May 2016 Federal Budget
The budget last night has left me somewhat perplexed; as they have attacked super when the Australian Government cannot afford to pay Centrelink (Aged Pension) benefits for too many years, with the baby boomers starting to retire.
Statistically the current taxpayer vs aged pensioner ratio is about 75%/25%, but once the baby boomers retire that will reverse and the ratio will become 40%/60%. This means that in about 12 years time, 40% of the population will have to fund the retirement (aged pension benefits) for 60% of the population.
Therefore, the changes to aged pension limits (commencing in January 2017) are unfeasible, marking the beginning of the government’s backward step to supporting Australians Retiring at age 67. NOTE: that from 2017 the new aged pension entry date will be 67 but I can foresee that this will rise to 70 over the next 10 years.
I am also disappointed with other measures they have implemented (or will from 1/7/16) as per my table below:
Changes from 1/7/2016
Further tax concession changes from 1/7/17 (in the future) are:
Changes from 1/7/2017
If you would to read more, please click the link, but don’t forget this is just what the government would like to do, they have to get it through the senate before it is law!