You’ll know if your pension is to be cut sooner than you think 15

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Many over-60s are eagerly awaiting the outcome of that new asset test coming into effect on January 1, 2017 to see how it will affect their pension. However, word on the street is that if you’re going to be affected a letter is being popped in the mail for you… and you’ll have it sooner than you realise.

According to a report in The Daily Telegraph, you could be one of almost 700,000 pensioners to find out sometime near Christmas if you will face cuts to your pension because of your investments.

Alan Tudge, human services minister, has revealed that those likely to be affected and those just outside of the threshold will receive a first letter in the weeks ahead.

“It will outline the new assets thresholds,” Tudge says. “In December, another letter will be sent to those impacted with specific details on how their payment will change.”

The pension is set to be cut by $3 a fortnight for every $1,000 of assets beyond the new thresholds, under the new assets test.

According to The Daily Telegraph, the asset-free area for homeowner couples is to be $375,000; single non-homeowners will have an asset-free area of $450,000; and non-homeowner couples will have an asset-free area of $575,000.

It is expected that roughly 166,000 pensioners will receive a modest increase, while the majority of Australia’s 4 million pensions will not be affected by the change at all.

Do you have concerns about how you’ll be affected by the asset test changes? Are you already struggling to live on a pension? What message would you like to send to the government?

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  1. While there may be an argument that Mr. Costello was too generous with pension eligibility, taking back the cut off point for the assets test to prior 2007 levels is quite extra-ordinary. Surely at the very least, 2007 levels plus indexation would have been more rational.
    I must also note that as “ordinary people” have had their access to a pension gets cut the “pollies” have shown no inclination to reduce their generous pension scheme. Their excuse is that their remuneration is set by an “independent” body!!
    They are eligible to a lifetime indexed pension (provided they get elected 3 times) if they get booked out or retire. This pension becomes immediately available no matter what age or even if they take another job. No wonder the likes of ex Senator Conroy at age 53 is happy to walk away! He is not alone in the dozens (hundreds??) of pollies who we taxpayers are looking after.

  2. If any politician has assets greater that the $450,000 a single home-owner pensioner is allowed, how can they possibly be eligible for any government pension whatsoever? How wrong is this?

  3. I am confused by the negative reports how much the Age Pension is costing. But they never do any comparatives against other pensions or unemployment. The major confusion to me is since the 1980’s Super has been compulsory so many more people you would think, would receive less pension. So if the working Australian contributes to Super and when they retire receive income from their Super where has the increase come from. Australians they claimed weren’t breeding enough to sustain a satisfactory population growth. So even more confusing.
    It can only have come from the Australian Government bringing in more people from overseas who are welfare dependent. We then have that idiot Turnbull telling the UN we will annually increase our refugee intake to 19,000.
    So non Australians who are unlikely to work for many decades, get greater benefits and economically drain our welfare. Then the Australian Government who are meant to be looking after its own, cannot sustain proper health resources for an ever growing population, education is suffering, taxpayers now need to work to 70 with the likelihood of dying on the job. All to support the Federal Government’s irresponsible management of population growth, foreign intake of people and their families that remain on welfare for life and ultimately committing this country to more debt.

    3 REPLY
    • All these illegal immigrants are taking the extras

    • Agreed well said.
      I am about to retire at 68 years old
      I went to Centrelink for the first time in my life in August. Just to see what I could have.
      I was the best dressed there, I had shoes on.
      I have a small home business that I have struggled to build up for the past 15 years on my own, planing to supplement my entitled government pension, after paying tax for 53 years, and fighting for this country.

      Now the feral refugees get my entitlement. I get nothing.

      Mr Turnbull, you are alienating the Baby Boomers that have supported your Liberal party all of their life
      BUT NO LONGER

      1 REPLY
      • What rot. I live opposite the Centrelink office in a suburb with lots of refugee families. Most of the people visiting that office are white Australians as the refugees are too busy working, starting businesses that employ Australians or getting an education. Refugees get no more, but often less, than Australians and other immigrants. Try searching refugees on the Centrelink website and you will find the real facts, not redneck, xenophobic claptrap.

