Age Pension increases from 1 July 2023:
What you need to know
We previously reported that Age Pension thresholds will change on 1 July this year. We now know by how much and who will be affected.
Whilst the changes won’t go live until 1 July, the rates for each category of Age Pension entitlement has been released. This gives you time to consider what this means for you, depending upon the type of benefit you may receive, or hope to.
Below is a short summary of these changes, which we will follow up in fuller detail as the changes are activated on our Age Pension Entitlements Calculator.
And there’s another major change which will occur on 1 July. We previously reported that deeming rates are frozen until 1 July 2024. This remains true. But the deeming thresholds will be increased, benefiting all those whose assets are deemed to earn income by Centrelink. Watch your inbox for a full report on a full deeming rate explainer next week.
Meanwhile, here’s what we can reveal regarding income and asset thresholds:
Full Age Pension income threshold increases by:
- Singles threshold $204 per fortnight, increase is $14 per fortnight, $364 per annum
- Couples threshold $360 per fortnight, increase is $24 per fortnight, $624 per annum
(for those who receive a pension, a Work Bonus Credit of $11,800 can be added to these amounts until 31 December 2023)
Upper (Disqualifying) income threshold increases by:
- Singles threshold $2332, increase is $14 per fortnight, $364 per annum
- Couples combined threshold $3568, increase is $24 per fortnight, $624 per annum
Full Age Pension assets threshold increases by:
- Single homeowners threshold $301,750, increase is $21,750
- Single non-homeowners threshold $543,750, increase is $39,250
- Couple homeowners combined threshold $451,500, increase is $32,500
- Couple non-homeowners combined threshold $693,500, increase is $50,000
Upper (Disqualifying) asset threshold increases by:
- Single homeowners threshold $656,500, increase is $21,750
- Single non-homeowners threshold $898,500, increase is $39,250
- Couple homeowners combined threshold $986,500, increase is $32,500
- Couple non-homeowners combined threshold $1,228,500, increase is $50,000
The increase in the lower thresholds means more people will qualify for a full Age Pension than was previously the case and part pensioners could get slightly more as the taper rate kicks in later. The increase in the upper threshold means some people previously ineligible will now qualify.
Our eligibility calculator will have all these new thresholds included a couple of weeks ahead of July 1 so stay tuned for our update next week.
In the meantime …
if you have any pressing concerns about Age Pension eligibility or other Centrelink rules, you can book an entitlements consultation today.
Hello James, I will be considering retirement at the end of 2023. I note the increase to Single home owners threshold will increase in July. My house is valued at approx. 850,000. Does this meann I will not be able to get the age pension or will any pension be reduced due to my house value. I am currently taking a small pension stream to top-up my part time employment.
Hi Carolyn, great question.
Your own home is an exempt asset for Centrelink purposes, so is unaffected by any changes to thresholds. It’s only if you don’t live in your own home that it is counted as an asset, for example if it is used an an investment property.
We have General Advice meetings and Strategy Advice meetings available to book if you would like advice on how your situation qualifies for you receiving Age Pension at end of 2023. I would be more than happy for you to book an advice appointment with us, to discuss how your Age Pension entitlements can be maximised.
good afternoon
my and my husband pension is $1600 a fortnight
are we having any increase?
thank you
Hi Mina, possibly, as the deeming thresholds have increased. We have a free entitlement checker on our website which calculates your entitlement when you enter the value of your assets. It is located here
I am of pension age and working full-time and my partner does not work and does not receive any Centrelink payments or other payments, she is not at pension age yet, am I entitled to a couple’s pension when I retire.
Hi Henry, that’s a good question. Being a couple, Centrelink assesses household income and household assets. If you are within the allowable thresholds you qualify, for either full or part Age Pension depending on your income and asset levels. If you qualify, you would receive half a ‘couple’ rate, and once your wife reaches Age Pension age, she will receive the other half of what you are eligible to receive, so you would both receive Age Pension payments at that time if you qualify under the Income and Assets Tests.
We have a free eligibility checker on our website which can reliably estimate your entitlements here
when will the $14 increase in pension a fortnight be paid
your home is an asset and you are a home owner. the house is exempt if you only own one and it is your primary place of residence.
Carolyn & Sharon
Your home thay you live in is NOT counted it is exempt from this calculations?
we pensioners need help with the cost of living is the government offering another stimulus package
What date will the increase $14 for single age pensioners be paid?
