A majority of Australians highly value the concept of a guaranteed income for life. It’s easy to forget that the Age Pension provides such a safety net, initially for the 65% of those who reach Age Pension eligibility age of 67. And further down the track to 80% of Australians in their 80s.
The Age Pension has changed quite a lot from the benefit that was first introduced for men in 1908 and soon after for women in 1910.
Ways to deal with Centrelink have also changed. Today we bring you up to date on Centrelink services and what to expect when you need to get in touch. To do so, we’ve gone straight to the top with a Q and A with Hank Jongen, General Manager. Here’s what he had to say.
Q. How many Australians are currently on Age Pension benefits?
And how many have a Commonwealth Seniors Health Card?
A. As of June 2024, over 2.5 million people receive the Age Pension and over 523,000 have a Commonwealth Seniors Health Care Card.
Q. How can you prepare for an application for the Age Pension?
A. Retirement is something we all look forward to, so I know people don’t want to wait longer than they have to. When you’re preparing to apply for Age Pension, it’s important to understand the types of documents you might need.
For example, we might ask for documents to show the balance of your superannuation or any other investments – so it’s important to have those handy before you start your claim.
Q. How early should you start an application?
A. I highly encourage people to apply for Age Pension up to 13 weeks before they become eligible. That could be 13 weeks before you reach Age Pension age or 13 weeks before you retire and become eligible. This gives people plenty of time to make sure they’ve provided all the right documentation.
Q. How long does a typical claims process take?
A. As I mentioned earlier, you can apply for Age Pension up to 13 weeks before you become eligible. That gives you plenty of time to provide all the information and for us to process your application. For the last quarter (July – September 2024), the average processing time for an Age Pension was 49 days. This is a big improvement from last financial year when it was 76 days. This is thanks to the government’s investment of 3,000 additional staff at the end of last year. Since the additional staff joined us we have made significant improvements across nearly all areas and are processing claims 60% faster than at the beginning of the year.
Q. How long are phone wait times now?
A. Also thanks to the additional staff, we’re now answering calls up to 60% faster since this time last year. Over the last three months (July – October), the average call wait time is down to 15 minutes. It’s important to note that how long you wait on the phone can depend on a few factors, such as the demand across the board on any given day, the particular phone line you’re calling, and seasonal peaks. We encourage you to do your business online with us when you can – like applying for the Age Pension or updating your details if you’re already on payments.
Q. What about Commonwealth Seniors Health Card (CSHC) processing?
A. Unlike an Age Pension, you cannot apply for CSHC early. You can only make a claim once you’re eligible (for example, you reach Age Pension age). The CSHC is subject to an income test. If you’re about to be eligible, I suggest getting your documentation ready to make a claim. For example, you may need your latest Notice of Assessment from the Australian Taxation Office. For the last quarter (July – September), the average processing time for a CSHC was 18 days, compared to 42 days last financial year.
Q. Do you have any tips on managing payments over Christmas?
A. The silly season seems to roll around so quickly, I cannot believe we’re there already. We have special arrangements for payments and services over the December and January holiday period. Our Service Centres and most phone lines providing Centrelink, Medicare and Child Support services will be closed on the public holidays. You can continue to do your business with us online through myGov during this time.
It’s also important to note there may be changes to the day you normally report your income from employment and the day you’re normally paid, if they would normally fall on one of these public holidays. Some people might get their payment earlier than usual.
Q. If your situation changes what does Centrelink need to know?
A. A common misunderstanding we hear is that Services Australia is automatically notified when your circumstances change. I need to clarify that this is not the case. It’s important for people to let us know about changes that could affect their rate of payment.
When your income and assets change – for example you sell your car or buy a new car, invest in some shares or your bank account decreases – you need to let us know within 14 days. If you don’t notify us within 14 days, we may pay you too much or you may be entitled to more Age Pension. Telling us about changes is easy. The best way is online through myGov. You can also call us on 132 300 or make an appointment to visit your local Service Centre.
Q. What if you disagree with a decision? Do you have any recourse?
A. If you disagree or want more information about a decision we’ve made, you can ask for an explanation or apply for a formal review.
I encourage people to ask for an explanation first, because more often than not, we may be able to provide you with more information and you won’t need to apply for a formal review. Once you’ve asked for an explanation of a decision, an experienced staff member will call you to provide more information. There is more information on our website that explains our review process in detail.
Q. What do you like to do over the holiday season, Hank?
A. I’m a bit old fashioned when it comes to celebrating Christmas. So right now it’s bringing out the Christmas tree and decorations. This year might look a bit different because my mother is in Aged Care and suffering from Dementia. So like so many other families in this situation, we’re trying to plan a way to ensure she can be included in celebrations without taking her out of her usual setting at the home.
However we celebrate, being surrounded by family is the most important thing for me.
How do you want to deal with Centrelink?
Not everyone wants to deal directly with Centrelink. Many Retirement Essentials members have preferred to access our support to process applications, maximise entitlements or to apply for a Commonwealth Seniors Health Card. Retirement Essentials also provides a free Age Pension Entitlements Calculator to help retirees get started on their journey of retirement income funding.
Have you noticed a difference in Centrelink service availability?
What’s your experience been like?