        1 REPLY
        • Thank you for putting truth and facts into the discussion. There are many reasons for the government targeting pensioners as a soft option for reducing entitlements (or removing them altogether) but using refugees as scapegoats because they are ‘taking more’ than ordinary Aussies are eligible to claim is utter rubbish.

  4. is it fair that politicians are excempt from this start cutting there pensions and see how they like it

  5. It is amazing how the Government can overpay private schools (private school welfare), propose a plebiscite costing about $200m, pay themselves hefty pensions and benefits (politician welfare), cut company tax (company welfare), not collect tax from multinationals (multinational welfare), ignore small businesses that don’t issue receipts and don’t even use a cash register (small business welfare), turn a blind eye to underpayment of people on 457 visas resulting in a lower tax take (457 welfare), collect no tax from backpacker earnings (backpacker and rural welfare) etc etc and then cut pensions because they are unaffordable. What a lot of bull. Thanks liberals and greens you are real heros! You might even earn the name the Robin Hood Government….robin the old to give to the rich. By the way don’t think this is Labor propaganda as they have done precious all about this matter also.

    1 REPLY
    • Why would this government do anything that would hurt themselves or the one per cent. All they want to do is attack the people who can do little to fight back . Turnbull seems to forget that they are in goverment by the smallest percent and the way things are happening the next election will be sooner than later. Tax the multi nationals and stop paying rediculous welfare to immigrants and solve the problem.

  6. I totally agree why should our hard earned money go to support people from another country when are the government going to support the people who have worked all there lives to build this country to be what it is today and fought for this country no they would rather give it to people who will not stay and fight for there own country no come to Australia you will get it all for nothing I’m sick of my hard earned money coming to someone who just turns up in our country and expect us to look after them I bet if we went to there country we would get nothing we would be deported Australian look after your first we give enough foreign aid all these people that come in have caused nothing but violence our country has never been like this with all the violence when are the power that be going to wake up they are to scared that someone make think they are racist it not racisum it’s just looking after your own.

    1 REPLY
    • Thanks mate, I am from another country. Guess what I chose to come here and I have worked and raised a family just like the vast majority of migrants to this country. The thanks I get for raising 5 Australian taxpayers is to have my pension cut from next year if I foolishly want to spend a few months visiting my elderly mother, my sick sister and my brother who has early stage Alzheimer’s. If I had been born here, never worked or worked for a couple of years until getting married and never working again I would receive the full pension while overseas. To add insult to injury my paltry, frozen British pension reduces my Aus pension even though I have lived here, worked here, paid taxes here for 32 years.

  7. 76 year old changes from disability pension because has reached age pension age ,looks after an aged friend saving the government cost of carers pension in gratitude by the friend he & his wife are left the friends home ,& a some money .for the first time in many years feel that they can help in the care of their handicapped granddaughter ,. we now find we may lose our pension
    76 yo male has C.O.P.D , diabetics, heart ,psoriasis & Macular degeneration does not need any more stress .cheesed off that polly’s get pay rises & perks in that leave the average Australian wondering why can’t you the people charged with the welfare of our ageing population,perhaps take another method to reduce the budget ,than penalizing those least able to afford it .i have voted for the coalition ever since reaching voting age ,seriously considering changing my voting habits.

  8. I have many friends, very well educated & were well employed & earned very good money. While talking to some of them, all said, they are not entitled to a pension as they used their money wisely. But all said, they don’t want a pension, but want the government to refund the taxes they paid for nothing, got nothing & will get nothing. If someone say, the roads were built. That is why the government charged a fuel levy, which is now, 0.40 + 10% GST = 0.44 cents per litre of fuel, and they paid for over 60 liters a week. All paid Medicare levy, although they never or hardly used it, but may need to use services at their old age. All paid customs duty & port charges for any goods imported. All paid several taxes, at present the country has over 100 taxes. All paid car registration & insurance. So, what all ask from the Federal Government is to refund all unused money to the people who advanced it. If all educated people who did good jobs, & the members of the armed forces who contributed their time & saved some wealth, are denied a pension, why is it, only the politicians, people who didn’t want to study & do a good job, drunkards & gamblers who wasted money, those who pretend the lack of English knowledge to do a job, those who never contributed to the country, are looked after. What the government should do is to make sure to pay a pension to people who made a contribution to the country, before looking after the bludgers.

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