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You can find the current article at its original source at http://www.theguardian.com/world/2014/may/01/commission-of-audit-aged-pension-should-be-more-tightly-means-tested
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Commission of Audit: aged pension should be more tightly means tested | Commission of Audit: aged pension should be more tightly means tested |
| (about 2 hours later) | |
| Aged | Aged |
| pensions should be more tightly means tested, including the family home in some | pensions should be more tightly means tested, including the family home in some |
| cases, the eligibility age should be linked to life expectancy and new | cases, the eligibility age should be linked to life expectancy and new |
| indexation should be implemented to ensure it rises more slowly, according to | indexation should be implemented to ensure it rises more slowly, according to |
| recommendations in the Commission of Audit. | recommendations in the Commission of Audit. |
| This | This |
| would lead to eligibility for the pension rising to 70 in 2053, with new means | would lead to eligibility for the pension rising to 70 in 2053, with new means |
| testing applying to recipients in 2027-28 and the worth of the family home | testing applying to recipients in 2027-28 and the worth of the family home |
| considered in the test on a value over $750,000 for a couple and $500,000 for | considered in the test on a value over $750,000 for a couple and $500,000 for |
| singles in today’s dollars. | singles in today’s dollars. |
| After the report was released government sources ruled out including the family home in the means test. | |
| The | The |
| pension income test now means a single person with $47,000 in annual income | pension income test now means a single person with $47,000 in annual income |
| receives some pension. Changing the income withdrawal rate from 50% to 75% | receives some pension. Changing the income withdrawal rate from 50% to 75% |
| would reduce the income allowed to $32,700. | would reduce the income allowed to $32,700. |
| The | The |
| commission has recommended the pension should be better targeted to ensure it | commission has recommended the pension should be better targeted to ensure it |
| is regarded “primarily as a social safety net”. Currently, the pension is | is regarded “primarily as a social safety net”. Currently, the pension is |
| increasing in real terms and also relative to wages earned by those in paid | increasing in real terms and also relative to wages earned by those in paid |
| employment. | employment. |
| The | The |
| pension is now 27.7% of male total average weekly earnings and the commission | pension is now 27.7% of male total average weekly earnings and the commission |
| described this as “an anachronism” due to the increased workforce participation | described this as “an anachronism” due to the increased workforce participation |
| of women. | of women. |
| It | It |
| has called for the amount to be linked to the lower average weekly earnings, | has called for the amount to be linked to the lower average weekly earnings, |
| which is lower because it takes in the female wage, but at a rate of 28%. | which is lower because it takes in the female wage, but at a rate of 28%. |
| The | The |
| commission has also proposed tighter testing on the commonwealth seniors health | commission has also proposed tighter testing on the commonwealth seniors health |
| card by adding deemed income from tax-free superannuation to the income test. | card by adding deemed income from tax-free superannuation to the income test. |
| It | It |
| has also backed calls to extend the preservation age (now 55 years and changing | has also backed calls to extend the preservation age (now 55 years and changing |
| to 60) to 62 by 2027 and then tie the | to 60) to 62 by 2027 and then tie the |
| superannuation preservation age (at which you can access super) to five years | superannuation preservation age (at which you can access super) to five years |
| below the aged pension. | below the aged pension. |