1 Mar 2016
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Update- Social Security treatment of principal home
In 2013-14 an estimated $39.5 billion was spent on the Age Pension benefiting around 2.4 million recipients.
Modeling by the Australian Government National Commission of Audit shows that the proportion of older Australians eligible for the Age Pension will remain constant at 80% over the next 40 years with only 20% of eligible individuals being completely self-sufficient and not reliant on the Age Pension.
Remember, the Age Pension was introduced in 1909 with the qualification age being 65 while male life expectancy was age 55 and in 2009 the Commonwealth finally scheduled the age of access to rise from 65 to 67 by 2023.
So how does Australia fund the 80% of individuals qualifying for a full or part Age Pension going forward?
One potential candidate is the primary residence and so we thought you may like to refresh yourself with the current social security treatment of the principal home.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.