Hi Merle, thanks for reaching out! The increase has automatically been applied to all applicable pensions. If you believe your pension is not being calculated correctly you should call Centrelink on 132 300.
I own my home which is valued at approx $400000 will that affect how much age pension I’m entitled to
Hi Lyndon, the good news is that under current rules your own home that you live in is an exempt asset, so it is not counted by Centrelink. The only thing that changes this, is if you rent out your own home and live elsewhere, then your own home is counted as an investment property asset under the Assets Test.
I have an annuity for which I paid a considerable amount, before retirement. this annuity affects my pension. Is there a formula which applies that affects the pension and if so is there a fixed percentage and how much (%).
Thanks for reaching out Greg, Annuities can be a complex area when determining their impact or benefit towards Age Pension eligibility, as there can be a number of differing factors changing how they are treated. I would be happy to answer your questions and how your annuity is calculated under the income and asset tests in one of our General Advice consults. You are able to book one of these with me here.
Hello James
I have a holiday home valet around 550,000
I have my super around 300,000
Would I qualify for a part pension?
Hi Isabel, Thanks for your query! There is a bit more information needed to determine your potential eligibility. You can hop onto our website and use the Age Pension Eligibility Calculator which should help give you an indication about what you may be eligible for, to take a look click here. We also have a page that explains a little but more about how Centrelink determines eligibility that you can find by clicking here. Alternatively, if you want to discuss your specific situation with someone who can help you understand what is affecting your eligibility you can book an Entitlements Consultation with one of our age pension specialists by clicking here.
eagle eye the beer company try that that’s gotta be worth millions in profit for you yours sincerely linton David saville
how much can I draw out of my super per month with out effecting my super
Hello, I am 67 & work full time, my spouse aged 61 is on workers comp due to a work injury can you advise if we are entitled to a pension with this situation
Hi Daphne, Thank you for seeking clarity. You may be entitled to a part Age Pension however it depends on the total income you both receive and certain details about your partner’s worker’s compensation. To clarify the specifics it would be best to have a consultation so we can talk it through properly. TO make a booking, please CLICK HERE.
I heard from a resident in age the organisation take 85% her pension for the expenses in the home, leaving her with 15%. for her personal use. Deduction of 85% from the increase of $14/-, she only left with only $2.10, not even enough to buy cup of coffee. Thus, this benefit the organisation. What ways can the government prevent this.
The government is raising the Age Cared salary, the organisation wants to increase the fees to the residents.
All in all, the loosing parties are the residents.
Tell me if this information is incorrect.
Hi Sharon
your house value is still counted in the assets test to the tune of about $240’000. You can have more assets if you are renting.
Hi Mx Hardy, thank you for sharing your thoughts. I can confirm though that your primary residence is generally excluded from the assets test regardless of it’s value. If it is larger than 2ha then the land in excess of 2ha can be assessed so perhaps this is what you are referring to.
Hi RJ hardy,
Where did that come from? if you own your place of residence and it sits on less than 2ha then it’s value is exempt as far as Centrelink is concerned.
Explanation Steve
Upper disqualifying limit home owner couple – $986500
Upper disqualifying limit non home owner couple – $1228500
so it does matter when you have your own home, ours is worth about
$500000. So you might see the difference of about $240000.
I am not a pensioner.
R.J. Hardy,
Your statement that “your house value is still counted in the assets test” is incorrect and could be misleading. True that a non-homeowner can have more assets and still receive the aged pension. However this is not the same as a home owner still having their home counted in the asset test. The higher level is purely a recognition that a pensioner has a higher cost of housing than a pensioner who owns their own home.
Point taken Steve. C/L told me if I would buy a more expensive dwelling for about $1 million or more and sell our small place we would immediately qualify for a pension of about $500 each per fortnight with all the benefits of the Pension Card. My friends have done that to leave a lot of value to their kids. So the Govt funds my expenses and the kids inherit more than $1 million tax free.
Fair society? No wonder the house prices are so expensive. Thanks for your reply above.
i am still on a ‘part of a couple ‘age pension,but should be on a single’ one per section 24 of the act..CL told me but after 5 months still waiting on a ruling..my partner is not an Aus citizen,therefore ineligible for welfare benefits.What is the criteria..2018 brought in a new rule regarding defenition of partner?
