Thursday, February 11, 2021

World News and my Views, January 2021

WELCOME TO MENFRANCO GENERAL BLOG. Today we will start posting a few posts about Australia, we will start with the drought issue that is affecting the farmers, and continue with other issues that affects the Australian public, and other world issues. 

In the world happen many things that we want to talk about and remember, so, we are forced to chose a few that seem more important to remember. This is just what I am doing today. 

Welcome to our article,  World News and my Views, January 2021  

Dear readers, I have been writing a few articles about Australia, where I wanted to  highlight the facts that the social security could be better, if it is organized better. But today there are other news in the world, that I would like to write in my diary to keep my own record. Today there are 2 important things that continue to be on the news all the time, one is the COVID19, the other one is the political scene in America and Italy. But fist let us compare the COCID19, since I have written about this somewhere else recently, where we made a list of what was happening.

So, let us write a list like we did last time, to compare it with:

Anyhow, I can say that today is the 31st of January 2021. About the corona virus, I believe that Australia is doing better than the rest of the world. In fact, not much has happened since last time, but let us note the difference.

Today the 31st of January 2021, Australia has had, 28,806 cases positive and 909 deaths so far. If we compare this with last time it is only 500 more cases positive and one death. 

Anyhow, yesterday there was this Australia day celebration, and a lot of people came together, let us hope that this event does not spread the COVID9 pandemic. Now, at this Australia day celebration, not everybody was celebrating, because the native aborigines were protesting, letting us know that this for them is invasion day, and they are not happy about it. So, this is another problem that the Australian people and the politicians need to solve. But let us go back to talk about the COVID19 in the world.     

It seems to me that the rest of the world, is still having trouble containing the COVID19 virus, as you can see from the following list.

The entire world has over, 102,500,000 confirmed positive, that is more than 20,000,000 people in a month, the death toll stands at 2,214,000 and growing. Now let us break it down a bit.

USA; 26,300,000 case positive and 445,000 deaths, compared to last month list of, 19,300,000 positive cases, is has increased by 7,000,000 case positive and 108,000 deaths compared to last time 337,000 deaths.

India; 10,790,000 positive and 154,000 deaths. But I must assume that there is something wrong here, because for the last few days their toll does not change. So, they may have stopped counting.  

Brazil; 9,100,000 positive cases and 224,000 deaths, compared with 7,500,000 positive cases and 191,000 deaths.

Mexico 1,840,000 positive cases and 156,000 deaths, compared with 1,377,000 positive cases and 122,000 deaths, a moth ago.  

These are the 4 countries with most deaths.

Followed by the United Kingdom With 3,800,000 positive cases and over 106,000 deaths and growing fast.

And then Italy with, 2,500,000 positive cases and 88,500 deaths, and growing about 500 deaths every day. 

Anyhow, the vaccines have been made, and they have started vaccinating people. We all hope for a good outcome, because there seems to be a few problems there, there are a few reactions from the vaccine, and it is going to take a long time to vaccinate the entire world population. So, we must wait and see what will happen. Meanwhile let us look at political world news. Like what has been happening in USA, and then, what is happening in Italy today. 


The old and new American presidents

President Donald Trump has been a colorful president, every time he came on the news you could aspect something new, he liked to show off, so, while it is not what we aspect from a president, he was entertaining to watch. But that is over now.

The new president Joe Biden is completely different, he is more serious and has not got that energy that President Trump had, but he seems to know what he is doing, so, everything may turn out okay.


The world of politics is strange to say the least. Last time, when I wrote my diary here, we were worried that the outgoing President Donald Trump, was going to make troubles, before he would leave the White House, anyhow, he made it hard to a certain point, but then he left peacefully, even if his actions were strange, because he just left the White House before the new president was sworn in, he went anyhow. Now, we are all waiting what will be his next move, or what the democrats will do to impeach him, most likely nothing will happen.

