Here we go again… Give up your homes and stop hoarding Australia’s wealth!

The government has been advised that older Australians are “sitting on” $926 billion of wealth in their homes, and that
Living

The government has been advised that older Australians are “sitting on” $926 billion of wealth in their homes, and that we’d all be better off if retirees just sold up or borrowed and started spending.

The landmark report by the Productivity Commission also says that over 60s are “too cautious” about their money and that the home should no longer be excluded from pension eligibility.

We’ve heard it hinted at before, but to have it spelled out this way could make a person feel nervous.

The report says that too many Australians are relying on the pension, and argues that many people stay in homes too large for their needs, spending frugally on the pension, when they could be living more comfortably off the equity in their home, either by selling or via reverse mortgages.

It says that including the family home in the pension asset test or allowing retirees to use its equity would make Australia’s taxation system more fair for other generations.

Including the family home in the assets test would see nearly 360,000 lose the pension, saving the government about $6 billion a year, the report found.

Radical changed like this could not happen straight away: “Given that support for home ownership is embedded in many government policies and in people’s retirement planning, removing the exemption entirely in the immediate future is intractable.”

The report also noted that Australians tend to have “strong aversion to debt in old age”.

Combined Pensioners and Superannuants Association’s Amelia Christie said the idea that older people shouldn’t be allowed to stay in their own homes is “ludicrous”.

“Inbuilt into the age pension is the assumption that people own their own home. It’s only enough money to live on just if you do own your own home,” she said.

“And that’s increasingly not the case for people. People renting in their retirement are faring a lot worse than home owners.

“Importantly though this is the only asset that people have. They need it to be able to survive on the age pension.

“And this idea that keeps on being floated around that older people are somehow not allowed to stay in a free standing home anymore is just ludicrous.”

As social services minister, Scott Morrison said in May, “The family home will not be included in the assets test and never will under a Coalition government.”

Are you tired of being told you should give up your family home? Would you ever consider selling up or getting a reverse mortgage? Do you think the way you spend your money is the business of the government?

 

  1. Fran Spears

    That would violate your rights i suspect. Certainly not worth buying your own home if you are told when you have to sell it.

    • Madeline Pitt

      Yes Fran Spears! Seems like a bit of a dictatorship to me! Retirees have paid their dues over their working lives! Can you imagine one of the wealthy pollies giving up their homes? Some of them are BIG enough to accommodate a small town!!

    • Trish Daley

      Correct ladies on both counts, however I think the plan from the Pollies is to worry everyone to death then they won’t have to pay any PENSIONS.

  2. Libbi Elliot

    Yep I saw this last night on tv, they are not going to let this go and eventually they will legislate this, they either want people to get a mortgage on their homes and live on the proceeds or move to a small cheaper dwelling and live off the money they will pocket from the sale of their homes. At moment they are laying down feelers

    • Trish Daley

      I have already down sized so it’s not an option for me unless I move to the OUT HOUSE, which I guess is what they ultimately want for all of us peasants who are bleeding the country dry. UNLIKE OUR BLOODY POLITICIANS.

    • Trish Daley

      Your damn right Brian, that sounds like a plan Libby we might all have to do it.

    • Pam Gillespie

      Yeah how about getting the rorters off the welfare system first. .. That will be a saving. …

    • Libbi Elliot

      Pam how about they stop rorting themselves $30k for a charter flight for Julia Bishop..get real that would pay for 2 people on newstart for a year

    • Sue Todd

      They’re trying to convince us that the proceeds of the sale won’t be included in the assets test. Yeah right, we must all have ‘stupid’ stamped on our foreheads

    • David James

      they are doing something about ordinary people rorting now but I think they need to look more at their own cabinet, when these Liberals rort it is thousands of dollar worth

    • Libbi Elliot

      I agree David , they need to start at the top and set an example and work down..did George Brandis really need that $15k bookcase that taxpayers paid for and that he will take with him when he leave Parliament? Did Joe Hockey need to pay $50k for a chef to fly to New York to cook his meals? and did Bronwyn Bishop really need that helicopter ride? and so much more

    • Trish Daley

      I think it’s time we got a PARTITION going to stop the RORTS starting with the POLITICIANS, this would have to be NATION WIDE OF COURSE.

    • Louisa Abrahams

      Yes, this will be made law in the future, but I bet politicians will be exempt. When they start setting the example, maybe they’ll get the community on side. Not before then.

    • Rosalind Battles

      Liberal Party are the biggest rorters of all and not just to survive they do it to live in luxury at taxpayers expense.

    • Lucy Richards

      The Politicians…YEP…1 – they should take a pay cut, 2 – how many houses do they own?(their own homes and investment properties) gotta do something with the excess money they earn, 3 – when they retire (too many perks) they should receive the same pension as we get-not hundreds of thousands of dollars for the rest of their lives, just because they were once a politician!-WILL they sell their homes and investment properties to fund their pension?? NOT likely!

    • Gail Lipke

      Pam Gillespie Send the refugees out to work or back. There is plenty of money for them and other countries but not we working class Australians. Funny that.

    • Dianne Beilig

      we looked into shifting off our 3 acre property with a little weatherboard house and to a normal block in town.. At the moment we would be out of pocket by thousands and still have a morgage which we do not want.The agent said people would only be buying the land. we could only afford another weatherboard which could need more work than where we presently live. so what is the point. ,

      • Jan Edwards  

        You’re so right and when we want to downsize we want less work don’t we? Besides it is dependent on what we receive for our house when we sell. Sometimes you aren’t any better off.