Hi Peter, thank you for sharing your experience with us! We wish you luck in getting the desired outcome, from our experience section 24 of the Social Security Act is intended to allow Centrelink to treat special cases as singles (such as victims of domestic violence not yet formally divorced/separated) and situations such as yours where your partner is simply ineligible would not allow you to be treated as a single person. We’d love to hear if you are successful.
Ah well now that is a whole new question, financially to you it makes no difference as you would forgo the income earned on that $500k. I think the benefits of doing what your friends are doing needs to be carefully considered. Some dodgy advice being given there perhaps, depending on circumstances.
Hi I was born in 1956 age 66.5 years old. My husband is 59 years old & going to work 2 days a week starting 25 September 2023 and fully retiring in February 2024. Can I still apply for the pension now or after 1July or do I have to be 67 before applying?
Hi Sylvia, thank you for reaching out! Based on your DOB yes you would be eligible to lodge a claim now and do not need to wait until you turn 67. We’ll email you separately to this comment with next steps.
Does all this mean that there will be an automatic adjustment to my part pension from 1 July?
Hi Michael, thanks for your query! Yes Centrelink do automatically recalculate all Age Pension payments when changes like this occur without any action required. Having said that though, Centrelink may have some outdated income/asset values on file for you so it would be a good idea to check/update everything to ensure you get the most amount of pension possible.
can you explain the $4000 income increase to single pensioners. I was told it’s not money but points. How does this benefit work with someone earning $1856 a fortnight. I was approved in April for aged pension and since have received some radical and totally different payments each fortnight. Centrelink told me it all has to do with this $4000 but I am so confused about my differing payments. Thank you. Julie
Hi Julie, Thanks for reaching out! This is definitely something many people are confused about. What you are referring to is the ‘work bonus’, not the income test. Once you are approved for any age pension you become eligible for the work bonus to apply, this means that Centrelink ignores the first $300 per fortnight of employment income when calculating your entitlement. If you have no employment income then your work bonus ‘income bank’ increases by $300, e.g. if for 3 fortnight’s in a row you had no employment income then you would have increased the income bank by $900 so in the next fortnight you might earn up to $1200 ($900 income bank plus the $300 for the current fortnight) before Centrelink will assess the income. Normally you would have to be on the age pension for some time without employment income to build up a bank but from 1 December last year age pensioner income banks were increased by $4,000. Therefore, if earning $1,856pf the first $300 is ignored, the remaining $1,556 is not assessed but reduces the income bank. When the income bank gets to zero then normal situation where $1,556pf is assessable will be the usual outcome. So you probably got higher age pension entitlements for the first few payments until the income bank is exhausted. Hope this helps. If you are still confused about how this applies in your situation both now and going forward and want to better understand your situation I’d be happy to discuss in more detail during a General Consultation which you can book by clicking here.
Hi,
I am about to retire but I am on medication that cost $300 pf. If I go on pension payment, it will only be enough for my medication and doctor visit bills.
I am planning to work part time so I can have enough money to survive.
How much can I earn to not affect the full payment from centerlink?
Hi Fay, thank you for sharing your situation with us! The short answer is that you can only earn income of $204/fn (single) or $360/fn (combined with a partner) however there will also be deemed income from your financial assets that needs to be factored in. I recommend booking one of our Maximising Your Entitlements consultations HERE so we can discuss your situation in detail and give you confidence on the best next steps to take.
I am a homeowner, but I have been in a nursing home for 18 months, is the value of my home an exempt asset?
Hi Ted, Hope you are doing well. This is a tricky one. Often, the home is exempt for up to 2 years for the purposes of calculating age pension entitlements, but it may be exempt indefinitely if a partner remains living in the home. If your home is exempt for only 2 years there could potentially be a significant impact on your age pension payments at the end of this period. However, there is a whole other set of rules for your aged care fees in terms of how your home is assessed and it’s value may already be impacting your means tested fee. I can help you to understand broadly how this may work in our General Consultation (which you can book by clicking here), but to fully understand your position and to help prepare yourself for upcoming changes I suggest you find a financial planner in your local area that specialises in aged care advice.
Hey Guys, I’m recently retired but considering a return to work as a casual. I’m 65 so unable to receive any pension at the moment, but when I do turn 67 what amount of income can I receive before any pension entitlement is taken away from me?
