‘You can kiss your pension goodbye': Radical plan to remove Boomers
Imagine a world where your parents or grandparents live in a modest three or four-bedroom home that's soared in value thanks to the housing crisis.
Or maybe you're living in this big family home where young children grew up but have since flown the nest.
Considering this property was purchased 30 years ago, there's no mortgage.
Now, you or your loved ones receive the Age Pension, but the family home is too big to manage, so it's time to 'rightsize' and explore more age-friendly living options. Unfortunately, Home Care packages aren't an alternative, with more than 80,000 people waiting for funding.
This scenario isn't a stretch of the imagination – it's reality for older Australians.
But now we run into trouble. While equity is tied up in this family home, it lives in a tax-free environment.
However, if that property sells for $1.2m, hypothetically, that cash is now on the tax table.
If $600,000 goes towards a home in a retirement village, a significant sum is left over. So you can fund your retirement, right?
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Well, no. You can kiss your pension goodbye, or a big chunk of it at least.
If you're a single pensioner, you've just rocketed past the $314,000 allowable assets cap.
You've just been financially penalised for moving into a more manageable home or a close knit community. And, during a nationwide housing crisis, for freeing up a property for a younger family.
Our new report, Removing rightsizing roadblocks: Homes for all Australians, shows there are more than 59,000 homes across the country that could become available to young families if the Age Pension cap was lifted to $550,000 and Commonwealth Rent Assistance (CRA) eligibility was reformed.
CRA is wonderful – unless you're looking at a retirement village.
Right now, pensioners who 'rightsize' into retirement villages can't spend more than $252,000 before losing eligibility. At that price, good luck despite village affordability.
MORE NEWS: How Labor and LNP pitches to first home buyers compare
Residents in other seniors' communities can access CRA, regardless of purchase price. It's senseless.
Housing markets have totally transformed in recent years, yet the Age Pension assets test and CRA eligibility remain relics of the past.
If older Australians 'rightsize' and governments want more homes freed up, this choice must come without penalty.
Over a 30-year period from 1994 to 2024, capital city median house prices increased by almost 600 per cent, while allowable assets to receive a full Age Pension increased by less than 180 per cent for a single person.
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In 1997, the CRA cap covered 55 per cent of the median house price, but today just 26 per cent.
If it kept pace, it would be about $550,000 – incidentally the national average price of a two bedroom retirement unit – rather than $252,000.
Good policy is never set in stone – it adapts. Bad policy remains frozen.
That's why the Age Pension assets test and CRA must evolve – and Australia can support healthier and happier retirees, provide more housing for families, and reduce strain on aged and healthcare systems.
Right policy, right time.
– By Daniel Gannon, executive director of the Retirement Living Council.
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The Advertiser
5 hours ago
- The Advertiser
Liberals concede tax cut stance a 'strategic mistake'
The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News. The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News. The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News. The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News.
The Advertiser
5 hours ago
- The Advertiser
Hyundai expects an exodus of brands due to new Australian emissions regulations
Australia's stringent new vehicle emissions regulations are set to send a host of auto brands running from these shores, according to local Hyundai chief Don Romano. The ink officially dried on the federal government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it legislation designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1. The recent federal election brought with it some uncertainty about the NVES, with former Liberal leader Peter Dutton promising to scrap the legislation. However, in the wake of Labor's win led by Anthony Albanese, there's no longer any doubt about whether it will be enforced. Speaking to CarExpert at the launch of the pint-size Hyundai Inster electric SUV, Mr Romano said that many automakers will be caught off guard by the punitive new regulations. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. "When it comes down to NVES, there's going to be a lot of brands that are going to start falling apart because they're burying their heads in the sand," said Mr Romano. "They're not doing the math, they're not looking at just how much this is going to cost them to stay in business in Australia. "I think you're going to see an exodus. You're going to see a number of brands that finally say 'I can't do it', unless the government that we just re-elected makes the decision to go in a different direction, which I think is unlikely given the election results." Hyundai has backed the NVES from early in the piece, expressing confidence in meeting the Australian Government's tightening CO2 targets between 2025 and 2029. However, some of its rivals have been less supportive and others including Toyota have indicated that fines would ultimately be passed onto consumers in the form of price hikes. Having taken over as Hyundai Australia CEO just a few months ago, Mr Romano will lead the brand in its response to NVES with a focus on electric vehicles (EVs) and other 'future energy' initiatives. "Let's do it like Europe, [where] they're just going, 'okay, we've got to live with it, let's deal with it'. And guess what we're seeing right