Government aims to reduce the number of people on the pension before the election

Treasurer Scott Morrison has confirmed superannuation tax concessions will be one of the first agendas in the May budget. He has said
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Treasurer Scott Morrison has confirmed superannuation tax concessions will be one of the first agendas in the May budget. He has said super was beginning to exceed its role as a retirement savings vehicle.

This is one of the last options to fund tax cuts, other than negative gearing or a raise of the GST.

Mr Morrison used his speech to The Australian Financial Review 2016 Business Summit to reveal all of this.

He declined to confirm the budget would be held on May 10, saying only the government was working towards the scheduled date. “That is the planning that we have in place”.

A May 3 budget which would enable a double dissolution election still remains an option, reports the AFR.

At the moment, the government is working on a legislated definition of the purpose of superannuation and it will be released before or at the budget.

“The point is that any changes that we make to superannuation will be about that purpose and making it fit for that purpose. Any every change should be assessed against that purpose,” he said.

The government has ditched plans to increase the contributions rate to a person’s top marginal tax rate minus 15 per cent and has been looking at reducing the $30,000 annual concessional cap. It has modelled a $20,000 cap, reports the AFR.

Mr Morrison said the government wants to limit or abolish transition-to-retirement pensions. These crucial payments enable people of retirement age to access some of their super tax-free while still working.

“Last year we successfully legislated the first phase of our reforms to retirement incomes with our changes to the pension assets test, reversing the taper rate changes of the Howard- Costello government that had extended access to a part pension to those with assets in addition to the family home of more than $1 million,” he said.

“These changes were based on the simple principle that the pension is a welfare payment for those who are not in a position to support themselves independently in retirement.”

“After the change of leadership last September, we embarked on the second phase of reform to retirement incomes by addressing the various incentives and arrangements associated with superannuation.

“The changes will be about delivering a fairer and more sustainable retirement income system for our 21st century economy building on the pension reforms in last year’s budget.

“It’s not about revenue raising. It is not about higher taxes to fund higher spending. It’s about a better retirement incomes,” he said.

Mr Morrison said the government’s aim was to reduce the 80 per cent of people on the pension, and that the aim of superannuation was not wealth creation.

“[Superannuation] is not an estate planning tool … it’s to help people have a pool of retirement savings that they can draw down to live on,’’ he said, reports The Australian.

Tell us, do you think what the Government is proposing is fair?

 

  1. Maggie Geeves

    To some it could mean going without a meal, warmth from a heater, why do u always have to attack the most needy, go after your mates, o no perhaps they will cut you from there Christmas card list

    • Doug  

      You are missing the point Maggie – this measure seems to target those who have built up a large superannuation fund that will in fact become a large tax-free estate rather than just support in retirement. I reckon the poor will not be affected one bit by this measure.

  2. Julia Metcalfe

    It will mean nothing to me. I’m still working and, if this government has its way, I will do so until I drop dead.

    • Ged schorer  

      We should start our own party Australian seniors party

      • Doug  

        I hear what you are saying Ged and Julia. I am 69 this year, on a part pension and still working because of the GFC (you know the crisis that the then “Treasurer of the Year” apparently saved us from). It is not the requirement to work to an older age that is the problem for me, but more that my retirement fund was decimated and no government or Treasurer since has addressed that issue with us baby-boomers – we are now reliant on welfare rather than being self-funded retirees.

        • Doug  

          I don’t know who the other contenders were for Treasurer of the Year – probably Greece and Zimbabwe!

  3. Geoff Hallam

    Start with the politicians first and lets see how fair dinken they are. Come on pollies lets start with you f…..ing free loaders.

    • yep exactly, no dam politician is working for anything under $100,000. How about these guys take a pay cut

  4. Robert Hind

    Again we have highly paid, and often wealthy in their own right, people who will retire on a substantial tax-payer funded pension making decisions affecting those with much less wealth and on much lower superannuation payments.

    • Robert Hind

      Khyla Russell – My point is basically that “they” are completely out of touch with the lives of ordinary Australians.

    • Joe Carter

      I agree with let’s see how good the political members of this country get on with a basic pension fund, no more private schools for your kids shopping for the lowest price foods. You lot haven’t ever been down the hard road

    • Robert Hind

      For goodness sake Gary Davidson and @Grahame Victor Steed, that would be a totally different issue.

    • Robert Hind

      Gwen Brien – I am not deaf. Don’t shout! On what evidence do you base your statement? We have been given no detail yet.