Hi Noel, a great place to start is trying out our Age Pension Eligibility Calculator, it is free to use and gives you a result instantly – You can access it by clicking here. If you would like help to understand the Income and Asset test thresholds, including how the Work Bonus might be used to reduce your assessable income, I would be happy to answer all of these questions in our General Advice Consultation which you can book by clicking here.
Hello, my wife and I are pensioners and have an owner occupier we live in. We have two sons, when we pass away the property will be inherited by our sons and the will be paying capital gain tax. Is there any way to restructure our asset so that they avoid the cgt.
Hi Sam, thanks for reaching out! There are a lot of factors that determine if capital gain tax may be payable. I would encourage you to discuss your particular situation with your tax professional who should be able to provide clearer answers as it is such a complex area and every circumstance is different. Best of luck.
How much part pension would be available if I just qualify under the new Assets threshold from July 2023
Hi Peter, a great place to start is trying out our Age Pension Eligibility Calculator, it is free to use and gives you a result instantly – You can access it by clicking here. If you would like help to understand the Income and Asset test thresholds, and what could be impacting your entitlements, I would be happy to answer all of these questions in our General Advice Consultation which you can book by clicking here.
My wife is working full time as a primary School teacher.
I’m retired. We get a monthly pension income of $4000 from our Retirement Income fund.
Do we qualify for an Age pension or any other pension from Centre Link ?
Arun Sahgal
Hi Arun, our Age Pension Eligibility Calculator should give you a pretty good idea, it is free to use and gives you a result instantly – You can access it by clicking here. However, the way that income is assessed from a Retirement Fund can be a little complicated and it may just be the balance in the fund you need to disclose, rather than the income you are drawing. If you would like some clarification to how this might apply to your specific circumstances and what could be impacting your entitlements, I would be happy to answer all of these questions in our General Advice Consultation which you can book by clicking here.
Hello,
I’m going to be 66 year old in this August, I stopped working at 65, my husband is pensioner and he is allowed working par time ($300/ fortnight). I’m wondering if I am able to get pension
Thanks
Hi Hannah, thank you for seeking our guidance! You can LOGIN and confirm your eligibility via our calculator or alternatively if you’d like to talk about your situation with someone you can book a consultation with us HERE.
Why is the reason that after 10 years receiving age pension
Centrelink without given any explanation suspended my age pension payments
What action needs to be taken
Because the pandemic living at an overseas country
Hi Alberto, thank you for reaching out all the way from another country! There are many reasons why Centrelink may suspend your payment so you would need to contact them for clarity. Depending on which country you are in there may be a local phone number you can call to reach Centrelink, CLICK HERE to view their list of international phone numbers.
Australian pensioners can stay up to 6 weeks overseas and receive their Australian pension normally before their return to Australia. If travelling for longer than 6 weeks, you’ll need to let Services Australia know, and your pension payments may be affected.
Hi, Me and my husband are getting part pension. This time the assessable income is $92,768 for a couple., but when we applied for age pension , 5 years ago, was 68000 approximately. Should we do reassessment or center link will do automatically
Hi Oli, thank you for reaching out! If you have been updating Centrelink of any changes to your income/assets then Centrelink will have updated your pension payments accordingly. If you have not then yes you should give them updated balances to ensure you receive the correct amount.
Hi, I am on part pension, I have loaned $250,000 to my daughter, have sent Centrelink a contract, it will be paid back in 2 years.. I’m still counting it as my asset with still $70,000 that I have in hand.. can you tell me if anything will change for me?
Hi Phyllis, It’s great that you have been able to help your daughter. In terms of the impact to your entitlements, it depends where the funds have come from. If you took funds you already had in cash or other investments and gave them to her then it is likely that you will have $250,000 less of investment assets, and $250,000 in a loan asset. So essentially your overall assessment may not change as your asset and income position is the same! However, a few things can change your assessment. If you want to discuss your situation in more detail I would be happy to go into more detail in an entitlements consultation which you can book by clicking here.
Thankyou would like to know how it will work, will centrlink expect me to add what interest I would have got! My money came from my super!
if you pay a portion of your relatives rent how is this seen by centre link we are now able to claim age pension but what effect will this have as the amount is $300 per week.
if we did not pay they would be homeless
Hi Peter, It’s wonderful that you have been able to help, sounds like they would be in a terrible position without you. From Centrelink’s perspective the amounts would likely be classified as ‘gifting’. There are some specific guidelines around gifting. More information is available on the Services Australia website here, but to understand your specific position in more detail I’d be happy to talk you through how it works in one of our General Consultation appointments which you can book by clicking here.
