An Australian National University (ANU) study has suggested that those people living in their own homes worth over $2M are costing taxpayers $680M in age pensions. This is not a huge sum for the time being but demographic trends show the burden to pay for age pensions and aged-care services for coming generations will be immense.
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When Joe Hockey was the Australian Government Treasurer he spoke of social security or welfare as a "safety net" rather than a "cargo net" but still, nearly seven years later, some wealthy retirees are cunningly planning or contriving intentionally, to qualify for a part age-pension or a highly prized Seniors Health Card giving them discounts on medicines and other benefits.
The Inter-generational Report in 2015 showed that the cost of age pensions, aged-care and older Australians health would blow-out the budget as the population ages. By 2040 the health and age-care systems will need additional funding of $57M in capital cost spending from Australian taxpayers.
Talk about a fair-go mate. Where is this sum of money coming from if older Australians continue to resist a sensible review of the retirement income system. Self-reliance and fiscal sustainability are one thing but the time has come to set a cap on the means test exemption of own home equity. It would improve fairness between those who have and those who have not through no fault of their own and who are in dire need of their welfare entitlement or "safety net".
Brian Winship
Port Macquarie