    • Fred Davies

      Gwen Brien, when I retired I anticipated a government pension when I turn 65, I am now faced with no government pension which means my superannuation will not last. Besides compulsory superannuation I put 20% of my pay into superannuation so that I would have a comfortable retirement, I might as well of spent that money on a good time because I won’t have the chance now.

    • Robert Hansen

      Fred Davies I’m with you Fred. 51 years of paying top tax. Living away from my wife & family for 20 of those , to get told not a cent of pension. No health card Nothing

    • Andrew Stefan Cieslak

      So why are the people voting in these morons …… they don’t care about the hard workers …. just look where Turnbull hides his money and how Clive Palmer uses his “businesses” ……

    • Robert Hind

      I’ve said this before. What really annoys me is the continually shifting goal posts. You plan on the basis of present rules and then “they” change the rules. Especially for those with smaller super who also get a small part pension. To be retired and then lose that because of new rule changes is like being abused. With most of the talk on negative gearing there is a lot of “grandfathering” talk, ie the new rules will only apply from now on. This does not seem to be happening with the age pension.

    • Yvonne Jackson

      Robert Hind It also did not apply to politicians who were already in parliament when the rules were changes. It is only reprospective with the elderly.

    • Heather Peterson

      Why doesn’t Scott Morrison make the Multi Nationals pay their way and leave Pensioners alone, punish them instead. It is going to make things a lot tougher for Seniors, especially if they have Medical issues. A lot of us are not in private health as we can’t afford the payments. If they touch the pensions and super they will not get voted in they forget that there is more of us than them, and families wont be happy if they start messing with the Super either. Stefan & Robert I didn’t vote them in and I wouldn’t call those that did were morons, they were hoodwinked because they were not going to touch pensions as far as I remember. I would like to see them retire on the pensions we have to. I was actually thinking about supporting Mr Turnbull and his party but with the current Treasurer they are not getting my vote. For the pensioners who have worked hard all their lives and have a home, and are on a part pension must feel they are being punished. Another thing that has put me off is the fact that the Liberals are changing the voting forms so that we can’t say who we want in the Senate.

  5. Leanna Stephenson

    It getting to the stage where the fastest way for them to reduce those on pension would be to legislate Euthanasia and kill us. Target your rich mates and leave Pensioners alone or just do the honest thing and kill us all

    • Deborah Drinan

      This is getting scary now, not sure where it’s all going – but its sure as hell stressing a lot of us Baby Boomers.

    • Carlene Zealley

      Maybe???ensuring all the incoming ‘refugees’ had qualifications to gain some form of useful employment might reduce the ever increasing drain on welfare for their multiple wives & many offspring!!!! & leave previous hard working retired pensioners alone with a more liveable income!!!! Just saying there are LOTS of areas that need a cleanup before starting penalising AUSTRALIAN residents……

    • Tim Hodgetts

      Quite clearly it’s time. “Euthanize Turnbull before Turnbull euthanizes you.” After all we know there has never been a better time to be elderly. “Innovate Turnbull out the gate.” Don’t vote Liberal.

    • Noelene O

      The sad thing Tim Hodgetts is the pensioner bashing is universal through the major political parties. They all suck!! How they think ripping off and terrorising the people that made this country is the right thing to do is beyond me when there are so many legitimate ways to recoup money from the wealthy, businesses and just stopping welfare cheats would be a start!!

    • Bernice Curtis

      that’s my view as well. We are just a nuisance to the Libs, so why not just starve us to death!

    • Rob Bower

      I’ve uttered those same words many times Leanna, it is like a scene from the movie Logan’s Run, but in that civilisation, old age was 30….so I should have died near on 33 years ago, but I’m hanging on out of spite…

    • Chrissie Dunleavey

      Because of this they will not get a vote from me, they should start looking closer to home like Politicians pension funds!! If there is so many of us pensioners perhaps we can vote this Govt out.

    • Joan Rowe

      Carlene Zealley Really, you need to back up your claims with cited information.

    • Michael Milner

      I with you Leanna I’m sick of politicians picking on us pensioners thinking we are fair game I kid you not we are not far off from us pensioners revolting

    • Kevin James Petrofski

      NOW COME ON PEOPLE, LET’S BE FAIR. IT HASN’T BEEN ANNOUNCED YET BUT POLITICIANS ARE GOING TO HAVE THEIR PENSIONS PEGGED AT A MAXIMUM OF $ 640 PER FORTNIGHT AND JUST TWO TRIPS BY TRAIN A YEAR.