Hi
We are a happily married couple who have two houses I live in the city in one and my husband lives in the country in the other.
The city house would be considered our principal house.
How would this be considered if we apply for the pension?
Kind Regards Chris
Hi Chris, Thanks for your question! Centrelink only allows for one home to be declared for a couple so it is likely the value of your second home will be assessed as an asset. Whether or by how much this impacts your entitlements will depend on its value as well as the value of your other assets. I’d be happy to chat to you directly about what your situation looks like and what may be impacting your entitlements, you can book a consultation by clicking here. You may also like to use our Age Pension Eligibility Calculator if you haven’t already, you will need to include the value of the home in the ‘Investment Property’ section. Even though you are not renting the property out but living in it, its value is still treated the same (same situation when families have a ‘holiday home’). You can access the calculator here.
Hi Steven. Through RE my wife and I have just applied for a small (Centrelink) part pension to supplement income from our SMSF. Whilst awaiting Centrelink’s consideration of our application – which we understand could take a few months – we find it necessary to withdraw some funds from our SMSF to meet some unexpected but vital medical and home maintenance costs. We assume this may increase our part pension. At what point should we engage with Centrelink through your great service, to notify them of these changes in our situation? Should we wait until our current pension application is determined/ approved? Thanks for a great service.
Hi Dan, thanks for coming back to us for further support, Thomas says hi! It is best to notify Centrelink of any changes as soon as you are able so that they can approve your claim for the correct amount and avoid any over/under-payments. I’ll pass your message on to Thomas and get him to contact you about the changes and best next steps.
Hi I am 66 years turn 67 on 25/01/2024 work only 2 days a week my wife 61 not working can I apply for pension now or I have to wait until I turn 67 and stop working ? Thanks
Hi Rabdel, thank you for seeking our guidance! If you were born prior to 31/12/1956 then you can apply for the Age Pension at 66.5 but otherwise anyone born from 01/01/1957 onward must be 67. You can apply 13 weeks prior to turning 67 to allow Centrelink time to approve your claim before you are due to receive your first payment.
I have recently retired but continue to work occasionally as a casual. Therefore my weekly income fluctuates from nothing for several weeks to $800 plus on other weeks. I’m about to apply for a pension but don’t know how to address this issue.
Hi Carole, Thanks for reaching out. We have assisted a lot of pension applicants who are continuing to work casually and it can seem confusing. When you submit your application you will need to supply your two most recent payslips. Sometimes it can take Centrelink a little while to pick up and assess your application, so you should continue to provide updated income figures each fortnight (even if your earnings are zero). It is likely that once you are granted age pension you will be on fortnightly reporting, meaning you need to let them know each fortnight the hours you worked and rate of pay. Then your age pension entitlements may vary fortnight to fortnight based on your previous fortnights earnings. It’s just important to ensure that the income over the period of your application doesn’t exceed the upper income test thresholds. You can find more information about this on our website here, or I’d be happy to discuss it in more detail with you in a consultation. You can take a look at our consultation services by clicking here.
The gifting rate is still $30,000 over 5 years. This has been the same since at least since 2011.
$30,000 at that time was worth a lot more than it is now.
Has Retirement Essentials made any representations to the government to increase the amount?
Hi Barbara, thank you for sharing your point about gifting not rising with inflation! In terms of Retirement Essentials trying to drive change with government we do not currently have that kind of reach or influence.
Hi
I have won money on keno.
will centerlink class this as income.
$10k
Hi Deanna, Congratulations! I remember winning $55 on Keno once, I was pretty happy about that so you must be enjoying the win. It is likely, if it was a single lump sum, that it won’t be treated wholly as income. As your bank account balance has increased it has increased your assessable assets, and there may be a small amount of ‘deemed income’ from this. Whether or not this has a small impact on your entitlement will depend on your current situation, whether you are currently a full or part pensioner, how close you are to the thresholds, and whether you are most impacted under the income or asset test. So it’s a little complicated. If you are currently a part pensioner and impacted under the asset test your age pension entitlements could reduce by up to $30 per fortnight, if you are a receiving a full pension and remain under the thresholds you may not see any impact at all. For a clearer and more personalised explanation of how this works I’d be happy to discuss with you in more detail in an entitlements consultation. You can CLICK HERE to book.
from July 1st 2023 is the threshold of a full aged pensioner able to work more with out pension being affected this is so confusing.