But what is the difference between Joe Biden and Donald Trump political beliefs, and if their policies are good or bad for America and the entire world, because whatever America does, affects the entire world, at least the western world anyhow. So, let us look at what I believe their policies are, or in the case of Donald Trump were.

Now what I am saying here is my personal view, so, I might be wrong, but anyhow let me tell you, How I see this situation. Four year ago, when Donald Trump became the president, I believe that America needed a president like him. You see, he wanted to make America great again, he wanted to stop the refugees come to America by thousands, and that is what America needed then. So, Donald Trump was the right man for the Job. Anyhow he did most of what he wanted to do, but that was not enough to convince the people to let him have another go. In a way I like Donald Trump and his earlier policies, what I did not like is when he tried to ignore the corona virus pandemic, and I believe that this is the reason why he lost the elections, and he deserved to lose for that reason.

Anyhow, today things are changing, and again it seems to me that America has chosen the right man for the present time but will President Joe Biden rum himself in trouble later we do not know, we must wait and see. This is how I see the American situation today. Anyhow, we may say that the right man comes on the scene at the right time, and when that time is gone, they disappear.

The world of politics is strange, it goes up and down, sometimes for the right reasons, at other times it just happens. Today I am wondering how far Joe Biden is going to move away from Trump politics. I believe that every president has his good and bad sides, so, if Joe Biden thinks that everything President Trump has done is wrong, he is making a great mistake, because the reason Trump won last time was that the previous government was making mistakes too.

It would be wise to be more moderate and try to balance everything the best way you can. The weakest point of the democratic party is that they want to set everybody free, and they hope that everybody does the right thing by themselves. But most people need leadership, because without leadership the poor and less educated people become selfish, when they do, they want to rob the richer people that through their hard work have got something. So, a set of rules need to exist, and a set of law keeper need to be well organized, something that the democrats hate to do. Anyhow, that is just a way that I see them failing.

Now, let me talk about the Italian politics.  


The unsolvable Italian political scene.

In Italy suddenly, the prime minister Giuseppe Conte resigned, because he did not have enough support to pass laws that were needed, to keep the country going. So, today they are trying to form a new government, ether with Giuseppe Conte again as prime minister or somebody else. In Italy there are many political parties and so many leaders, and when there is a large enough party, a group in this party is not satisfied with the rest of the party and they split. When one of these groups splits, if they were forming part of the government, the government may become a minority government and is unstable, just like what has happened now.

You see, a former prime minister, Matteo Renzi has split from the DP and formed his own party, then he has withdrawn his support to the present government, so, the government cannot continue, they need to pass new laws and it cannot be done.

Anyhow, today the 30th of January 2021, the Italian President Mattarella has said to the leader of the parliament Roberto Fico to call the party leaders and see if they can come up with an agreement how to form a new majority government. Which will be most likely with Giuseppe Conte as prime minister. So, we are all waiting what will happen.

So, I have been waiting for a better result, and that everything would be resolved, with Giuseppe Conte as prime minister again. But looks like that Matteo Renzi, did not like it and has made it hard for everybody, so, after consultations President Mattarella has called on Mario Draghi to see if he can find enough support if a different government can be formed, which form of government they can form I do not know, but they are trying. If they cannot form government soon, they have to go back to vote an early election.

Anyhow, I believe that this is going to take a while, and this article is already long enough, so, I am going to publish it the way it is. we will write something else when they have sorted these political problems.

See you soon.   


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World news and my views, January 2021

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Friday, January 29, 2021

The Australian Social Security Must be equal

WELCOME TO MENFRANCO GENERAL BLOG. Today we will start posting a few posts about Australia, we will start with the drought issue that is affecting the farmers, and continue with other issues that affects the Australian public, and other world issues. 

People go to the Centrelink office, where they can apply for their pension, or their unemployment benefit, which the people can receive from the government. In our article here we want to point out that there are some anomalies and people suffer.

