These areas will be worst hit by pension cuts

New modelling has shown which states and suburbs in Australia will lose the most should the proposed pension cuts go ahead. The

New modelling has shown which states and suburbs in Australia will lose the most should the proposed pension cuts go ahead.

The Herald Sun reports that Victoria is the state that will be hit the hardest, with more than 80,000 Victorians to feel the pinch, losing between $130 and $180 per fortnight from January 2017.

The government plans to save $2.4 billion over the next four years by cutting the part-pension to those who have assets exceeding the new thresholds. The pension cuts are likely to become a key issue in next years’s election.

Bronwyn Bishop’s Sydney seat of MacKellar wins the dubious award of being the single worst affected electorate in Australia. More than 1200 over 60s will lose their part-pension all together, while a further 2390 will lose $139 per fortnight.

So far about 91,000 retirees have lost their part-pension while pensions of another 235,000 have been reduced. All together some 320,000 people, some with private assets of more than $1 million, will be affected when the cuts come into place in 2017.

Labor’s Jenny Macklin said, “Cutting the part-pension shows how out of touch the Liberals are,” she said. “They are hurting struggling pensioners while doing nothing to crack down on the outrageous tax avoidance by multinational companies making billions of dollars.”

Will you be affected by the cuts to the pension next year? Do you think these changes are fair?

  1. I think its fair that if you are sitting on a big retirement fund, you should not receive so much pension.

    • Yes why they have worked all their lives will u be sitting on a big fat retirment fund i sure as hell wont i disagree

    • Tell that to the Govt members who retire on massive “Pensions” plus “perks” and can still earn money, and I mean big money writing books that I absolutely refuse to buy, public speaking and are already wealthy in their own right. Noe that is GREED

    • Makes you wish you’d taken the option of spending your savings on holidays, gifts for the kids etc. . No ,you saved hard to supplement the pension you thought you would get so you could have the odd vacation.

    • I agree, Jenni… yes, fair enough, most have worked hard their adult lives, BUT I think that the ones that are really “cashed up” – and I know many personally – what difference would a old age pension would do for them? If you are on unemployment, and you work part time, isn’t your dole money reduced according to the amount you earn in wages? What’s the difference?

    • try being on the pension in nz you aussies dont know how lucky you are stop bitching, yes I worked all my life saved and gamble with properties and it is getting harder and harder to life especially if you have health problems ie a damaged back that acc will not operate on ie. to much to talk about it is depressing be thankful you are alive, somewhere to live and food on the table I say

    • They may have worked hard and saved hard but the pension should only be for those with nothing….we can not have rich people getting welfare whilst sitting on assets etc, or getting interest so their kids get more money when they die……it is not penalising them it is common sense. Government members get a payment but they don’t get the aged pension as well.

    • Joan Rowe I’m with you Joan ,Turnbull just got a huge pay rise something that most of us only dream about & he already is a very rich man ,his wife gets a $100,000 for being on some committee .,she is already a wealthy woman .

    • Aileen you have obviously never aspired to much. Pollyanna thinking is just plain lame. You must be in favour of the caste system, you know the one that says once a shit carter always a shit carter. I wonder why Gandhi bothered, really I do😒 hope you didn’t hold your children back with such nonsense.

    • Judith Forbes oh really so reward those who did not or want to manage their finances….not talking about those disabled…and punish those who worked hard all their lives. Great incentive for people to work hard. Any wonder there are so many unemployed. Why bother. You have nothing you will get everything. That really makes sense (not). A complete joke how the system works.

    • I agree Urs with you and disagree with Judith, it stinks when people are penalised for working and saving their pennies for retirement, maybe we all should be spending it now and then expect the pension when we retire with nothing. Wonder if the country will be able to afford it then.

    • Judith Forbes AND BELIEVE IT OR NOT SHORTEN AND LABOUR HAVE BLOCKED CUTS TO PENSIONERS WITH 3 MILLION DOLLAR HOMES what else will they do for votes so unlabour bill

    • Sorry but if I’ve worked hard all my life I should get the pension irrespective of how much money I have.

    • I would like to ask a question, all my working life (I am a baby boomer) we knew the pension was there for us when we want to retire, so what happened to that fund our taxes were supposed to be paid into? WHY is there no funds for the older generation any more? Who spent it?
      We did not have superannuation until I was around 36yrs old so not much time to get enough to retire on into that fund.
      I suppose ANOTHER instance of mismanagement?
      Although I do also see the sense of those people who have property that is over a certain value that they do NOT get the pension. Sorry

    • Urs Lee do not mention disabled people on here unless you are disabled or you have a child that is disabled because you would not know anything about that service what so ever….sorry anyone with assets or big amounts of money are not entitled to a pension it was only bought about in the first place to support people with nothing when they retired, it has become a real farce with people earning millions just to give it to their kids then putting their hand out for the pension.

    • Yes you should Barb Mustert but not if you have huge assets and money put away for your kids to live off, you should be living off what you have….not having handouts from the government.

    • Greame Condley I do not give a crap what Labor has blocked….things here where welfare is concerned have to change or the day will come when there will be NO welfare for anyone…..anyone with assets and money should not get a pension, they should live of their own…..

    • Aileen Cutting-Gardner : Your economy is a bit different to ours, and as I understand it NZ has a limit on the amount of money that can be taken out of the country?
      The amount of money that flows out of this country is phenomenal, and it has been going on for longer than I can remember.
      If that money had been restricted, we would be one of the wealthiest countries in the world and nobody would be complaining.
      I used to have a few $$ left over from my pension each week which I saved to buy the kids (grandchildren I am bringing up) clothes, shoes, pay their school fees and books etc. but since this Govt was elected I am lucky to have $5 left.
      For every rise in pension everything else rises (out of proportion) putting people out and many lose their cars or even their homes or can’t afford decent healthy food. Cheaper to fill up with breads, pasta and rice. Good fruit and veg and meats are out of reach for some.

