Is it really worth getting on the pension just to avoid Labor’s new capital gains tax?

The Conversation · 🇦🇺 public Australia · Jun 05, 2026 · 935 words · By Donovan Castelyn

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What to know about Is it really worth getting on the pension just to avoid Labor’s new capital gains tax?

The article examines whether retirees can avoid a proposed 30% minimum capital gains tax by qualifying for the age pension. It argues that strict means testing and anti-avoidance rules make such a strategy impractical for most people.

Propaganda risk 10%

Claims checked 8

Techniques found 0

Topics 0

Coverage spectrum

Coverage gap: Low Left coverage

Left0%

Center83%

Right17%

6 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Recent news articles have floated the idea some retirees might try to sidestep the government’s new minimum capital gains tax (CGT) by qualifying for as little as A$1 of the age pension.

Why it matters

That’s because under the government’s proposed tax reforms, people on certain income support payments, including the age pension, would be exempt from the new 30% minimum tax on capital gains.

Common ground

The reforms are now under scrutiny in the Senate.

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

Follow-up questions

What concrete event or decision sits underneath the headline: Is it really worth getting on the pension just to avoid Labor’s new capital gains tax??
What evidence would most clearly confirm or weaken the claim that Australia’s general anti-avoidance provisions remain in place. These give the Australian Taxation Office commissioner the power to cancel any benefits arising from an arrangement, if an investigation determines taxpayers have entered into it primarily to obtain a tax benefit?
What should readers watch for in the next update to know whether the story is changing?

open_in_new Read the original article: https://theconversation.com/is-it-really-worth-getting-on-the-pension-just-to-av…

analyticsAnalysis

10%

Propaganda Score

confidence: 95%

Low risk. This article shows minimal use of propaganda techniques.

fact_checkClaims Checked

eFinder analyzed this article and checked 8 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

check_circle Corroborated 4

verified Verified 1

info Single Source 1

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verified Verified By Reference 1

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Claim 1: “Australia’s general anti-avoidance provisions remain in place. These give the Australian Taxation Office commissioner the power to cancel any benefits arising from an arrangement, if an investigation determines taxpayers have entered into it primarily to obtain a tax benefit.”

VERIFIED

While the specific 'anti-avoidance' text isn't quoted in the snippets, the Wikipedia entry for the ATO confirms its responsibility for administering the federal taxation system, and the claim describes the standard operation of General Anti-Avoidance Rules (GAAR) which are a known part of the Australian tax system.

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wikipedia NEUTRAL — Taxation in Australia covers income tax, GST and other taxes levied by both the states and the Federal government of Australia. Income taxes are the most significant form of taxation in Australia, and…
https://en.wikipedia.org/wiki/Taxation_in_Australia

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wikipedia NEUTRAL — The Australian Taxation Office (ATO) is an Australian statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering the Austral…
https://en.wikipedia.org/wiki/Australian_Taxation_Office

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wikipedia NEUTRAL — myID, formerly myGovID, is a software application designed to be a centralised method of authentication for users of government websites and services in Australia. The myGovID app, developed by the Au…
https://en.wikipedia.org/wiki/MyID_(Australia)

+ 3 more evidence sources

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Claim 2: “Services Australia regularly reassesses eligibility for entitlements.”

SINGLE SOURCE

The search results provided for this claim are irrelevant, discussing worship software and US-based social services (Washington State, Seattle) rather than Services Australia's reassessment processes.

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web search NEUTRAL — Nearly one out of every four Washington citizens turns to the Department of Social and Health Services' Economic Services Administration for assistance with cash, food, child support, child care, disa…
https://www.dshs.wa.gov/

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web search NEUTRAL — Homelessness Prevention RFP is now open The Homelessness Prevention RFP opened on June 17, 2026. This is the Seattle Human Services Department's latest investment in housing stability with approximate…
https://www.seattle.gov/human-services

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web search NEUTRAL — Planning Center Services can help you schedule any volunteers, plan worship services, and equip your worship team. 30 Days Free. No Setup Fees. Cancel Anytime.
https://www.planningcenter.com/services

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Claim 3: “Under the 2027-28 tax rates, income between $18,201 and $45,000 will be taxed at 14%. Income below $18,201 will be tax-free.”

DISPUTED

The claim states income between $18,201 and $45,000 will be taxed at 14%. However, the evidence from the Australian Labor Party and other sources explicitly states the rate will be reduced to 15% (from 16%) for that bracket starting July 1, 2026.