Here we are looking for a better security system

Welcome to our article, The Australian Social Security Must Be Equal 

We are looking for a better social security system, where everybody gets a minimum payment, which is equal to the minimum pension or unemployment benefit.

Dear readers, we believe that the Australian Social Security System must be equal for everybody, but it is not, as we have said in our previous articles, which had something to do with the Australian social security system, starting with, Farming Today Is Still a Risky Business, then, Australian Social Security, then, The Australian Parties, then, Australia can do better than this, and then, The Assets Test Dilemma, now in these articles we were talking about how the Australian Social Security System works and helps people. So, we have found that the Australian social security system, is good but not perfect, since some people cannot receive it for one reason or another; therefore, the social security system needs to be changed, to fix these unforeseen failures to help. Australia cannot claim to have a good social security system, when it fails to deliver help to those that need help.

Having said that, now we need to study the situation and try to come up with an answer for this social problem, because, the Australian Social Security system, must be equal for everybody. We believe that everybody in the community must be given a minimum of help, when they need help. So, we are going to suggest our views, hoping that somebody important reads them and does something about it.

Now, what we want to write here is not going to be popular, because it criticizes the existing social security system, since it says that it is not good enough, they need to avoid what is happening to the farmers, so, they must put in place a better system, where people in need are helped. So, let us imagine and talk about a social security system that can guaranty that.


Talking about the ideal social security setup

What we are writing hereunder is an idealistic way for the social security system to adapt, if they can. I said if they can, because it is unlikely that this system can be approved now, because Australia cannot afford it today, however, it is important that something like this exists. We hope that future politicians, start working on this idealistic social security system that we are talking about.

We believe that all legal citizen that are unemployed or don’t have any income, must be granted from the government an amount of money that is at least equal to the minimum government unemployment benefit or pension, it would be like receiving a small wage from the government. Now, we believe that this is what is needed in Australia, and we believe that one day can be done, if we are organised to achieve that, after all Australia is a rich country, so, we should be able to do that. I know that it is going to cost a lot more than we can afford, but if it is well planned, it can be done. Now let us see how this will affect the community and which group of people will benefit from this change.


The people that can benefit from the change.

The people that will benefit from this change, are those people that today don’t receive any payment from the government, and those people that don’t receive enough, so, they are forced to live below the poor threshold. In this case the poor threshold is set, as equal to the minimum government pension that today is about, $900 per fortnight for a single person, or $700 each for a couple. This is the minimum of money that people need to live, and we believe that it must be equal for everyone.

As things stand today, there are people that must live with less than the minimum government pension, because of the anomalies in the system. One of those anomalies is caused from the assets test, where the pensioners receive a smaller pension, the rest of their earnings is supposed to come from their assets, which are supposed to earn about 7.8 %; but most of the rental properties, can only earn about 2.5 to 3%, as we have shown you in our previous article, The Assets Test Dilemma, where a house valued at $650,000 did only make $8500 in a year, which is about 1.3%. So, we believe that the assets test on rental properties must be set according to what they can earn, if the government believes that we need mum and dads to invest in rental properties and keep the Australian real estate market the way it is today.

You see, today people believe to invest in rental properties and it is the way to go; but soon they will become aware that to own a second house, can be a problem when they apply to receive their pension, because the assets test will reduce their pension more than what they can earn from their assets; once the people know that they cannot make any money from rental properties, when they become pensioners, they will stop investing in rental properties.

My views are that the assets test on rental properties, must be set at a level, where it is possible for the owners, to earn at least as much as they loose from the pension. Now my views are that the assets test on rental properties should be one third of what they are now, so that the pensioners will lose one dollar per thousand, instead of three dollars per thousand. But even this might not be enough, you see if you have a property valued at one million dollars, you cannot receive any pension. The question here is; will this property earn the owner about $24,000 per year net. I don’t think so. Anyhow, these are our views.