    • Jenni, you (and others who agree with your view) obviously have no understanding of the implications of this change and have swallowed the lies told by the Government and the Greens. It is a grossly unfair change that leaves many who saved far worse of than those who didn’t. It doesn’t help the disadvantaged, but does give a boost to those with a few hundred thousand in savings. It harshly punishes anyone who struggled to save, taking an average of $1.28 for every $1 of earnings, while those lucky enough to still be able to work and earn lose only 50c in the $1. Worse, some who won compensation for accidents etc. that was intended to pay for medical care, home help and disability aids now have to live on their compensation and go without the things it was meant to pay for. The change wipes out incentive and reward completely and makes it far better for people to be irresponsible spendthrifts than to save for retirement.That’s dumb! I calculated that an affected retiree who spent $100,000 on a world cruise would be $178,000 better off for doing so! How STUPID is that.
      The Government has made it sound simple and fair, but it isn’t. They are deceiving people with their rhetoric.
      I wonder why the change, since it WILL NOT save the taxpayer in the medium to long term. It will put the costs of pensions way up. It is clearly NOT fair in any way. But guess what? If hundreds of thousands of people are forced to sell their shares in a down market to get money to live on, the rich will be able to snap up some great bargains, and get much, much richer.

  2. Is this a new change, or from the legislation that went through recently?

    • I think this was trade off from the senate Marlene, the senators would agree to a cut to the CPI , so they went this way instead

  3. I would’t consider myself to be “struggling” if I had over 1 million dollars in assets.

    • The deeming rate (2.5% I think) on that fixed despot is what is your assessable income and that’s not a bad income on that sum. Bear in mind that the family dwelling isn’t included (well not yet anyway). When I retired my bank account balances didn’t make any difference to my pension but I’m assessed as earning interest from them which could, if the sum was large enough, affect my pension. As I said, if I had that much money I wouldn’t consider myself badly off.

    • If that was all in cash , in the bank at the deeming rate of 2.5% and that was all you had to live on, it would give you $25,000 pa.

    • Rosemary Miles You might reconsider when your house starts needing major repairs. So much so that the local council condemns the building as unsafe? It has happened.

    • I have $2000 on term deposit right now. It earns me approximately $150pa in interest. You work out the maths on $1000,000 invested in the same term deposit and tell me that it would leave someone struggling!

    • People will draw down on their capital more quickly than before and be back under the pension threshold with reduced capital. I would like someone who knows more than me about the economics of it to explain how this is going to save the country money in the long term. Possibly, it will, I’m happy to be educated.

  4. meggsie  

    A struggling pensioner with assets of one million dollars. I dont think so

    • Meggsie, please read my posts above, because you are being seriously misled. It’s got nothing to do with ”millionaires getting pensions”. Some of those affected are actually struggling. Just one example, there are people who have ”assets” that are assessed at high value but are completely unsalable in the current market and don’t return any income. There are people who have high needs for medical care, home help and disability aids, but have to spend money that was intended to cover those costs to live on because their pensions are being cut, and will go without the care they need. It’s a lot more complex than the government is making out. But at the end of the day, the big problem is that it will COST THE TAXPAYER MORE. You cannot save the government money by taking incentive out of the system and encouraging more people to be wasteful. If you punish people for saving, the nation will get poorer and the cost of pensions will rise.

  5. What about the big pensions those parasite politicians will recieve? How dare they take from taxpayers when they are bleeding the country dry!

    • Judith, they receive a payout and a pension and super when they leave politics and it’s significant enough that they wouldn’t give a crap about the pension that many people rely on to survive.

    • They do not get the aged pension of which this article is referring too….they get a politicians pension…..

    • And how privileged is that Judith, why would they give a crap when they are not on the same planet.

    • Plus if they get a job, none of their parliamentary perks are affected. Tell me again who the double dippers are?

  6. Stephen Doig  

    The current govt thinks about only one thing themselves

    • Noalene  

      Stephen…all governments think about themselves…no matter which side of the fence they come from…greed…

  7. 80,000 Victorian seniors won’t be happy, doubt they will be voting Liberal, every state has been hit but Victoria has the most losers

  8. Anyone on a million dollar assets are not struggling and should not be getting any pension….at all.

    • Judith, I wish it were that simple. But you are being tricked by a lying Government. Many of those affected do not have a lot of assets, and even those who do have $1 million will struggle if they have to make it last through 30+ years of inflation with low investment returns. The issue is far more complicated than it’s been made to appear. But at the end of the day the big problem with the change is that it takes around $1.28 for every $1 earned, so those who don’t want to see their savings frittered away unfairly will simply go on a few luxury cruises and then claim a pension. By spending $100K on a cruise, they can be about $178,000 better off over 10 years. Why save? And when people wake up and stop saving, the cost of pensions skyrockets and then… wait for it… ALL pensions have to be cut because now there really isn’t enough money to fund them.
      Australians need to wake up and stop believing politicians’ lies and see what is really going on. THESE CUTS MUST BE OPPOSED. The nation’s future depends on it.

  9. I feel sad that anyone has been hurt over this but at least the ones who have been cut can afford to lose the money, normal pensioners cannot. But I am not very hopeful that they will not try to target us again

  10. Its likely all tose in Bronwyns electorate are likely to be relatives so no problem at all! She has been nothing short of a thief in parliament?

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