Andrew Dickens: It's time for the Government to back our seniors

Early Edition with Ryan Bridge

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3d ago 2:12

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Pensioners marched on Parliament yesterday, demanding that politicians remember them.

And one of the biggest things on their mind is the rules around retirement villages.

Here’s an example:

A couple had been in their retirement village for 10 years. Needing more care, they decide to move out and find a more appropriate place to live.

They’d bought their villa for $600,000, but under the current situation they’ll get just $400,000 of that money back. So, no capital gain at all.

The village is then free to on sell the villa say for $1.2 million, and they don’t have to pay the couples $400,000 back until they find some to take over the licence. In some cases that may take two years.

So, no capital gain, in fact a loss, and then no funds at all in the bank until the village decides to re-licence

The only way a village works for you is if you stay in it until the day you die. But you will not be passing on any capital gains to your kids, you’re going to lose half your capital.

That’s the deal.

Labour’s Ingrid Leary promised to do something about this but lost the mandate.

Now the Government continues to say they support our seniors, and they are also railing against taxes on capital gains.

But our seniors are being hit with a defacto capital gains tax that far exceeds anything Labour has suggested.

I think it may be time to walk the walk that you’ve been walking and talking but not doing. Let’s not ruin our seniors' last days by taking too much of the money they spent their whole life working to have.

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