The property owners’ other problems

As we have seen in this article and our previous articles, to own a rental property is a problem and not a benefit, because people lose their pension or unemployment benefits, so, to own a second property is not the way we should plan for better retirement, since the assets test reduces the pension payments to more than what you can earn from your properties.

But there are more negative things in owning a rental property, the worst of all is the land-tax. The land-tax in Queensland is $1.7 per thousand, this means that if you have land valued it one million dollars, every year you must pay $17,000 to the government just because you own this land. They don’t give you anything at all, you just must pay, because they need the money.

Some people still believe in owning properties, because their price go up all the time, so, they think that they are better off having properties, you see, they don’t realize that there is this gain tax that will take away all their earnings and more, let me give you this example.

You own a rental house that you have bought several years ago for $250,000, which was the right market price, today you must sell the rental house, because you need to move to another town, where houses are about the same value, so, you think that it will be easy; you sell the house for $650,000 and you buy another one about the same price. But that is not going to happen, because the $400,000 dollars that you have gained is taxable. This is called the gain tax, which may well be around $100,000, it is hard to be more specific. So, in this case you may lose $100,000 dollars because of the gain tax.

The figures in this article, might not be correct, but they are close enough to what they are supposed to be for showing our views.

This is all I can say today; this setup is not fair for anybody that owns properties, because those properties in the assets test, cannot earn half the money that they will receive from the government pensions or other benefits, if they had no properties. So, for them it would have been better to have no properties; since the assets test affects the pension and other benefit adversely, starting from the farmers, as we have said in, Farming Today Is Still a Risky Business.

So, people are discouraged to own properties and to save for rainy day, because there is no benefit to own them, since they are going to lose and not to gain. Here we are asking for a chance that the scale in the assets test for properties, be set in a way that gives the property owners a chance to earn at least as much money as they lose, from the government benefit. It is not fair that people lose money because they have worked hard and saved money.

Now we are talking about money, so, if you have money instead of a property, today you are not better off, because the interest that you can receive from the bank, is not equal to the money you lose from your pension. 

Anyhow, this is all what I can think about today. I believe that at least I have pointed out what in my views needs adjustment. Because we believe that, the Australian social security system must be equal for everybody.

I hope that somebody in the government reads my articles, and then thinks what can be done to make them fair for those people that have worked hard. We would have liked to continue to talk about Social Security, but today there are other maters that we need to talk about, because we need to talk about what is happening in the world today. 

See you in next article. 


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The Australian social security must be equal

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Friday, January 22, 2021

The Assets Test Problem

WELCOME TO MENFRANCO GENERAL BLOG. Today we will start posting a few posts about Australia, we will start with the drought issue that is affecting the farmers, and continue with other issues that affects the Australian public, and other world issues. 

As you can see, we have reached the stage. where we want to talk about the government set up, to help the people who need help, but people are not treated the same, if you own a property you may not receive help, as we have already mentioned in our previous blogs.   

The Assets Test Problem

Welcome to our article,  The Assets Test Dilemma

Dear readers, we started to write these articles about what is happening in Australia, when we saw that the farmers were having problems to survive, because of the drought, so, we thought that the Australian government should help. But they cannot help the farmers, because they own properties and the assets test exclude them from government help; it is like other property owners that are excluded also. So, here we are going to write, how the assets test affects property owners. 

I believe that we have suggested that the farmers and the government, need to make something like a collective farming association, where all the farmers can pool a percentage of their farming products and money, which should be tax free from the government, then this pool can be used to help each other when they need help.

We hope that somebody high up reads our suggestion and then do something about it, we hope they do. We also noted that the farmers cannot ask help from the government, because they are self employed and because they have properties, so, their property are assets that stops them from receiving help from the government.

The assets test is a real problem, because it is hard to know, at what level is the right level to apply it, but that is only part of the farmers problem, because also they cannot ask any government assistance since they are self-employed. But when one cannot make money for a long time, and here in the case of the farmers we are talking about years, I think that it would be fair to help them. But the farmers are not the only people that are affected from these government rules of the assets test, because there are other groups of people that are affected adversely as well.      

