June 2015

The pension asset test and taper rates

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The workbook used throughout this article is available here.

The Coalition and the Greens have cut a deal to implement the Government’s proposed changes to the pension system, specifically through the “Asset Test”. After the Greens repeatedly said there was no deal. This is what makes politics interesting, apart from watching “The Killing Season” of course.
As you’ll have probably seen elsewhere, the major change is to the “taper rate,” but there are also changes to threshold levels at which the full and part pension are paid. If you want to read some neutral coverage of the deal, you can try this article from the AFR, the positive spin from the Government here, positive spin from the Greens, and Labor calling it either a dirty deal, a grubby deal or sometimes both filthy and dirty. (Political disclaimer – For the avoidance of doubt, I am not associated with any political party and seek to criticise all parties equally when the opportunity arises, such as my critique of both Labor and Liberals alike for the metadata retention regime.)

Brendan WalpoleThe pension asset test and taper rates
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