Wealthier pensioners are in the Federal Government’s sights.
A tougher assets test is under consideration.
It could see 200,000 people cut off, from even a part-pension.
Carla Howarth reports.
Wealthy retirees may soon be facing stricter assets testing.
The changes mean couples will lose the part-pension when their assets reach about $820,000, not including the family home.
Single pensioners will lose access at about $550,000.
Scott Morrison, Social Services Minister: “The pension is not a reward. It is a safety net for people in their retirement to ensure that they have a basic support for their living costs.”
Under the current system, couples with assets of up to $1.15 million still qualify for the part-pension.
The annual pension bill is now sitting at $42 billion a year.
The new assets testing would save more than $1 billion dollars a year.
But the Opposition’s not buying it.
Bill Shorten, Opposition Leader: “In the last budget, they cut the pensions of over 2 million age pensioners. And they’re at it again.”
The Federal Government’s second budget will be brought down next Tuesday.
Carla Howarth QUT News.