MORE than 170,000 pensioners will get about $30 a fortnight extra in their banks under the federal government’s new plan.

The changes will help retirees with a modest amount of assets while taking the pension away from those who are much wealthier, Social Services Minister Scott Morrison says.

The minister confirmed reports by News Corp that changes would be made to the amount of assets someone can hold before they start losing their pension and the rate at which the payment drops.

He said nine in 10 pensioners and Australians getting pension-linked payments would either be better off or see no change.

“We’re helping those with more modest assets,” Mr Morrison told the Nine Network on Thursday, ahead of an expected formal announcement.

All couples who own their home and have additional assets worth less than $451,500 will be better off.

Couples who don’t own property and hold assets worth up to $699,000 will also win from the changes.

The new system would come into effect from January 2017, meeting the government’s promise not to change pensions before the next federal election, due in late 2016.

More than 91,000 people on the part-pension would lose that benefit under the changes.

But Mr Morrison said they would still get the Commonwealth Seniors Health Card, which gives them concessions on medicines and bulk-billing.

Plans to change the pension indexation rate, announced in last year’s budget, have been dumped.

Mr Morrison expects the Greens to support the changes, ensuring their passage through parliament.

Older Australians say the new plan is much more sensible.

“This is a better place to start looking at any pension changes, but the proposal still needs to be scrutinised as part of a broader retirement incomes review,” Council on the Aging chief executive Ian Yates said in a statement on Thursday.

PLANNED CHANGES TO THE AGE PENSION FROM JANUARY 2017

WHO’S AFFECTED

* 3,534,807 pensioners will see no change

* 171,658 will get more money

* 91,378 will lose the part-pension

* 235,756 will get less money

ASSETS TEST FREE AREAS

* Single homeowner $250,000 (previously $202,000)

* Single non-homeowner $450,000 ($348,500)

* Couple homeowners $375,000 ($286,500)

* Couple non-homeowners $575,000 ($433,000)

ASSETS TEST CUT-OUT

* Single homeowner $547,000 ($775,000)

* Single non-homeowner $747,000 ($922,000)

* Couple homeowners $823,000 ($1.15 million)

* Couple non-homeowners $1.023 million ($1.298 million).

TAPER RATE (by how much the pension is reduced)

* Increases from $1.50 to $3 per $1000 of assets over the test-free threshold.

(Source: Social Services Minister Scott Morrison)

Source:news.com.au

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