now in Europe? A resurgence in EVs," he said. While Hyundai is prepared to tackle tightening emissions regulations, Mr Romano still sees significant room for improvement in how policy is used to accelerate the transition towards greener forms of transport. "What the government is doing is half-baked," he concluded. "They're pushing us to move to BEVs, only us. What they're missing, not just in Australia but everywhere, is the fact that the gas [petroleum] companies aren't being pushed to put in the charging infrastructure. "If you were to do that, I think that resurgence would push even higher. Right now we're at 20 per cent BEVs in Europe, with a much more robust charging infrastructure. "Once you start doing that, then you start getting economies of scale, and then all the costs start to come down. At that point you're going to see all the advantages of BEVs, and they'll be less expensive ultimately than an ICE vehicle. "The only way to get there… is to have a more robust charging infrastructure that engenders a lot of confidence in buyers to buy." Less than one in 10 vehicles sold in Australia last year were EVs (91,292 of more than 1.22 million), although that number was up 4.7 per cent on the previous year. MORE: Everything Hyundai MORE: How Hyundai Australia's new boss plans to reverse Korean brand's sales slide Content originally sourced from: Australia's stringent new vehicle emissions regulations are set to send a host of auto brands running from these shores, according to local Hyundai chief Don Romano. The ink officially dried on the federal government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it legislation designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1. The recent federal election brought with it some uncertainty about the NVES, with former Liberal leader Peter Dutton promising to scrap the legislation. However, in the wake of Labor's win led by Anthony Albanese, there's no longer any doubt about whether it will be enforced. Speaking to CarExpert at the launch of the pint-size Hyundai Inster electric SUV, Mr Romano said that many automakers will be caught off guard by the punitive new regulations. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. "When it comes down to NVES, there's going to be a lot of brands that are going to start falling apart because they're burying their heads in the sand," said Mr Romano. "They're not doing the math, they're not looking at just how much this is going to cost them to stay in business in Australia. "I think you're going to see an exodus. You're going to see a number of brands that finally say 'I can't do it', unless the government that we just re-elected makes the decision to go in a different direction, which I think is unlikely given the election results." Hyundai has backed the NVES from early in the piece, expressing confidence in meeting the Australian Government's tightening CO2 targets between 2025 and 2029. However, some of its rivals have been less supportive and others including Toyota have indicated that fines would ultimately be passed onto consumers in the form of price hikes. Having taken over as Hyundai Australia CEO just a few months ago, Mr Romano will lead the brand in its response to NVES with a focus on electric vehicles (EVs) and other 'future energy' initiatives. "Let's do it like Europe, [where] they're just going, 'okay, we've got to live with it, let's deal with it'. And guess what we're seeing right now in Europe? A resurgence in EVs," he said. While Hyundai is prepared to tackle tightening emissions regulations, Mr Romano still sees significant room for improvement in how policy is used to accelerate the transition towards greener forms of transport. "What the government is doing is half-baked," he concluded. "They're pushing us to move to BEVs, only us. What they're missing, not just in Australia but everywhere, is the fact that the gas [petroleum] companies aren't being pushed to put in the charging infrastructure. "If you were to do that, I think that resurgence would push even higher. Right now we're at 20 per cent BEVs in Europe, with a much more robust charging infrastructure. "Once you start doing that, then you start getting economies of scale, and then all the costs start to come down. At that point you're going to see all the advantages of BEVs, and they'll be less expensive ultimately than an ICE vehicle. "The only way to get there… is to have a more robust charging infrastructure that engenders a lot of confidence in buyers to buy." Less than one in 10 vehicles sold in Australia last year were EVs (91,292 of more than 1.22 million), although that number was up 4.7 per cent on the previous year. MORE: Everything Hyundai MORE: How Hyundai Australia's new boss plans to reverse Korean brand's sales slide Content originally sourced from: Australia's stringent new vehicle emissions regulations are set to send a host of auto brands running from these shores, according to local Hyundai chief Don Romano. The ink officially dried on the federal government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it legislation designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1. The recent federal election brought with it some uncertainty about the NVES, with former Liberal leader Peter Dutton promising to scrap the legislation. However, in the wake of Labor's win led by Anthony Albanese, there's no longer any doubt about whether it will be enforced. Speaking to CarExpert at the launch of the pint-size Hyundai Inster electric SUV, Mr Romano said that many automakers will be caught off guard by the punitive new regulations. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. "When it comes down to NVES, there's going to be a lot of brands that are going to start falling apart because they're burying their heads in the sand," said Mr Romano. "They're not doing the math, they're not looking at just how much this is going to cost them to stay in business in Australia. "I think you're going to see an exodus. You're going to see a number of brands that finally say 'I can't do it', unless the government that we just re-elected makes the decision to go in a different direction, which I think is unlikely given the election results." Hyundai has backed the NVES from early in the piece, expressing confidence in meeting the Australian Government's tightening CO2 targets between 2025 and 2029. However, some of its rivals have been less supportive and others including Toyota have indicated that fines would ultimately be passed onto consumers in the form of price hikes. Having taken over as Hyundai Australia CEO just a few months ago, Mr Romano will lead the brand in its response to NVES with a focus on electric vehicles (EVs) and other 'future energy' initiatives. "Let's do it like Europe, [where] they're just going, 'okay, we've got to live with it, let's deal with it'. And guess what we're seeing right now in Europe? A resurgence in EVs," he said. While Hyundai is prepared to tackle tightening emissions regulations, Mr Romano still sees significant room for improvement in how policy is used to accelerate the transition towards greener forms of transport. "What the government is doing is half-baked," he concluded. "They're pushing us to move to BEVs, only us. What they're missing, not just in Australia but everywhere, is the fact that the gas [petroleum] companies aren't being pushed to put in the charging infrastructure. "If you were to do that, I think that resurgence would push even higher. Right now we're at 20 per cent BEVs in Europe, with a much more robust charging infrastructure. "Once you start doing that, then you start getting economies of scale, and then all the costs start to come down. At that point you're going to see all the advantages of BEVs, and they'll be less expensive ultimately than an ICE vehicle. "The only way to get there… is to have a more robust charging infrastructure that engenders a lot of confidence in buyers to buy." Less than one in 10 vehicles sold in Australia last year were EVs (91,292 of more than 1.22 million), although that number was up 4.7 per cent on the previous year. MORE: Everything Hyundai MORE: How Hyundai Australia's new boss plans to reverse Korean brand's sales slide Content originally sourced from: Australia's stringent new vehicle emissions regulations are set to send a host of auto brands running from these shores, according to local Hyundai chief Don Romano. The ink officially dried on the federal government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it legislation designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1. The recent federal election brought with it some uncertainty about the NVES, with former Liberal leader Peter Dutton promising to scrap the legislation. However, in the wake of Labor's win led by Anthony Albanese, there's no longer any doubt about whether it will be enforced. Speaking to CarExpert at the launch of the pint-size Hyundai Inster electric SUV, Mr Romano said that many automakers will be caught off guard by the punitive new regulations. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. "When it comes down to NVES, there's going to be a lot of brands that are going to start falling apart because they're burying their heads in the sand," said Mr Romano. "They're not doing the math, they're not looking at just how much this is going to cost them to stay in business in Australia. "I think you're going to see an exodus. You're going to see a number of brands that finally say 'I can't do it', unless the government that we just re-elected makes the decision to go in a different direction, which I think is unlikely given the election results." Hyundai has backed the NVES from early in the piece, expressing confidence in meeting the Australian Government's tightening CO2 targets between 2025 and 2029. However, some of its rivals have been less supportive and others including Toyota have indicated that fines would ultimately be passed onto consumers in the form of price hikes. Having taken over as Hyundai Australia CEO just a few months ago, Mr Romano will lead the brand in its response to NVES with a focus on electric vehicles (EVs) and other 'future energy' initiatives. "Let's do it like Europe, [where] they're just going, 'okay, we've got to live with it, let's deal with it'. And guess what we're seeing right now in Europe? A resurgence in EVs," he said. While Hyundai is prepared to tackle tightening emissions regulations, Mr Romano still sees significant room for improvement in how policy is used to accelerate the transition towards greener forms of transport. "What the government is doing is half-baked," he concluded. "They're pushing us to move to BEVs, only us. What they're missing, not just in Australia but everywhere, is the fact that the gas [petroleum] companies aren't being pushed to put in the charging infrastructure. "If you were to do that, I think that resurgence would push even higher. Right now we're at 20 per cent BEVs in Europe, with a much more robust charging infrastructure. "Once you start doing that, then you start getting economies of scale, and then all the costs start to come down. At that point you're going to see all the advantages of BEVs, and they'll be less expensive ultimately than an ICE vehicle. "The only way to get there… is to have a more robust charging infrastructure that engenders a lot of confidence in buyers to buy." Less than one in 10 vehicles sold in Australia last year were EVs (91,292 of more than 1.22 million), although that number was up 4.7 per cent on the previous year. MORE: Everything Hyundai MORE: How Hyundai Australia's new boss plans to reverse Korean brand's sales slide Content originally sourced from:
Perth Now
6 hours ago
- Perth Now
Liberals concede tax cut stance a 'strategic mistake'
The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News.