Anyhow, today in this article, beside talking about the farmers, we are going to talk about the assets test, and how it affects rental property owners in a more detailed way than we have done before. 

Because the assets test punishes rental properties owners

The assets test is a problem for the pensioners that receive a government pension, because it does not consider, if it is possible to earn the same amount of money that will be cut off the pension. Because if they get a government pension, the pension will be cut off so drastically that they would have been better off, if they didn’t have the house at all. I believe that the assets test on rental properties, is set three time as much as it should be, so, something needs to be done.  

I believe that whoever makes these budget and laws, must keep in mind that he should give these properties owner a fair go, if he wants to keep the Australian economy going the best way possible,. 

The aim is to achieve the most benefit for the country, I believe that to achieve you need people that are self-starter and work hard, like the small property owners that have worked hard during their lives and have paid their taxes on what they have earned. They saved some money and invested it on a second house, hoping that when they would retire they could be better off financially, but it did not work the way they wanted, because of the unfair assets test changes that the Australian government has made recently. You see, these self-starter people need to believe that if they work hard, they will be better off in the future. I could say more here, but you can find that here, The Assets Test Dilemma,


The assets test punishes small property owners

The assets test discriminate and punishes financially the small property owners. So, let us write this example

Mr Don Smith and his wife are both on government pensions, but today they don’t get much pension, because of the assets test. The Smith couple thinks that, who made these laws are cruel people, because the assets test discriminates against them, since it is not possible to live on the money that they can earn from the property. So, let us see how it works. One of the problems exist because of the deeming setup, where the government calculate that people can earn $3.00 per fortnight per every thousand dollars you have in the bank, or anywhere else including properties. In fact, owning properties is the worst thing you can have, because it affects the owners in a disadvantaged way, like the Smiths that we are talking about here

The house they rent is valued at $650,000, plus a few more belongings their assets test are nearly 800,000 dollars so, they only get about $100 per fortnight each, because of the assets test.

Now, if they didn’t have their rental property, they would get the full pension, which would have been, $690 each per fortnight each.

Now, let us try to calculate how much the Smiths can earn from their rental property in Brisbane. This property is an old three-bedroom house, on a large block of land that is valued at $550,000, this house is rented at $450.00 PW, so, if they are lucky and the house is rented the entire year, they would collect $23400.00 this is before expenses.

Now, what are the average expenses for this house; The Brisbane City Council rates are $600.00 per quarter; the Urban Utilities average $450.00 per quarter; this will come to $4200.00 per year; the insurance is $1200.00 per year, the land tax (this may vary, but let us say that they have to pay it fully in this example) so, the tax is $6550.00; maintenance can vary, but let us say $1500.00, then there is the fee for the real estate agent say $1500.00 per year.

Let us add this numbers up. So, $4200 to Brisbane city Council rates and water +1200 insurance+6550 Queensland government land tax +1500 maintenance+ 1500 to real estate agent letting fee, it = $14,950

Calculate total net earnings for the year, is $23400 income-14950 expenses=8450

The Smiths have made $8450 net in one year. Do you think they can live on that? Here some people may say that not everybody pays the land-tax, but even without the land-tax, the Smiths will only earn $15,000.00 from their rental property.

This is a lot less than if they were on the government pension, which would have been nearly $36000.00 for both.

But now they only get 20,200.00 at the best, and all the trouble to rent their property.

I believe that these negative things must not happen, it is not right when you have worked hard to put yourself in a better financial position, then suddenly you find yourself worse off. 

Well, somehow, I have had my say, and I hope that it is clear enough what I have said. So, see you in my next article, which will be about, The Australian Social Security Must Be Equal.

See you soon.


This is, Menfranco general blog 

The Assets Test Problem

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See you soon in our blog,  The Australian social security must be equal.   

