Changes for retirees under the new Labor government

The new Labor government will introduce changes that will impact lives of all retirees.
Information introduced today is based on details announced during the election campaign and they are proposals at this point in time, and legislation will need to be passed for those measures to take effect.

However, considering that the opposition has been supporting those proposals, or they had a very similar version of those proposals, it is expected that most of them will be introduced from 1st July 2022.

Freezing of Deeming Rates
The proposal of freezing deeming rates for a period of 2 years until 2024 is most welcomed and very positive for all retirees. And now with such volatility of the market and super or pension funds providing negative returns, so the balance of super or income streams might have reduced, many more retirees might be eligible for Age Pension. This is worth checking, and if unsure, you need to speak to a specialist retirement planner to see if there is any chance for you to be eligible for part Age Pension or to increase your exiting entitlement.

Increasing eligibility for the CSHC
The new government also wants to relax the eligibility for the Commonwealth Seniors Health Card, which if legislated will allow an extra 50,000 Australians aged 67 or older to gain access to this valuable card. I have already created a separate article explaining the full range of benefits of the Commonwealth Seniors Health Card: Centrelink Concession Cards for your Retirement, so feel free to read it. The CSHC is the card for self-funded retirees who are not eligible for the Age Pension and for the

Pensioner HealthCare Card.
Extending the exemption on home sale proceeds Currently when you sell your family home, the rules are that Centrelink will exempt from the Assets Test the portion of funds that you indent to use to purchase or build a new primary residence. That exemption is for the period of 12 months.
But there is a proposal to extend the 12 months up to 24 months, giving pensioners more room for those big changes as home downsizing. The proposed commencement of this exemption is 1st January 2023.

Cutting the cost of prescription medicine
Given that older people are more likely to use more medication that young people, obtaining medication that is included in the Pharmaceutical Benefits Scheme is very beneficial, as cost of such medicine has been significantly reduced.
Currently the cost of drugs under the PBS is caped at $42.50. The Coalition promised to reduce it down to $32.50, while Labor promised to reduce it down to $30.00 per prescription filled.

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