This policy does not factor in income tax.
Under the proposed changes of the 'Let Pensioners Work' campaign, National Seniors Australia chief advocate Ian Henschke said changes to the age pension income test would be the 'opposite of a burden' on the upcoming budget.
“If older aged pensioners work more, they pay more in income tax, so they go from being a financial liability in the government’s eyes to a revenue producing asset,” Mr Henschke said.
“In Australia only 2.9% of aged pensioners work compared to 24.8% in New Zealand, which allows older people to work regardless of whether they receive the pension or not.”
Push for more suitable housing for ‘downsizers’
National Seniors Australia also wants a bigger push for more suitable housing with older Australians seeking to downsize.
Recently the Senate passed legislation outlined in Federal Budget for 2021, lowering the age of the threshold for super downsizer scheme from 65 to 60.
In its budget submission, National Seniors Australia outlines older people should be granted an exemption from the assets test for excess sale proceeds of their home to encourage them to downsize into more suitable housing.
“Pensioners who stay in larger homes no longer suitable to them have a higher risk of injury or are forced prematurely into residential aged care,” Mr Henschke said.
“If the barrier of impacting their age pension was removed, more older Australians would downsize, improving their mental and physical health and taking pressure off the residential aged care sector.”
Helping younger generations break through housing market barriers
With young Australians struggling to enter the property market, National Seniors Australia proposes an increase to pension gifting limits.
National Seniors Australia notes under gifting regulations, income or assets given away may still count towards the income and assets tests, with the limit someone can gift being $10,000 per financial year.
The gifting limit of $10,000 was set in July 2002, yet National Seniors Australia says housing prices have risen on average 8.6% per annum from 2002 to 2020 and inflation has increased on average by 2.7% per annum.
National Seniors Australia proposed moving the limit to more than $16,000 in 2022.
Green energy a new investment for seniors
In its budget submission, National Seniors Australia proposed the development of 'Clean Energy Bonds' to enable older Australians to invest safely in green infrastructure projects.
National Seniors Australia recommends the Clean Energy Bonds be guaranteed in the same way bank deposits are, giving seniors a safe savings option to invest in clean energy projects with returns paid to investors fortnightly through Centrelink.
Clean Energy Bonds are designed to be cost neutral - by pooling investment through the Future Fund, the government will be able to deliver modest returns to older investors while also generating capital to invest in large-scale projects
National Seniors Australia notes 85% of older people accept climate change is occurring, with a majority wanting to leave a greener future for their children and grandchildren.
Further, more than 60% of older Australians have already invested in one or more renewable energy products or projects.
Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.74% p.a. | 6.76% p.a. | $3,240 | Principal & Interest | Variable | $null | $230 | 70% |
| Promoted | Disclosure | |||||||||||
6.99% p.a. | 7.04% p.a. | $3,323 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure | |||||||||||||
7.44% p.a. | 7.49% p.a. | $3,476 | Principal & Interest | Variable | $395 | $null | 60% | ||||||||||||||
7.49% p.a. | 7.54% p.a. | $3,493 | Principal & Interest | Variable | $0 | $221 | 80% | Disclosure | |||||||||||||
7.00% p.a. | 7.41% p.a. | $3,327 | Principal & Interest | Variable | $30 | $825 | 80% | ||||||||||||||
6.84% p.a. | – | $3,273 | Principal & Interest | Variable | $0 | $995 | 80% | ||||||||||||||
7.24% p.a. | 7.26% p.a. | $3,407 | Principal & Interest | Variable | $0 | $230 | 80% |
| Promoted | Disclosure |
Image by Andrea Piacquadio via Pexels
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
