英语论文网

ly it is a value judgment as to whether the currentmaximum rate for the Age Pension is set at the correct level.Questions of government budget affordability are also involved.Although it prevents outright poverty for the vast bulk ofretirees, the Age Pension provides a retirement lifestyle that isconsiderably more modest than that to which most Australianscurrently in employment would reasonably aspire.However, increasing the base amount of the Age Pensionand/or abolishing the means test for its receipt would involveconsiderable additional Commonwealth expenditures andwould have flow-on effects for other social security payments.For instance, a 10 per cent increase in the Age Pension wouldcost at least $2.5 billion a year. Abolishing the means testwould cost in excess of $6.5 billion a year.QuALIFyING FOR THE AGE PENSIONCurrent research indicates a very substantial proportion of newretirees have very little in the way of assets outside their home.Although average retirement savings are increasing withthe maturing of the compulsory superannuation system, theabsolute level of assets remains very modest for many retirees.Relatively few (less than 10 per cent) of the 2.9 million or soAustralians currently aged 65 and over have a substantialprivate or taxable income. For instance, there wereapproximately 160,000 individuals in that age group with ataxable income of $50,000 and over in 2005-06, with a further70,000 individuals with taxable income between $40,000 and$50,000.DEvELOPMENTS IN THE MEANS TESTThe basic structure of the Age Pension as a means tested flatrate benefit has remained largely unchanged over its history,although numerous modifications have been made to the rules.For much of the history of the Age Pension, the means testhas provided significant disincentives for self provision. Overcertain ranges of assessable assets, the asset test applyingprior to 20 September 2007 effectively removed the benefitof increased private retirement savings, as any additionalretirement income from higher private savings was totally offsetby a decline in the amount of Age Pension received. As a resultvarious strategies were developed to get around this.

However, the post 20 September 2007 rules, introduced as partof the Simplified Superannuation package, provide a moreequitable approach.Single homeowners as a result were able to have as muchas $529,250 in assessable assets and still receive some AgePension, while for a couple the figure was $839,500 (theseamounts are subject to ongoing indexation).While these changes have removed the need for retirees totake out non-commutable income streams in order to avoid theonerous impact of the assets test, they still disqualify relativelywealthy persons from receiving the Age Pension.The changes have had the largest financial impact on singleretirees with between $200,000 and $300,000 in assets andcouples with $300,000 and $500,000 in assets. Couples havebenefited by up to $11,000 per year, with around 220,000individuals receiving some increase in Age Pension orqualifying for the first time. Most of the beneficiaries have beenexisting part rate pensioners.SuSTAINABILITy OF THE AGE PENSIONDespite Australia’s ageing population profile, the current AgePension system will remain affordable well into the future.Accordingly, government policies relating to superannuationare more focused on improving retirement incomes than onrestraining aggregate government expenditures on the Age本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。