Hi Lois, thank you for seeking clarity! Yes the amount of income someone on the full Age Pension can earn is increasing. For singles it is increasing from $190 per/fn to $204 and for couples it is increasing from $336 per/fn to $360.
If I had to deposit $100 k I have saved into super after already paying tax on it what tax or fees do I pay on depositing it into super.
Hi Caroline, thanks for reaching out. It sounds like you are asking about a non-concessional contribution into superannuation. These are generally tax free upon entry into superannuation provided you don’t exceed any caps and that you meet the criteria to make these types of contributions. If you would like to understand more about contributing money into super and discuss some things to consider beforehand, I’d be happy to answer all of these questions in a General Advice consultation, which you can book by clicking here.
Hi I am about to turn 70. My wife has just turned 60. I work part time 1 day a week. My wife earns 85000 per year. My wife wants me to retire properly. Because of her income would I be eligible for pension. I earn to $120 per week driving local school bus
Thankyou
Hi Trevor, based on these two income levels you might scrape in under the upper income test threshold, resulting in a part pension – although, there may be other Deemed income to also take into consideration. You might like to try using our Age Pension Eligibility Calculator, which is free and gives you an instant result. Alternatively, I’d be happy to answer all of your questions in a General Advice consultation, which you can book by clicking here.
Hi, The house we live in is in the name of a Family Trust company which my husband is the beneficiary. We have lived here for 23 years, we do not own any other properties. Will Centrelink treat this house as our home or as an asset? To transfer the house into my husband name will he have to pay capital gains tax? I am 67 and husband is 70.
Hi Maria, thanks for reaching out! Centrelink will NOT assess the home as an asset as it is your primary residence and you own/control it via the trust.
Does the Work Bonus reset Calender or Financial year
Hi Warren, thank you for seeking our guidance! The work bonus does not “reset” at all. It starts accruing form the day you become eligible for the Age Pension and only stops when/if you hit the limit (Currently $11,800). If you have the full balance accrued then it will stay at that amount until you use it, it does not reset and you have to start accruing again.
Since my husband and I became pensioners I am not able to understand why is that as a couple, we get less money than if we were single, when all the basic expenses are double (everything for us is times 2), and we dont have any advantage on them for being a couple… let’s say everything we do is separated. Due to our health situation, we even sleep in separated rooms, we use different appliance to get cool or warm times 2, and for ex. we pay rent for 2 not for one. All the basics expenses from the pension are for 2 individual people no 2 in 1 – toiletries (shampoo, soap, toilet paper, toothpaste, etc) – showers, elect/gas – all this is an individual expense – like transport going to see doctors, hospitals, clinics, tests, medicines, etc. are for 2 (are individual matters – meals are for 2 (even different meals) – absolutely everything is for 2 and we get less money than being an individual…just because a paper says we are married. Since I have this chance of asking, I would like an explanation to understand it, because I don’t see why! Thank you very much!
We have a problem. Classed as a homeowner the house is unliveable access is hard track has washed away. Property valued at $285000. Pension cut we each receive $636/fortnight what can we do? Land is 140 acres. We are living in a caravan.
Hi Anne, thank you for sharing your situation and I’m sorry to hear of what has happened. IN this situation your best option is to call Centrelink (132 300) to explain the situation and see if there is anything that can be done about re-assessing your property however they do exclude the house and surrounding 2ha which is where is sounds like the issue is so they may not be able to do anything.
Hello
I turned 67 in March am retired no super left,my husband is 62 still working earning. $3800 per fortnight before tax , am I eligible for a part pension
Denise
Hi Denise, thanks for your query! Even with the increase in the max amount a couple can earn ($3,568) your husband’s income of $3,800 will still be too high so you are not eligible. You will likely be eligible for a Commonwealth Seniors Health Card though, CLICK HERE to check and apply.
