Let’s Talk: Would you like to see the Age Pension turned into a loan?

The Australian Chamber of Commerce and Industry has urged the government to dramatically overhaul our Age Pension. The ACCI proposes that changing
Australia

The Australian Chamber of Commerce and Industry has urged the government to dramatically overhaul our Age Pension. The ACCI proposes that changing our pension into a home loan could curb national spending, and protect older Australians.

According to the ACCCI, morphing the Age Pension into a loan could help the government recoup its expenditure when pensioners’ homes are eventually sold.

The ACCI claims this unusual solution could “guarantee that pensioners can remain in their homes, and still save (the government) billions of dollars from spending”.

Public spending needs to be “brought under control”, the ACCI added. Otherwise, “the Australian economy will gradually be crippled by increasing taxes and growing public debt, both of which are unsustainable”.

“If Australia waits until the system­ breaks, we will consign the next generation to painful re­adjustments similar to those taking place in southern Europe“, the ACCI’s chief executive said.

Kate Carnell also said the government needs to consider widespread economic reforms before its next Federal Budget. Changes to workplace relations, infrastructure, trade and education all need to be made, she claims.

Ms Carnell added that “doing nothing is not an option”, especially when it comes to Australia’s aged pensioners.

Would you be willing to treat your Aged Pension as a loan? Or do you want the government to keep its hands off your family home?

Share your thoughts on this controversial plan below:

  1. For Gods sake,,we worked and saved all our life to get our own Home,,,paid high taxes too,,,,interest rates were very high when we grew up, 18 percent,,, And why pick on us,,, why aren’t you getting rates from churches, tax from Apple and Google etc,,,,,,,

  2. For Gods sake,,we worked and saved all our life to get our own Home,,,paid high taxes too,,,,interest rates were very high when we grew up, 18 percent,,, And why pick on us,,, why aren’t you getting rates from churches, tax from Apple and Google etc,,,,,,,

  3. John  

    In other words those thatthose of us that saved our money and bought a home will be paying for those that didn’t save and live in a rental

    • Margaret  

      Not everyone who lives in a rental are there because they didn’t save. That is a stupid remark to make.

  4. I dont own a house. I think this is a terrible idea. People have worked hard for their house and should be entitiled to an Age Pension when they reach a certain age. Hands off the Age Pension. Vote them out this year.

    • It’s not a Government plan, it’s an idea, however stupid, put forward by the ACCI. It’s totally impractical as not every pensioner owns a home.

    • Rosemary Miles You are right. But I find it a worry that supposedly intelligent people can make a suggestion like this. I wonder if they have a quota where they have to submit x number of ideas a month? I can really think of no other explanation for this silly, impractical suggestion.

    • I don’t think anyone here can deny they are looking for ways to cut the pension, you would have to be deaf dumb and blind not to have seen all the pension issues played out on the news and Turnbull said all cards are on the table. I would not get to complacent with this and dismiss it

  5. I dont own a house. I think this is a terrible idea. People have worked hard for their house and should be entitiled to an Age Pension when they reach a certain age. Hands off the Age Pension. Vote them out this year.

    • It’s not a Government plan, it’s an idea, however stupid, put forward by the ACCI. It’s totally impractical as not every pensioner owns a home.

    • Rosemary Miles You are right. But I find it a worry that supposedly intelligent people can make a suggestion like this. I wonder if they have a quota where they have to submit x number of ideas a month? I can really think of no other explanation for this silly, impractical suggestion.

    • I don’t think anyone here can deny they are looking for ways to cut the pension, you would have to be deaf dumb and blind not to have seen all the pension issues played out on the news and Turnbull said all cards are on the table. I would not get to complacent with this and dismiss it

    • Debbie Bryant I think sometimes these “ideas” come from Monday morning round the water cooler!

    • Libbi Elliot and how are they gong to recoup the pension from those who don’t own a home or property? Whatever else comes up in the future – this sounds like the most hair brained one that has been flung around for a while.

    • I do own my own place after years of my husband and I working hard and long hours for it. We paid our taxes like everyone else to be able to have the age pension. Being self employed we paid what we could into our own super fund. They, who ever they are, are getting too greedy. Leave the Age Pension alone !!

    • Rosemary Miles I guess from your kids. Meanwhile their kids inherit millions.
      I wonder is there a prize for the dumbest suggestion of the month?

