Phone: (03) 9563 4688

Email: office@aubreypaton.com.au

Address: 17D Chester Street, Oakleigh VIC 3166

Latest Accounting News
Hot Issues
300,000 SMEs utilising $20K write-off, says ATO
‘A bad thing times 10’: ATO set for new SMSF blitz
Capital Gains and Renounceable Rights
Paperwork bungles lead to $38k in payments
Australian Dietary Guidelines and healthy eating chart (PDF)
Former director liable for company’s unpaid tax liabilities
Resources on our site to help you, your family and your friends.
Super for housing measures enter Senate
No Special Circumstances to allow Excess Super Contributions
Housing tax measures progress to Parliament
AirBnb – wrong tax outcome?
Are young investors wasting their youth?
ATO sending 'more letters than ever' on income tax errors
Powerful Budgeting, cash flow and Super Tools available on our site.
Property, unit trusts in ATO's sights
Australian Dietary Guidelines and healthy eating chart (PDF)
Major Bank Levy Passed
NSW tops list as ATO reveals billions in lost super
Australia's leading causes of death - ABS
How is your super going, ready for retirement?
ATO increasing data exchange with international regulators
Illegal SMSF early access scheme leads to $6,000 fine
Our 'hardest' SMSF tasks
Uber drivers hit for 10% tax
Lack of literacy promotes unrealistic goals
Taxpayer failed to prove that payments were “loans”
New STP dates confirmed as ATO goes on compliance blitz
ATO flags compliance project for FY17/18
Articles archive
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 2 April - June 2006
Quarter 1 January - March 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 of 2016
Articles
Reminder – Salary and Wages PAYG Shortfall
$20,000 Asset Write Off Reminder
Danger for buyers of Australian property of $2 million plus
Budget 2016-17
FBT Time
Fringe Benefits Tax – Company Holiday Home
Fringe Benefits Tax – Nil
Estate Planning - early inheritance
ATO issues SMSF tax warning
ATO seeks to dispel LRBA panic
Financial tools your family and friends can use.
$20,000 Asset Write Off Reminder
Tax office issues warning on imminent rule change
Age Pension means-test prevents rational decision-making
Locking Up Bank Accounts
ATO figures show property investors missing out on tax breaks
Age Pension means-test prevents rational decision-making

 

Rules exempting the family home from the Age Pension means test are preventing retirees from make rational housing decision, the Actuaries Institute believes.



     


The institute's green paper, ‘Unlocking Housing Wealth — options to meet retirement needs', reported that Australian retirees had the second lowest income levels of OECD countries.


Speaking to Money Management, Catherine Nance, the convenor of the Actuaries Institute's working group who published the green paper, called on the Government to break down barriers preventing people from accessing equity from their homes in retirement.


"The major stop on them making decisions is the Age Pension means test, because the house being the only exempt asset, if you want to sell it and go into a smaller place or an independent living unit, or if you want to access it through a financial product like a reverse mortgage, anything you release from your home potentially gets caught up in the Age Pension means test and can reduce the Age Pension you're getting," she said.


"We felt there was a case to be made for saying rather than just forcing people to stay in their homes beyond the time when it's appropriate, why don't we allow a partial protection up to a certain limit from the Age Pension means testing for amounts accessed by older people when they sell down or access equity through their house?"


Nance also suggested that a "first time buyers" style exemption from stamp duty would also encourage retirees to access equity from their homes, and give them "a better quality of life".


"At that point in age a lot of people don't want to just pay $30,000 to the state government in stamp duty, which is like a dead tax, simply to move to a slightly smaller house, so we feel there is a case for looking at stamp duty relief for older people," she said.


Homesafe Solutions managing director, Peter Szabo, welcomed the Actuaries Institute papers, describing the issues as the "elephant in the room".


"The family home is quite literally the elephant in the room and government can no longer ignore the issue with Australia having the highest proportion of home ownership amongst seniors in the developed world," he said.


"Assisting senior Australians to address the very real challenges of funding their lives in retirement needs to be acknowledged as a priority and decision makers must support options to allow retirees access to the equity in their homes."


 


by Nicholas O'Donoghue
17 March 2016
moneymanagement.com.au




9th-April-2016