I plan to retire next year and my wife and I own and live in our residence. There could be a small mortgage still present and my wife will not be able to receive an aged pension until 2028 (born mid 1961).A few queries
1. Would the hose contents be classed as an asset?
2. Could the small mortgage be classed as a liability and negate part of any assets?
3. Our only possible assets would be two vehicles, one mine and the other my wife’s. Would
these be considered as assets?
Hi Kevin, thanks for your post! Yes, your home contents and cars are assets and do count towards the Assets test but can be disclosed using a ‘market value’ approach, rather than insured or replacement values. In relation to your mortgage query, there could be a few variables to this, and potentially some strategy options for increasing Age Pension benefits which you might be able to consider. I would be happy to explain and answer all of your retirement preparation questions in a General Advice consultation with you, this can be booked by clicking here. Thanks, Megan
I have been waiting since 31 January to claim the age pension almost 6 months. Tried to contact but phone rings out. Went to Centre link and was told it can’t be far away that was 6 weeks ago.
Hi Peter, thank you for sharing your experience with us! If you claim has taken 6 months then this is not ordinary. I recommend you call Centrelink’s seniors line on 132 300 at 8am when it first opens up so you can get through with minimum delay. It sounds like something has gone wrong.
Currently, I own no property in Australia and plan to purchase a residential property (apartment) overseas to become my principal residence before I retire next year. I plan to spend the majority of my time there.
Will this overseas property become an exempt asset for Centrelink purposes?
Is there anything that I need to be aware of to document it when applying for a pension?
Hi good question. Your principal residence is exempt wherever it happens to be located, so yes it will be an exempt asset for Centrelink purposes. Your pension payments will also be adjusted to remove the supplements if you leave Australia. To document it when applying the address needs to be provided in your application.
I am wondering how much I can give to grandchildren. I am in my 90s and on the full OAP (for which I am most grateful) My husband passed away last year and before he died we discussed this. I know I can put the amount in my Will but would like to give something to my grandchildren now. Thank you for your reply in advance.
Hi Louise, you can give your grandchildren something now, and Centrelink call this “Gifting”. There are limits on the amounts you can “Gift” without penalty, and if this is exceeded then the excess above the threshold is counted as a financial asset of yours for 5 years, and Deemed (just like if the funds are sitting in your bank account still).
The allowable threshold you can Gift is $10,000 every financial year, and no more than $30,000 in a 5 year period. This is the total amount you can Gift, not the amount per grandchild.
Hi Louise, our condolences at having just lost your husband after what I’m sure were many wonderful years together. If you are already receiving the full Age Pension then you can gift as much as you like to grandchildren, there will be no penalty. You should still declare the gift to Centrelink though so they can update you asset values accordingly in light of the reduction.
My wife and I have an investment property and no other sources of income (no longer working due to ill health and disability).
The rental income from this property is less than $1400 a fortnight. However the value of the property may be upwards of $980K, or as low as 7/800k, depending on how it is valued (I referred to online websites, some are saying 650-780k, others saying high 900s). How does Centrelink value property for the asset test? What can I do to maximize my pension payments?
Thanks
Hi Mx W, thank you for seeking further support from us! We’d be happy to have a consultation with you around how you might maximize your entitlements. We can of course explain how property valuations work and other tips/tricks you may be able to take advantage of. Please CLICK HERE to make a booking.
Hi
I will receive “sitting fees”, which are consultation fees for sitting on a Reference Group. These sitting fee payments will be on a periodic basis. I have a sizeable Work Bonus balance, and the payments are small enough that the work bonus will always cover them. Therefore my partial aged care pension will not be affected. I should mention I am widowed, so there is no partner implication.
My question is whether these payments will affect my Aged Care Fees. Currently, my fees are made up of a Basic daily fee and an Accommodation Contribution fee. (no Means-tested care fee) Logic tells me that if my Aged Pension is not affected by these periodic payments, therefore my Aged Care Resident fees should not be affected, but I have been caught before assuming something and then finding that logic does not always prevail.
If Aged Care uses the same definition of Income as used by Centrelink for the Aged Pension, then there is no issue, and there would be no increase in Accommodation contribution fees, but with no specific reference to Work Bonus on the MyAged Care website.
Your response would be appreciated.
Hi Ted, well done knowing the system so well! Aged Care is a bit outside of our wheelhouse though so we could not clarify if/how it will be impacted. Hopefully one of our other readers can reply with clarity otherwise you should call Centrelink on 132 300 to be safe.