Treasurer acknowledges assets/pension dilemma
The Federal Treasurer, Joe Hockey, has acknowledged the problems confronting asset-rich, cash-poor retirees with respect to ownership of the family home, but has declined to commit the Government to a policy position on the issue.
Addressing a luncheon in Sydney, Hockey also distanced himself from ownership of the debate over first home-owners being given access to their superannuation to help fund a deposit, saying it was something which had been raised elsewhere and that he was only promoting a conversation.
But on the question of asset-rich, cash poor retirees he acknowledged the problem but avoided giving a definitive Government position on the issue.
Hockey said that that it was a particular issue in Sydney, "that there are older Australians who have the traditional family home, have a lot of capital tied up in it, but are worried that they're going to lose access to the age pension, and particularly the medical benefits and concessions that go with it".
"Should they sell and then qualify under the assets test. It's a very good question. I'll leave it at that," he said.
Dealing with questions first home buyers using their super, Hockey said the proposal "had been around for ages, so I'm bemused that it's suddenly my proposal, particularly given that it came from various real estate groups as well who actually have done some of the more considered analysis".
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
