You may recall our article in December which shared tips from Steven Sadler? We asked him what works best when dealing with Centrelink and he responded with some really useful insights into how to progress your Centrelink interactions, including the best time of day to call. Because this article was published on Boxing Day, we realise that not everyone will have seen the extensive Q&A discussions it evoked. So today we are featuring a roundup of some of the most common questions you have asked us about Centrelink and what Steven had to say in response.
And at the very end we share Glenn’s heartfelt comment on the Centrelink system – he’s got a bit to say on the subject.
Mario is interested in a Commonwealth Seniors Health Card (CSHC)
Q. Hi I have two houses, $1 million in super (combined). Would I be entitled to a Commonwealth Seniors Health Card when I’m 67?
A. Steven says…
Hi Mario, thanks for kicking off the comments. There is no asset test for the CSHC so it will depend on how much income you are receiving from your second house and any other sources. The best way to check your eligibility is with our free online calculator which you can find HERE.
Patrick has to report to Centrelink…
Q. Does Centrelink accept a screenshot of transactions? Your commentary suggests it doesn’t?
A. Steven says…
Hi Patrick, thanks for your query. Generally speaking, the answer is ‘no’. Centrelink would not accept a transaction history on its own. It is best to provide a formal statement whenever possible.
Carla is selling her home…
Q. What are the Centrelink ramifications for a full age Pensioner when selling her home? How long can she wait with the proceeds of home sales before having to use these funds to purchase another home. Are there penalties for having the liquid funds for any period of time? I have heard so many conflicting stories from acquaintances about this! My home is on the market and I would like to purchase another after this one sells. Thank you.
A. Steven says…
Hi Carla, thank you for seeking our help! When you sell your home, you will then need to update Centrelink on your new living situation (renting, living with family etc.) and address whilst you look for your new home. At that time they will also ask for a copy of the settlement certificate and a bank statement to confirm how much the house sold for and where the money is currently sitting (to ensure you haven’t invested some of it elsewhere in a new asset). The exemption allowed to build/buy/renovate your new home lasts 24 months. HOWEVER it is not necessarily applied to the full amount you received from selling as it is only applied the portion that you intend to use for the new home. So if you sell for $1million and plan to spend $800,000 on the new home, the exemption only applies to the $800,000.
(Editor’s note: You may wish to learn more about the downsizer contribution and ways to top up super if you do have a surplus from the sale of a property)
Maria is unsure which pension she can apply for…
Hi, I am about to retire at the end of the month, but I am a little confused, I have been declared legally blind and told I should go onto the Disability Pension, and then others say I should go onto the Age Pension. I have contacted Centrelink who were no help at all.
A. Steven says…
Hi Maria, thank you for seeking further support! You will receive the same payment amount regardless of which pension you are on. The main point of difference is that while the Disability Pension has ongoing medical review requirements, the Age Pension does not. Disability Pension recipients may be eligible for a Pensioner Education Supplement and Education Entry Payment whereas this is not available with the Age Pension. Both Disability and Age Pension recipients may receive a Mobility Allowance.
Jeremy is moving money around…
Hi Retirement Essentials,
In the near future I plan to submit to Centrelink a Claim for Age Pension form (SA 002) and also an Income and Assets form (SA369). I will do this online. My situation is relatively straight forward and I am confident of my eligibility for a part Age Pension.
I also wish to carry out a superannuation Re-Contribution strategy, in order to overcome an adverse Death Benefit taxation liability which will inevitably occur. I feel confident of carrying this out myself and I am satisfied that the great number of rules and recommendations surrounding such a thing have been well considered.
However, I can see a potential problem.
As you know, such a strategy requires moving finances backward and forward and, because the ‘machine’ can be slow, it can take some time. If my ‘Re-Contributing’ is carried out after submitting my financial information to Centrelink, then during the period of processing my claim, there will be a discrepancy between the financial information I originally submitted to Centrelink and the financial information that exits in reality as it changes. Therefore, bank balances won’t match, super balances won’t match and maybe some account numbers won’t match either.
