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Family home won’t be added to pension test – Published 17 February 2015

Pension Test

The government has responded to media reports it is possibly considering including the family home in the pension assets test.

he family home will not be included in the pension assets test, says Social Services Minister Scott Morrison. A story in today’s The Australian Financial Review said that the federal government is canvassing the prospect of including the family home in the pension assets test, but Morrison refuted the story on ABC radio. “There is no plan, under no consideration,” he said. “We’re working through the challenges of an ageing population but I don’t think going out there with a stick to pensioners is the way to do that.”

Labor frontbencher Tanya Plibersek said having a valuable home does not make retirees wealthy.”I know a lot of people who would have bought their home 50 years ago and of course it’s increased dramatically in value,” she told ABC radio. “You can’t eat your family home, you can’t pay your electricity bill with it.”

A National Centre of Social and Economic Modelling study has found multi-millionaire retirees are reportedly receiving up to $500 million a year in federal government handouts. About 260,000 Australian households have a net worth of more than $3 million but are receiving $800 million a year in welfare payments and more than $6 billion a year in benefits such as healthcare and education services, reports The Australian.

Source: The Real Estate Conversation Feb 17, 2015

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