What Did I Tell you? A Death Tax! By James Reed
I covered this one in an article last week, as Paul Keating (remember him?) gave us the news that there would be a HECs type of scheme for aged care, but no death tax. Well, guess what? Read on:
“Baby Boomers could be asked to sell the family home when they die to pay for aged care costs under a new plan to slap an effective death tax on seniors to fund care. Former Treasurer Peter Costello has urged the Morrison Government to consider an expanded pensioner loans scheme during his appearance today at the Royal Commission into Aged Care. Under the proposal, seniors would be given the option of taking out a loan secured against the family home, that would then be sold when they died or other assets liquidated. While some banks already offer reverse home loans, Mr Costello has called for debate on expanding a pensions loans scheme to use the family home as an asset that could be sold when a retiree dies to recover costs. “I mean, financial products that can allow people to raise accommodation bonds against the family home, which is generally their greatest asset, I think there’s a much more scope for them and I think the Government could assist there,” Mr Costello said. “The Government has a thing called the Pension Loan Scheme which it says is available. The private sector has what is called a reversible mortgage or equity drawdown mortgages. “But I do think, you know, this is a classic area where those people that do use residential care and do have assets should be asked to make a contribution and guaranteed a return of their deaths.”
Get ready: they are moving to take away everything you have in one way or another. I cannot offer financial advice here, or anywhere but know it is worthwhile getting expert legal/financial advice if you are concerned about this issue. It is sure to get in, as these speakers are just testing the waters, the usual Fabian strategy.