Centrelink tells me that I can ‘Upload Documents’ in order to keep them informed of my changing financial status, of which there will be quite numerous instances. I have no idea about how the ‘nuts and bolts’ of the claim processing is carried out, but I do fear that the whole thing will turn into a complete shemozzle – Centrelink confused and scratching their heads, me waiting with no pension.
Provided that the documentation is all as required, correct and properly uploaded, in your experience, what is the likelihood of the ‘Uploaded Documents’ finding their way to the correct place, for Centrelink staff to become aware of and understanding any changes, and for my claim to be processed smoothly? Can you offer any tips as to avoid any pitfalls I might encounter? Thank you.
A. Steven says…
Hi Jeremy, thanks for seeking further clarity! You are right to be cautious, we have indeed seen scenarios such as yours go pear-shaped. In theory, you can make these changes whilst your claim is being assessed and so long as you provide the necessary documents to evidence the changes as they happen then Centrelink can – and should – action them accordingly. Having said that, our recommendation is to either process the changes before applying or once approved.
If you do it prior to applying then all Centrelink has to worry about is your current situation and you will obviously have all of the documents on hand because it has only just happened so you save doubling up supplying one set of supporting evidence just to come back and update them. If you do it post-approval then the documentation required is the same, but from Centrelink’s perspective they now only have to worry about making the updated changes for you. From our experience asking Centrelink to work on your claim and then make changes at the same time is fraught with danger and best to be avoided if possible. It can be done though.
Angela is unsure when she’ll be eligible…
I was born in 1957, so when can I apply for the Disability Pension or the Age Pension?
At the moment I’m on Newstart (now called JobSeeker), after working all my life until 2008, when I started having health issues. Can you let me know where I stand please? Thanking you in advance.
A. Steven says…
Hi Angela, you will be eligible for the Age Pension when you turn 67, so if you were born in 1957, then you will be eligible this year.
And then there’s Glenn, who just wanted to let off some steam!!!
Comment: Why is there not a national uproar about how complex Centrelink is in regards to the Age Pension and its unreasonable time frames in getting back to people?
Where is the lobbying on this issue?
It’s good that Retirement Essentials exists and is here to help us.
But many people my age (68 years old) were told to work for 50 years, be a productive member of society and you can retire at 65 years old (now 67) and get an Age Pension.
Yes, super came along halfway through our working lives, but it has many disadvantages as society is finding out. It’s a feeder institution for multi-nationals to make profit.
We should be like New Zealand or England where you turn pension age and are told,
‘Congratulations enjoy your twilight years (because) you have paid millions in tax’.
The Australian Age Pension was sold to us as a rite of passage. But the government has now made it a complex quagmire and treats elderly people as second class citizens.
Thanks Retirement Essentials for the updates on simplifying the complexity of the government and its changing goal posts.
Need to learn more about your own Age Pension entitlements? Start by checking your likely eligibility using the free Age Pension Eligibility Calculator. And if you need to check further detail, then a Maximising Your Entitlements consultation will help you understand the rules you need to know.
What say you?
Do you think Glenn has a point?
Or is this a bit harsh?
How has your experience of Services Australia and its agency, Centrelink gone? We’d love to hear more about your own ‘Age Pension’ journey.
Glenn is totally correct plus on my case I’m not tech savvy
Hi,
Glenn has hit the nail right on the head. He’s exactly right in everything he says.
What more can we say?
Well said Glenn!
Centrelink is obstructive by design and malevolent by system.
It is very difficult to find the service in Services Australia or to link with anyone at Centrelink.
Obstructive and malevolent……..fantastic description!
You’d think the government didn’t actually want you to have it,!!??lol.
These comments are very harsh. If you keep your finances simple Centrelink is very easy to deal with. You pay taxes as you go through life to find government expenditure for the year in which you paid them. The taxation system is not like a superannuation system.
I agree with Glenn’s point.. Why aren’t we able to use the same process as NZ where the pension is automatic at 65 with no limit on retirement age, paying tax according to total income. NZ citizens also receive a gold transport pass at 65 which entitles them to travel for free out of peak hours on most transport services.
Our system definitely needs to be simplified.
A call to Centrelink can mean waiting on hold for someone to answer the phone for well over 30 minutes, depending on the time.
