Now theres a lesson in cynicism: the Fed budget allows retirees to downsize by letting each (if a couple) contribute up to $300k of their house sale proceeds into their super fund tax free. Its a no brainer for the government: pay c$35k pa pension (couple) or forgo zero tax (assuming 5% return on $600,000 = $30,000 which, split two ways, attracts zero tax) with no pension payments! (this assumes, of course, that the couple had insufficient super to be over the asset test, but sufficient, when added to $600k, to be well over it.)
