits from tax-minimising multigenerational trusts set up by other members of his extended rich family, all the while carping about those who exploit the superannuation and Age Pension eligibility issues as best they can.
In other words, he's a hypcrite of the lowest order...
In other words, that's a fundamental political resistance level for adverse changes to the Age Pension...
Or more likely, this would encourage the elderly to vote against the party proposing such changes...
stubby I agree, politically it will be difficult, but as I have stated before, the 'sell' may be along the same path the govt took to 'sell' the change in the taper rates. I support inc the PPOR value above $750K VG into the asset test, however I have never stated that I thought it will be an easy political process, only that it is inevitable as pensions are currently growing at 7% per year and at $43billion, are a very big ticket item for the govt purse.
....just might result in the nation going back to the sorts of dependency ratios we had in the 1970s (or whenever it was?) - But with it hardly being catastrophic anyway....
Total dependency ratios you are talking about as the combination of youth and aged dependency ratios together and is is not accurate to claim that the youth dependency ratio falling, while the aged DR increasing does not have negative budget effects. It does. This myth has been busted before. Your are sounding like a Peter Fraser clone?
Forget tweaking the assets tests, just abolish the damned thing. With every Australian feeling entitled to it, no matter their wealth, something radical is required.
"THE annual cost of delivering the aged pension will rise to a staggering $72 billion within 10 years, dwarfing expenditure on defence, schools and hospitals, the Government’s Commission of Audit has warned."
But [Pauk] nonetheless benefits from tax-minimising multigenerational trusts set up by other members of his extended rich family, all the while carping about those who exploit the superannuation and Age Pension eligibility issues as best they can.
In other words, he's a hypocrite of the lowest order...
Okay cheers, strangely I can read that link but it doesn't seem to appear on this thread?
By the way the reason that trust have a vesting day is to do with three generations or the expiry of the royal family, whichever comes first.
Bardon It is difficult, as the death tax in the past made it very difficult families on farms and small business owners. I would think that when the PPOR is included into the pension asset test that there will be no need for a death/estate tax.
"An inheritance or estate tax is a tax paid by a person who inherits money or property or a levy on the estate (money and property) of a person who has died.[1] International tax law distinguishes between an estate tax and an inheritance tax—an estate tax is assessed on the assets of the deceased, while an inheritance tax is assessed on the legacies received by the estate's beneficiaries." https://en.wikipedia.org/wiki/Inheritance_tax
As you specifically asked about an 'inheritance tax' I will assume you mean earnings from an estate.
I am open to an inheritance tax under the international definition and I do have experience in this as my family does have a trust in perpetuity, where only the earnings are ever distributed. Prompted by members in this forum I looked closer into my family trust and found that there has been two CGT events in the past, given that in AU, Trusts can only have a defined length of time, so in effect a 'death tax' has been paid on the gain in the Trust twice in the past.
All up, I do not think AU will return to an estate or inheritance tax.
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