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Age Pension to Become a Loan Against the Family Home

The Australian Chamber of Commerce and Industry (ACCI) is warning there is a real risk that Australia could become an eocnomic basket case like Greece or Spain. ACCI chief executive Kate Carnell wants the May budget to curb what it calls ‘runaway spending’ on the aged pension, family tax benefits and childcare.

This week ACCI recommended to Government that the age pension become a loan against the family home. Chief Executive Kate Carnell declared on ABC Radio National that  spending on the Age Pension must be reined in. So the the scheme offered in the their budget submission is for the Age Pension to be paid as a loan to retirees who own a home, and then the ‘debt’ would be paid back by selling the house when they died.

“It seems irrational really for a family home not to be counted when you look at pensioners’ capacity to fund themselves,” Ms. Carnell argued.

In the last COTA CONNECT we reported on the fact that one third of Australian pensioners live in poverty and that compared to other OECD countries Australia’s spending on the pension is quite mean

You can read ACCI’s budget ideas here. 

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