    • Trish Daley

      Gail Lipke, that is not the fault of the refugees, you can’t blame them for the incompetence of our POLITICIANS.

    • Anne Webber

      Agree Libbi..we need to keep saying its not an option…hopefully people will wake up at the next election and vote them out 🌸

    • Susan Wilson

      We have a vote. We might be getting older but it was our generation that protested against unjust wars, saved The Franklin river, stopped the destruction of historic areas of Sydney and Melbourne, saved rain forests, fought and saw women’s rights and pay improve. Tell these wimps proposing these changes where to go at the next electon and in the meantime pick up the phone and contact their offices.

    • Even if you downsize you are paying exhorbitant stamp duty, which has put me off downsizing..do I really need to give these blood suckers any more of my hard earned money..most definitely not… I worked it out that if we sell our home the purchaser will have to fork out a further $24,0000, then we buy a new one in a different state and have to find an extra 29,000 on top of that…makes me sick what these governments do to screw us over, then the Greens are champing at the bit to bring in death duty on our homes. I will never vote for any of the major 3 parties…

  3. Marlene Baker

    Fancy having an aversion to debt in your old age, when you are no longer earning. What happened to the ‘work and save mantra’? Guess it’s now ‘look out suckers, we’re coming for you’.

  4. Paul Clark

    Have they ever thought just how much tax current retirees have paid? Where would this country be without these massive contributions? What thanks do we get? When our health is starting to deteriorate and our life is coming towards the end, current politicians seem to want to kick us onto the scrap heap! Is this the so called ‘lucky country’? Yes, lucky if you can survive!

  5. Bea Little

    Well to all those liberals who attached me last time I mentioned this. Who’s the fool now. It’s in the liberal agenda

  6. Debbie Bryant

    I had never heard of the Productivity Commission until now. I hope I never hear from them again. They sound like public servants who are trying to justify their existence. I advise everyone not to panic or worry as this is not government policy at the moment.

    • Brian Clarke

      Exactly what they are Debbie. Self serving their own existence by giving the LNP what they want to hear.

  7. Steve Screaton

    They must lead by example. The ex P.M.s $450.000 annually until death and Ex Premier’s $110.000 annually until death has to stop now, before they start lecturing the real people who are their bosses. Now we have a Bishop. Bishop private jets across the country. There is our money for all not for a select few. Now a billion dollar’s to spend on other country’s climate change. Use these billion’s of $ for the people service’s ans pay down the debt.

    • Brian Clarke

      Seems to be a pattern here! Are there any other Bishops in Parliament? They all seem to like wasting our money!

    • Sharon Hughes

      Dig deep in your pockets you pollies and return the money you owe us for our hard work and our taxes…..we have never received anything for free….some of us have even worked three part time jobs as well as full time jobs just to have some quality of life…

    • Dawn Bruce

      Not Tony Abbott . he was a day or 2 short , gets less, BUT have you heard any one mention this in Parliament today NO screaming outburst by Labor , NO they ALL still want the goose to keep laying the golden eggs . Already upset the apple cart over B Bishop & Burke & CO, .dont want it to go any further.

    • Steve Screaton

      This will be a big item when people go to the polls for sure, but if we all are honest either or either, we need someone there who honestly think’s of the people all the time, not what we have have for years they get top job their future is safe and the they turn of us voters, really after the guernsey they do not really care

  8. Janet O

    After my husband Passed away and I retired I sold my big home and rented…. Best decision I ever made. No maintenance required and I am financially secure …. We do have plans down the track for granny flats etc with my children so I will always have security. The owners and real estate love me because I take care of their home and when something needs fixing it is just a telephone call. I always used to worry that everytime our children visited I had a job for them and this no longer happens. I have had a few lovely trips to visit my daughter overseas. ….. So for me it was a good decision. It would have been a completely different story had my husband still been here but there is a lot to be said for downsizing.

    • Debbie Bryant

      Good to hear your positive feedback. Our only problem here is the real estate market is so bad that we could not give our house away let alone sell it.

    • Claire Taylor

      Good news for you. The main problem I have with renting is that the owners can sell the house from under you and then you’re back to square 1.

    • Margaret Dodge

      my argument is why should people sell just to help a few pollies sound good .i downsized 13 years ago after my husband passed away .still got the same bills only a lot smaller so for me it was a good move .

    • Fay Biddle

      So true renting is no good if the owner sells or dies you have to move on more secure with your own home if anything needs repairing get a tradesman better than paying dead rent.

    • Chad Morgan

      Upkeep and maintenance, plus insurance and rates the bills keep coming in better off renting or moving into a secure village.

    • Fay Biddle

      Chad if you are renting in Sydney you can’t get anything decent for over 500 dollars what state are you in? Also if you save that much every week you would have over 25,000 dollars.

    • Lisa Drury Hudson

      Renting minimum $275 per week, and you still need to pay utilities.
      Home owner – home paid, rates $40^ per week and utilities yes you still have the upkeep, but it’s yours. I’m talking about Adelaide in north east suburbs. I’ll keep my home, I worked blooming hard to get it.

    • Anne Webber

      Good for you Janet, so don’t bother thinking it through on how it will affect other people 🌸

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