    • There’s an old truism – you can’t get blood from a stone. I wouldn’t get your knickers in a knot just yet over this one.

    • Well I worked hard for my house too but I must have worked too hard and have no pension entitlement so I like your idea that everyone gets a pension.

    • Patricia Verhoef lol Polies won’t touch their own pensions or even take a wage cut, Turnbull just a $10 thousand a year pay rise, they will make themselves well exempt from any pain

    • Sue Todd I don’t own a home and my kids aren’t legally responsible for any debts I incur so, once again, how are they going to recoup from those with bugger all?

    • Really? Shame on you ACCI. You screw us pensioners over every chance you get! Most of us still vote & I will NOT be voting for LIBS-LABS or Greens! I hope you all get your just deserts? It’s time!! Bloody traitors!😡

    • If you don’t own a home Rosemary Miles then you are not in the same position as pensioners who do, pensioners are struggling now to pay the bills without having to borrow to do it. I agree hands off our pension and vote them out

    • Those of us who do own a home will have nothing to leave our children if the pension is tied to a home loan. This, in effect would mean that the modest home we scrimped and saved for will no longer be ours. No thanks! This is a terrible idea, and just one more example of the prevailing opinion that we are of no value, despite all we have done for this country. In many other countries, senior citizens are treated with respect, and gratitude for their contribution to society. We were treated with some respect until Joe Hockey started his campaign against us

      • Diana  

        Well said Maureen – totally agree. We paid taxes and very high interest rates on our homes, we have earned the right to keep them. Look at making taxes fairer, not just constantly penalising those who can least afford it!

      • Patricia Fraser  

        Totally agree Maureen, we are treated like second class citizens. No way should we take this (if it is ever put forward in Parliament.) We are a force to be reckoned with …… voting power.

    • David James the point I’m making is that this “idea” is totally impractical because not every pensioner owns property. If it can’t be applied across the board, how useful is it? You can’t “lend” a pension to some and not to others. Too many people going off the deep end unnecessarily.

    • Rosemary Miles if they have to pay those renting they won’t mind because home owners will be the bulk of pensioners they will save millions every year and the longer home owners are alive the less inheritance their kids will get

    • Joe Rudzyn there are many parties and Independents to choose from Micael doesn’t have to vote ALP he could vote for a variety of electoral options

    • Maureen Hogan Another factor that they obviously have not thought about is the fact that we will need to sell our homes to fund our way into aged care. Any way you look at it not much thought has gone into this suggestion. You have to wonder about the calibre of the people making these silly suggestions.

    • So if you mortgage your home to give you a pension..who pays the mortgage back..or do you have to die first ..and if you spend it all before you die you no longer have a home to live in..yeah brilliant idea!!!!

      • How is it going to work for those that have a very modest home or unit. Will their pension be minimal in comparison to those with larger more expensive homes
        Will it be based on resale value based on area you reside . This idea is stupid. Unfair and cruel for honest hard working Australians
        And what happens when the pension payments reach the mortgage value if you live well into old age. Do we then end up on the street

  6. I have paid taxes for over 50 years with the understanding that I would get the pension when I retire. Now they want it to be a loan. We struggled to pay off our homes so our kids would get something when we died and now they want to deny our families and benefit of our hard work because they couldn’t manage the money they took in taxes from us. Very poor form any government, to put this forward.

    • Mia VanDerStam  

      Everybody should write to their local members, or better still, the prime minister. If the good do nothing- the bad will succeed

  7. I have paid taxes for over 50 years with the understanding that I would get the pension when I retire. Now they want it to be a loan. We struggled to pay off our homes so our kids would get something when we died and now they want to deny our families and benefit of our hard work because they couldn’t manage the money they took in taxes from us. Very poor form any government, to put this forward.

  8. Well, we can’t take it with us…. I like the idea of not costing anything to any one, so if society has to pay to keep me in old age, I don’t have a problem to give back to society when I am gone.

    • Really so why should we pay taxes then. Those with homes have worked hard to pay their homes off .Our homes belong to us not the government that is most aged people have .Why should our children not have something after we have gone .The privilege will be okay .

    • I can’t take it with me but I can leave it to my children…can you tell me what would happen to those who don’t own a house? Do they just starve?

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