    • Lyn Pride

      if you read the article they are targetting the rich who, in the past, have put thousands of dollars into super and used it as a tax deduction.

    • Robert Hind

      Kevin James Petrofski –
      1. Stop SHOUTING please
      2. Ha bloody ha!
      3. I assume/hope you are being sarcastic.

    • Leanna Stephenson

      Lyn Pride 80% is more than those who are rich..this is the quote from the website Mr Morrison said the government’s aim was to reduce the 80 percent of people on the pension

    • Maria Poland

      Carlene Zealley sorry mate that not the answer either as we dont have the jobs for the migrants……….this is why many aussies are un-employed as their been promise employment……..we are paying the price

    • Maria Poland

      Leanna you hit the Nail on the Head……….they be happy if us aussies were 6 foot under

    • Nick Croft

      Euthanasia is not allowed because it is against their religion – however a slow and painful death through starvation or because you cannot afford medical care or medications is not only allowed but is encouraged under their religion, which is why they want to get rid of Medicare and the pharmaceutical benefits scheme.

    • Yvonne Jackson

      I think they will target those retirees with millions of assets in self managed super funds, who took advantage of the changes introduced when John Howard was P.M. They receive all income from the fund tax free. Some incomes in the hundreds of thousands of dollars. The Labor party proposed taxing them at 15% on the component of income over $75,000, but instead the Greens united with the Liberals for the changes to part pensioners, which will come into force from January 2017.

    • Dana Joubert

      gov today only care about what goes into their own pockets. They victimise the vulnerable and elderly because they are no longer of any use to them. Let’s show the politicians they are wrong and vote them out!!!

    • Rhonda Hayes  

      Absolutely right Leanna Stephenson, stop this corrupt payments to politicians available to them at any age and look after the tax payers who all their life scrimped and saved to exist not carry on like the current and previous crop of pollies. And is this true how many are going to retire at the next election so they receive an incomprehensible pension for life for what?

    • Henry Doering

      Check out how much money they’re throwing at the “refugees”… And now they want to try to get a big percentage of pensioners off the pension…how is that fair? Lefties obviously…

    • Denise Knight  

      What is wrong with taxing the big companies and corporations that are tax evasive now. Time to change the way the rich get richer and so one. The politicians need to address their own freebies before they attack anyone else.

    • Paul Crewe  

      When money is being doled out to these muslims when they come here, that is money that Australians NEVER get to see, and services that Australians never get to appreciate. So, yes, this is a very valid point!

  6. Ron Whalan

    It wouldn’t mean a great deal, it will only effect those that have significant super funds stashed away and those that have excess disposable income to use to top up their super. I think the bulk of aged pensioners do not fall into this category, I know I do not!

  7. Libbi Elliot

    Pensioners are living below the poverty level now, if they take anymore off us, we won’t be eating, we don’t eat extravagantly now. Target the rich instead of rewarding them, Morrison is a man without morals

    • Libbi Elliot

      me either Lee, he is trying to run pensioners like he ran those prison Islands.. that will be next we will all be packing and forced to go there

    • Colin Fitton  

      Yes… Start with the Parliament, see how many vote that in for their pensions…..they just voted themselves a rise in theirs, after cutting into OAP…..WHERE ARE THESE SO CALLED POLITICIANS COMING FROM…..THEY WILL BE GETTING US TO BUILD PYRAMIDS FOR THEM SOON…..

  8. David James

    For Heaven sake !! what bloody next? I feel like we are all trapped in a nightmare and there is no way out

    • Deborah Drinan

      Hopefully getting rid of these idiots in power now might give us a break. How about they start targeting the dole bludgers not us Baby Boomers, so over it now

  9. Tim Hodgetts

    Turnbull flip flopped on finances and tax reform for so long that the only alternative the Liberal Party was left with was hit up their mates or an elderly tax. Guess who won? Surprise, surprise the “elderly tax.” Bring on that early election. It’s time to kick some Liberal backside.

  10. Annette Elliott

    What I am reading is that it will affect Superannuation if you are still working.
    I think we need clarification.

    • Robert Hind

      The (whole) post is delightfully unspecific, which is what I have come to expect from this gov’t. We will have to wait for the budget for the detail.

    • Annette Elliott

      It is very vague but believe previously (and I may be wrong) that it was to stop people hiding money in Superannuation so when they draw on it no tax payments ie using as a bank account. Money withdrawn before they retire. I know it is their money and worked for it but the money is now hidden again and claim full or part pension

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