Family home in the pension assets test: What do you think?

There have been calls for the family home to be included in the Age Pension assets test, after research from the Australian National University (ANU) showed some pensioners live in multimillion-dollar homes.

High value homes

The research found there were almost 30,000 pensioners with homes valued at more than $2 million who were receiving the pension at an annual cost of $680 million.

Most of these were in Sydney and Melbourne.

The value of pensioners' homes

House value ($)Number of pensioners
Under 50,000
50,000 - 100,004,117
100,000 - 250,00077,771
250,000 - 500,000447,858
500,000 - 1,000,000667,885
1,000,000 - 2,000,000226,540
2,000,000 +29,903

Source: ANU data published in The Australian newspaper.

Potential tax implications

It has been argued that Australian workers could pay less income tax if older Australians living in high value homes received less pension as a result of their principal residence being included in the assets test.

The Australian Financial Review stated in a recent editorial that assets such as the family home should be used to pay for home care.

Chris Kenny from Sky News also weighed in on the debate. He said something had to be done, but this was unlikely given the politics involved.

You can watch the video here.

We'd like to know what you think

With all this debate feeding into the current Retirement Income Review, we want to know what you think about including the family home in the Age Pension assets test.

Let us know by completing the short poll below.