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Budget pension changes announced

Plans to change the way in which pensions are indexed have been dumped and replaced by a proposal which will see wealthier pensioners lose their pensions.

As noted by YourLifeChoices on Tuesday, the asset thresholds will be lowered and the pension taper rate changed. Announced by Social Services Minister Scott Morrison yesterday, the key points are as follows:

 

The result of the changes is that:

 

Those who have been affected by the scaling back of the maximum asset threshold ($1.15 million to $823,000) will be guaranteed eligibility for the Commonwealth Seniors Health Card (CSHC) or a Health Care Card (HCC).

If this legislation is passed, the changes will take effect from 1 January 2017.

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