Australia Considering The Chipping/Tracking Of 100 Dollar Bills

[WhatInThe]

Australia is considering the chipping/tracking of 100 dollar bills to prevent cash hoarding by seniors. They say seniors are hiding assets in the form of cash to keep their pension payments higher. Pensions are subject to an asset test in Australia

https://dollarvigilante.com/blog/20...g-seniors-money-to-stop-them-from-saving.html

Well I guess chipped cash is better than confiscated cash in the US.

Will there be a run on smaller denominations is the question.

 

[Don M.]

Interesting....I looked this up on a Australian government site, and there are all sorts of restrictions....depending upon a person's income per "fortnight". I think a "fortnight" is defined as 14 consecutive days. There seems to be a loss of funds if a couple makes over $300, per "fortnight". Heck, that wouldn't even qualify as low end poverty income, here. The site goes on to display several other figures that indicate that a couple would not get any more pension money if they had a income of around $3000/fortnight....now, that makes more sense, as that would indicate an annual income in the $70,000 range...which should be a nice income for most retirees.

Perhaps someone from Australia might chime in here, and explain their system better.

https://www.humanservices.gov.au/customer/enablers/income-test-pensions

 

[dpwspringer]

Interesting....I looked this up on a Australian government site, and there are all sorts of restrictions....depending upon a person's income per "fortnight". I think a "fortnight" is defined as 14 consecutive days. There seems to be a loss of funds if a couple makes over $300, per "fortnight". Heck, that wouldn't even qualify as low end poverty income, here. The site goes on to display several other figures that indicate that a couple would not get any more pension money if they had a income of around $3000/fortnight....now, that makes more sense, as that would indicate an annual income in the $70,000 range...which should be a nice income for most retirees.

Perhaps someone from Australia might chime in here, and explain their system better.

https://www.humanservices.gov.au/customer/enablers/income-test-pensions

A fortnight is what fourteen nights sound like with certain British accents... after they have had a few beers.

 

[Aunt Bea]

Nothing wrong with hoarding a little cash, it amazes me how little cash people keep on hand and how you become a suspect in some giant conspiracy if you carry some cash or keep a little under the mattress.

I would think that the chipping might help to track illegal drugs, gambling, etc... more than a few grannies with a roll of cash tucked in their garter.

 

[Warrigal]

Aunt Bea is on the money, no pun intended. While some hoarding of cash by seniors does occur the reason why so many $100 bills that have been printed are not in circulation is due to money laundering, not granny stashing.

With regard to the aged pension, everyone is entitled to receive it subject to both an asset test and an income test. Hubby and I receive a part pension plus all of the associated benefits because we have money invested in a pension fund. The income from the fund does not count as assessable income because it is our own savings and was taxed years ago. The value of our home doesn't count as an assessable asset either so our pension benefit is calculated on the total amount of our investments and cash savings taken together. Our aged pension is about 60% of the full amount and our other income stream is a monthly dividend from our own fund.

I can assure everyone that this provides a very comfortable retirement. We can afford private health insurance and the occasional ocean cruise and we eat very well on quality fresh food. Our gas heater goes on whenever we feel cold and we want for nothing.

Last month we gifted $10,000 to our daughter which is allowable under the assets test and it resulted in a slight increase in our fortnightly pensions but the gift must be declared because there is an annual limit as well as a five year limit. If the limit is exceeded then the value remains included in our assets total for the appropriate number of years.

It is complicated but the system is designed to be both a safety net for those with little means after retirement and an incentive to save so that by seniors being partly self funded there is less of a drain on the budget.