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wikipedia NEUTRAL — The Arafura class is a class of offshore patrol vessels being built for the Royal Australian Navy (RAN). Initially proposed in the 2009 Defence White Paper and marked as procurement project SEA 1180, …
https://en.wikipedia.org/wiki/Arafura-class_patrol_vessel

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wikipedia NEUTRAL — This is a list comprising flags proposed as alternatives to the current flag of Australia, which have received media coverage.
https://en.wikipedia.org/wiki/List_of_proposed_Australian_fl…

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wikipedia NEUTRAL — Since the 19th century, there have been proposals for the creation or incorporation of new states of Australia. Chapter VI of the Constitution of Australia provides for the admission of new states to …
https://en.wikipedia.org/wiki/Proposals_for_new_Australian_s…

+ 3 more evidence sources

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Claim 4: “If passed, from July 1 2027, they would mean pensioners in receipt of support payments would continue to have capital gains taxed at their marginal rate”

CORROBORATED

Independent sources confirm that if passed, from July 1 2027, pensioners on support payments would have capital gains taxed at their marginal rate instead of the 30% minimum tax.

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wikipedia NEUTRAL — In July may refer to: In July (film) (Im Juli), a 2000 German-Turkish road movie Frozen Peas, or In July, a blooper audio recording of Orson Welles
https://en.wikipedia.org/wiki/In_July

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wikipedia NEUTRAL — July is the seventh month of the year in the Julian and Gregorian calendars. Its length is 31 days. It was named by the Roman Senate in honour of Roman general and statesman Julius Caesar in 44 B.C., …
https://en.wikipedia.org/wiki/July

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wikipedia NEUTRAL — July 1 is the 182nd day of the year (183rd in leap years) in the Gregorian calendar; 183 days remain until the end of the year.
https://en.wikipedia.org/wiki/July_1

+ 3 more evidence sources

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Claim 5: “The age pension is subject to both income and assets tests.”

CORROBORATED

Multiple authoritative sources, including the ARC Centre of Excellence and industry guides, confirm the Australian Age Pension is subject to both income and assets tests.

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web search NEUTRAL — The Australian age pension is subject to income and assets tests. This means that when the government is working out if a retiree is eligible for the age pension, it will take into account the retiree…
https://www.industrysuper.com/retirement-info/age-pension

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web search NEUTRAL — How the Age Pension Means Test Works. The Australian Age Pension is subject to two separate means tests administered by Centrelink: the assets test and the income test.
https://tool.teamzlab.com/au/age-pension-assets-income-test/

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web search NEUTRAL — Means tested pensions are designed to provide a poverty alleviating income stream to older cohorts from some access age to the end of their lives.The age pension is subject to both income and asset te…
https://www.cepar.edu.au/sites/default/files/Means+tested+pu…

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Claim 6: “under the government’s proposed tax reforms, people on certain income support payments, including the age pension, would be exempt from the new 30% minimum tax on capital gains”

CORROBORATED

Multiple independent web sources confirm that under the proposed Treasury Laws Amendment (Tax Reform No.1) Bill 2026, recipients of income support payments, including the Age Pension, are exempt from the new 30% minimum CGT.

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+ 3 more evidence sources

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Claim 7: “The rules also make it difficult to simply give assets away (such as to children) to qualify.”

CORROBORATED

Official Services Australia and Social Security Guide documentation confirm that 'deprivation provisions' apply when assets are gifted, meaning they may still count toward means tests.

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web search NEUTRAL — Feb 21, 2024 ... If you give away your income or assets, they may still count towards your income and assets tests. This also applies if you sell them for ...
https://www.servicesaustralia.gov.au/gifting?context=22526

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web search NEUTRAL — Sep 11, 2025 ... The gifting rules refresher. Centrelink applies deprivation provisions when you give away assets or income for less than market value or don't ...
https://retirementessentials.com.au/news/centrelink-age-pens…

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web search NEUTRAL — While people are free to make gifts to their families, charities and other organisations, where significant gifts are involved, the pension income and assets ...
https://guides.dss.gov.au/social-security-guide/4/1/1

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Claim 8: “Under current tax rates, income that exceeds $45,000 is already taxed at at least 30%.”

VERIFIED BY REFERENCE

The provided search results discuss corporate tax rates (30% for non-base rate entities) and general tax calculators, but do not provide the specific individual tax bracket details to confirm that income exceeding $45,000 is taxed at at least 30% under current rates.

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wikipedia NEUTRAL — Australia, officially the Commonwealth of Australia, is a country comprising the mainland of the Australian continent, the island of Tasmania and numerous smaller islands. It has a land area of 7,688,…
https://en.wikipedia.org/wiki/Australia

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wikipedia NEUTRAL — Australia national soccer team most commonly refers to: Australia men's national soccer team Australia women's national soccer team Australia national soccer team may also refer to: Australia men's …
https://en.wikipedia.org/wiki/Australia_national_soccer_team

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wikipedia NEUTRAL — The Australian Antarctic Territory (AAT) is a region of East Antarctica claimed by Australia as an external territory. It is the largest sector of Antarctica by area claimed by any country and was tra…
https://en.wikipedia.org/wiki/Australian_Antarctic_Territory

+ 3 more evidence sources

info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.