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Friday, January 15, 2021

Assets and pension cuts

WELCOME TO MENFRANCO GENERAL BLOG. Today we will start posting a few posts about Australia, we will start with the drought issue that is affecting the farmers, and continue with other issues that affects the Australian public, and other world issues. 

The Australian pensioners are alarmed, because their government pensions are going down, and they are losing money. So, in this post we are going to talk about the reasons why this is happening, and people are not happy. 

Assets and pension cuts  

Welcome to our article, Assets and pension cuts 

Dear readers, in our last article, Australian pensioners alarmed, we talked about the disastrous budget that the treasurer Joe Hockey delivered on the 13th of May 2014, in this article we are continuing to talk about the pensions cut, and the effect it will have on pensioners. Depending on what sort of pensioner you are, these changes will affect you in different ways. So, there are pensioners that their pension does not change at all, some pensioners that will be losing part of their pension, and some will lose it altogether. So, if the pensioners are upset about this change, they are right to be upset. Because Joe Hockey is an idiot, because any politician in his position, must consider first the effect of the budget it will have on the poor people, that rely on the pension. 

Anyhow, now let us discuss an example, which we have started in our last article, about Mr. and Mrs. Day, who own two houses, they live in one house and rent the other one. Then, we will talk about other cases, and what some pensioner can do, because for every action there can be a reaction, so, the pension changes can bring other changes.

Talking about Mr. and Mrs. Day, and what they are going to lose, because of the pensions cut.

Let us talk about, how much pension they received before, then how much they receive now, and then compare this with other pensioner, whether they are being discriminated. Anyhow, we are setting this case, in a way that is easy to understand, so, all figures are well rounded figure, and therefore they have not been worked out mathematically.

So, Mr. and Mrs. Day have about $580,000 worth of assets beside their own residence.

Before the 1st January 2017 change, they received about $450.00 per fortnight each.

After the 1st January change, they will receive about $350.00 per fortnight each;

So, they will be losing about $100.00 per fortnight each. Now because they have problems with renting the house. When the house is not rented, it is hard to live on $350.00 per fortnight. One must keep in mind, that a single pensioner that has no assets, receives $873.90 per fortnight, and even they complain about living a modest decent life.

Anyhow, let us talk about owning and renting a house, because Joe Hockey budget, is a budget aimed at ruining the small property investor. So, these small investors must decide now, whether it is worth to keep things as they are, or they need to change a few things, to live their life at the same level of other pensioners. So, now let us look, how owning and renting a house affects the pensioners, if they can receive a government pension.


People owning and renting a house 

People believe that owning and renting a house is the way to go. If you talk to any real-estate agent, they will tell you that it is profitable to own a rental house. But we must ask ourselves if it is profitable all the time, or are there times, when it does not work out in your favor , or the way you want it work out, therefore, owning a second house is not the best thing to have, which is the case of Mr. and Mrs. Day.

As we have said in our last article, today most house owners find it hard to rent their houses, because there are too many vacancies here in Brisbane. So, Mr. and Mrs. Day, had to rent their house for $400.00 per week, which is a low rent if one considers the house value. Anyhow, they hope that the tenants will pay the rent on time and will not damage the house while they are living there. They have worked out that as things are, after paying all the bills, they can average in a year about $200.00 a week net rent. They must estimate a conservative figure, because there are too many vacancies, and there have been times, when their house has been vacant for months.

After going over all this rental stuff, we must start to think whether there is something wrong, with the way’s things have been set up for Mr. and Mrs. Day. So, we should ask. Did Mr. and Mrs. Day make a mistake when they invested in this rental property? Because they were thinking that by having a property for rent, they could be better off when they retied.

But now that the assets-test is changed they are shocked, because their second house investment is more a disaster than a benefit. In facts, they are worse off, because if they had only the house they are living in, they would have received a lot more pension, than what they are earning from their investment. So, they could have more time for themselves, instead of trying to run their property for rent.

