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Rumoured LNP changes - to encourage dwelling downsizing. The effects?

Discussion in 'General Property Chat' started by aushousingcrash, 25th Jan, 2016.

  1. aushousingcrash

    aushousingcrash Active Member

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    I've read of strategy that is being strongly pondered by Scott Morrison to reduce the currently massive disincentive for retirees to downsize their family homes.

    The plan is to reward those who downsize their home by allowing them to buy a lifetime annuity with the cash proceeds freed up, and for that annuity to be exempt from the Aged Pension Assets/Income test assessments. There is no net tax change for the government here due to CGT free status of famiy home anyway. There is hundreds of billions of equity to be unlocked here.

    The only cloud, and perhaps just as big of a roadblock, is the stamp duty issue, that the states will need to think of a plan (such as capping SD, or applying a SD tax free threshold for these pensioners.

    Benefits
    *Frees up land rich, underutilised homes.
    *Frees up large home for a family with kids, or site redevelopment into a higher level of density.
    *The annuity income stream, and newly found spending power of this pensioner class will boost economic activity throughout the country (Really great for the rural areas)

    This would be a great first step, Mr Morrison.
     
    MattA, Tyler Durden and Terry_w like this.
  2. Biz

    Biz Well-Known Member

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    Don't take this the wrong way but are you some kind of political party mole using us as a sounding board? Just your name and the other thread you started has me suspicious.
     
    Big Will, Ambit, Rugrat and 6 others like this.
  3. Chilliblue

    Chilliblue Well-Known Member

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    Registered 17th January with a total 5 posts. 4 on LNG

    Could be right @Biz
     
    Last edited: 26th Jan, 2016
  4. Rooky

    Rooky Well-Known Member

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    Fully agree with your view.

    I felt same doubt when i read first post about changes in negative gearing but this post has confirmed it.
     
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  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Maybe its Scott Morisson? :p
     
  6. aushousingcrash

    aushousingcrash Active Member

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    I confirm no affiliation with any political party, just trying to get some good property market game changer conversation started, where it has not been discussed before (here) Read my 5+ year tweet history if you have any doubts.
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    With that plan, the real estate agents and financial planners will be licking their lips.
     
    legallyblonde likes this.
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Annuity - who's offering it, backing it, risk level, rate of return, what's it invested in (CMBS or some 5th tier lender on dodgy residential loans wrapped up to smell a bit less)?
     
  9. Bullion Baron

    Bullion Baron Well-Known Member

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    Why should it be exempt from an asset/income assessment for the pension? Like a PPOR I think it should be included or otherwise any pension paid clawed back from the estate...
     
    Waldo likes this.
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    ...and for those with no estate?
     
  11. Bullion Baron

    Bullion Baron Well-Known Member

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    The pension should be a safety net only for those who need it, if they have no estate then presumably the pension was needed.
     
  12. THX

    THX Well-Known Member

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    I believe they have been posting all over the web for years taking an anti-investor stance, belief in a property bubble, supports a land tax, supports abolition of NG and that investors cause inequality, is part of or supports the group at Prosper Australia - Access → Opportunity → Prosperity.

    Probably gen y.
     
  13. D.T.

    D.T. Adelaide Property Manager Business Member

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    Completely agree with you. The main issue here is that the dumb voting public wouldn't swallow the ppor being included in the assets test.

    Downsizing is the obvious choice. Unfortunately need some incentive or penalty to steer people in that direction.
     
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  14. sash

    sash Well-Known Member

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    The question is would you TRUST Scott Morrison....that is the real question??

    Great idea would support it...but if this was implemented...he would want to claw back some of the money to fill the budget hole.

    The real issue is the credibility of uncle Scott....if I shook his hands..I would be counting the number of digits on my hand....

     
    Rugrat, Esel and Leo2413 like this.
  15. Chilliblue

    Chilliblue Well-Known Member

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    Prefer if they got rid of the Federal senate and all the costs associated with it running. Should save some $$$.

    Take this further, cut the number of MPs down and a few extra $$$ saved.
     
    THX likes this.
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Think of all those redundancy payments.
     
  17. Ed Barton

    Ed Barton Well-Known Member

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    The senate's important in 'keeping the bastards honest' and in the scheme of things wouldn't save much at all.
     
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  18. Chilliblue

    Chilliblue Well-Known Member

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    Not worked to day very well.

    76 senators at $200,000 pa plus superannuation's and benefits and the extra $$ for senate hearings is a great start.

    The average senator employs 5-6 staff members and need expenses covered such as rental for an office, accommodation, travel etc.
     
    D.T. likes this.
  19. See Change

    See Change Timing Lord Premium Member

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    Now days it's seems like role reversal and it's

    " Keep the bastards in the Senate Honest ".....

    Cliff