With the current interest rates on term deposits, I believe that Govt. should temporarily abandon the deeming rules. At least until the deeming rate of return, is a couple of percent above what a couple get on a govt pension.
A couple who are risk averse and have mainly term deposits or cash instruments and some super with financial assets equating to a million dollars, are earning on par to a pensioner couple under the previous deeming rules. Now with the current deeming rule announced recently, they could be worse off then a couple on the govt pension.
There are many couples who are on the bottom rung of being so called "wealthy". Living in crappy suburbs and not driving luxury cars or having luxury toys etc - are going to be punished, due to them being frugal.
Hopefully, govt pensioner couple and recipients of part govt pension start supporting people who are recipient of the CSHC, as these couples could be worse off then a pensioner couple.
Otherwise, the only other option if there is no support, there maybe a push by the "LOWER RUNG WEALTHY" to count the HOME as part of asset deeming rule.
Isn't that what ACOSS wants?
I've heard the recent emotive arguments mentioned in the media, against including the home in the deeming rule.
Many elderly people, previously have been forced out of theirs homes, by rates increases or property re-zoning. Why not being forced out by the new deeming rules!
My personal opinion, is that everyone should get the pension and then make the necessary tax adjustment at tax time. At least this will eliminate the uncertainty of income when not receiving the govt. pension.
In England, even Prince Charles get a govt pension, why shouldn't I?
