What exactly are seniors losing?

Confused? We are! All politics aside, it’s easy to be baffled about exactly what changes are coming to senior benefits after last week’s budget, so here at Starts at 60 we’re going to try and sort the facts from the faff.

• When it comes to the Commonwealth Seniors Health Card, the program that exists in agreement with individual states and offers discounts on electricity, phone, travel and council rates costs is set to be terminated on July 1, 2014 (apparently making a government saving of $1.3 billion over four years and costing pensioners between $1000 and $2000 a year).

• The Seniors Supplement that is attached to the Seniors Health Card for self-funded retirees is also set to be axed, on September 20, 2014, at an estimated cost to couples of more than $1300 a year.

• New deeming rules are coming into effect for the aged pension. What this means is that superannuation will be included in the deeming net, so it will be presumed to have accrued a return. Basically, super will now come under the header of asset and income – and will be tested accordingly. In 2017, deeming will start with balances of $30,000 ($50,000 for couples), down from $46,600 at which it sits currently.

• The Mature Age Worker’s Tax Offset – which was designed to help over-55s in the workforce who earn less than $63,000 a year – will be scrapped on July 1, 2014.

• The income support bonus on Centrelink and Veterans’ Affairs payments that comes twice a year is being stopped.

• The Dependent Spouse Tax Offset is also being cancelled on July 1, 2014.

On the other hand, some of the things to emerge from the budget that could benefit over 60s include the $10,000 incentive for employers that hire older workers who have been on unemployment benefits for six months, which is being paid for by the scrapping of the Mature Age Workers’ Tax Offset. The axing of the carbon tax is also set to save the average household about $550 next year. In a transport plus, the government is setting aside $300 million for “pre-construction works” on a rail link between Brisbane and Melbourne.

As with everything, there are two sides to the budget, but these are the elements most likely to affect the over 60s.

Let us know whether there any other sections of this year’s budget that you think could affect you in the comments below…