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Showing posts from May, 2015

So who loses nearly $10,000 pa under the proposed new pension rules?

The Federal Government is tightening the age pension assets test. The Government has estimated that 91,000 pensioners will completely lose their entitlement and a far greater number of age pensioners - nearly 250,000 - will receive significantly less. While a smaller number of age pensioners will receive a modest increase. So let’s have a quick look at how much the majority of pensioners will lose. The following table is a very basic analysis of the implications. The table is for a home owning couple who have the following level of assets. For demonstration purposes we will assume they have no other assessable income or assets. It has been proposed by the Government that the pension asset thresholds - or cut-off-points - are to be adjusted. Age pensioners who have assets of less than $286,500 - the current ‘lower’ threshold - will have unchanged benefits as a result of this change. Age pensioners who have assets of value up to the new threshold - $375,000 -may receive