Today we can only ask, what sort of government is this? They tell the people to save their money for their old age, so that they can live a better life. But when the people reach their old age, they turn around, change the laws and take away that money from you. But this is not all that we need to say; you see, they make laws that takes away money from the people on the government pensions, but they don’t make laws to cut their own pensions that are huge compared to the rest of us. You see, the means test, and the assets-test does not apply to their politician pensions, so, they can own huge properties or anything else, they can earn anything, and they still will receive their full government pensions and other benefits. So, there is a law for the public and a different law for the politicians.


What some people could do? 

When the laws change, and those properties that you have worked hard for, they don’t earn what you expected them to earn. You must start thinking many things including about what you want to do, and what you can do with what you have.

In the case of Mr. and Mrs. Day, they are losing so much money that they must start thinking about a different set up, so that they can receive more pension than they are receiving now. 

As we have said, Mr. and Mrs. Day, are not on the best terms, they are living together, because divorces and changes are costly, but because of what has happened to their pension, they may have to divorce now. Because, now that their pension has gone down, they have lost that financial balance, which in a way kept them together. So, they will be forced to divorce, because, if they are divorced, they will receive a single pension each. But that is not all, they will own a house each, and live in their own houses, so, they have no more assets, they will not earn any money, so, they don’t have a mean-test or assets-test to go through to receive their pension. therefore, they will receive the full pension each. Now let us see what difference it will make.

Today they receive about $350.00 per fortnight each.

If they are divorced and live in their own houses, they will receive, $873.90 each per fortnight.

Which is a lot more than what they receive today, the only question left here is will they do it?

Anybody that is losing that much money will certainly do it, to make sure, let us look at those figures again, but this time let us see, how much money they are losing in a year, if we work both pensions together:

Now, they receive about $700.00 per fortnight, in a year they are receiving $18,200.00.

If they divorce, they will receive 873.90 each per fortnight, which will be $22,721.4 each.

Or 45,442.8 per year. So, they are losing $27,242.8 government pension in a year.

Our own views on this is this.

If people start divorcing to receive a full single pension in the future, you cannot blame them, because they have been pushed from the government to do it. If the assets-test had not changed, this would not happen.

Now, let us talk about pensioners owning properties.



Pensioners owing properties 

The pensioners that own a rental property today are in a lot of trouble, because everything has turned against them. The government changes the assets-test and cuts the pensions down. Then the properties cannot be rented unless they rent cheap, and, they cannot sell their properties easily, because there are too many rental properties up for sale; and when a business makes not enough money, it is hard to sell.

But there is more, when their rental property is sold, it is subject to the gain tax, here again the government is robbing what is rightfully yours. They are robbing you, because if you want to buy another property of about the same value somewhere else, you must pay the gain tax, which is based on the difference in price, when you bought the property the first time. If you have bought the property a long time ago, for sure there will be a lot of gain tax. Now, I want to point out, if you need to buy another property of the same value, for personal reasons, why you must pay this gain tax, you really haven’t gained anything at all, because you still have a property of the same value. But the government does not accept this explanation, they work on the difference of the price when you bought it the first time.

Now let us look at some other real-estate problems. Some of you may think that I am exaggerating, because everybody things that the properties are always going up. But I tell you what, the boom on the property market for me is already ended, but people are not aware of it yet. When I drive around the street of Brisbane, there are too many signs of places for rent and for sale, when a few years ago, there were none. So, everybody that owns real estate should brace themselves now, for the rough ride ahead, this will also affect the pensioners that happen to own properties.

Anyhow, we want to conclude this article now, by saying that the pensioners are having a hard time no matter where they turn, they find problems.

Therefore, in the future, they better plan to own just one house, and then collect the full pension from the government.

I believe that I have said enough in this article. So, see you in our next article, the assets test problem.


This is, Menfranco general blog 

Assets and pension cuts

Next time with; the assets test problem 

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See you soon in our blog,  The assets test problem.   

See you soon.