Well Said Glenn – and I also vent !- I seriously wonder how much ill health is generated by C-Link. The online service is appalling- to be put on hold for 50 minutes ( always more than 20) – and at the end be simply cancelled because too many calling – that’s bad. To have to wait so long just to make an appointment ? – that’s not efficient. I have made online adjustments to Assets& income and the system has exceeded 6 months to be processed ( TRUE). The ‘service’ says one can down load a ‘DETAILED’ assets and income statement. That is actually false if your wife is not receiving any benefits – the wife’s assets will not be recorded on this document- Hence there is no transparency for the final Pension Calculation ( I must go into C-Link and have the officer spend 45 minuets processing and making special print outs… I have reported the issues – but one year later no changes – even though I have written to member of government and they addressed C-Link. Result – a letter from C-Link stating essentially how good they were- useless. I am VERY frustrated – my health suffers every time I have to pick up the phone and hear the same repetitious music that plays at elevated volumes – distorting the phone speaker to a point where one must turn the volume down and then worry if you miss an operator finally responding. I add, that the music is cyclic and anyone who has a memory exceeding that of a gold fish must suffer the imprint. My day is ruined every time I make that call- my nerves shake – I suffer the stress of the process. I carry empathy for this single parents with screaming children at their side while they are put on hold, or those suffering mental stress etc. On the flip side, I will say that the service officers I have dealt with WITHIN the C-Link Offices have been excellent in their service. They can see the time wasted, the errors in the system- but as they say – there is nothing they can do. Pawns in the game. So to change my pension by an arguable $10 ( reporting investment changes etc) It consumes much of my time PLUS at least 45 mins of officers time. each time. ( and that is a monthly event IF you adhere to the 2 week notification rule ). The numbers do not add up. It is an inefficient system that wastes tax payers money. Managers should study how companies like Apple treat their customers.
Spot on. It’s a nightmare . I’ve been waiting 6 months now since applying for the age pension. It’s ridiculous. Centrelink needs a complete overhaul and their website and on line services are totally frustrating. So over it
Thank you for your comment Jo
I am 73 years old and have been waiting for 5 months since applying for the age pension.
It would be useful to know how many people experience a lengthy wait time.
I waited for three months with no income at all and then went and visited my local member. I got my pension and health care card the very next day.
Put in a complaint, Centrelink have 10 business days to respond. I did this and received a call in 5 days.
We were two very hard working people all our lives, got to pension age, went to Centrelink to apply for a pension and we’re spoken to like we had come to beg for money. As much as I thought my wife and I had done well in our lives, just having to deal with Centrelink reminded me how far we haven’t got.
We inherited, and adopted so much from the English , including our westminster system of parliament. We failed to adopt their national Health system, and the means test free aged pension. Over in the UK, the harder you work, the pore you are paid, thus you pay more into the National Health, Taxes and the National Pension system. No not here, we tend to flog the aged and punish us through such measures, as the “Means Test”(ie Mean Test), and then have the temerity to double tax us if we endeavour to do a bit of paid employment, via the tax system, and the double tax of the Pension Means Test.
Britain & NZ should be acclaimed for their benevolent sytem, yet here the inequality exists, whereby a retiring parliamentarian can get a huge pension, retire early, no means test appled, and we poor old mugs pay for it.
I remember when their was a bit of benevolence towards the aged people, who worked hard to create the society we enjoy. Then there was the relief of the Means test being lifted at 70 years of age. We are all dopes to allow this situation to occur, and its time that the entire system be worked over, and Centrelink be removed and placed in private agency, where there is less bureaucracy, no working from home, and productivity is rewarded. The entire thing is broken!!
I have to agree . It is a minefield with various conflicting bits of information. I don’t want to have to review advise rearrange. It’s exhausting and indeed makes one feel like “a beggar”. I keep waiting for “Big Brother Centrelink “ to tap me on the shoulder and “not good enough! Cough up! Who knows why?
Glenn was kind & Ken must be a bot. I could tell my story but everyone on here would be dead before I finish. Question: If Centrelink is doing a bang up job why do we have to ask for assistance from Retirement Essentials, who by the way should be the new Centrelink. It’s not the people working there, it’s the system folks. I feel your pain.??
I fully agree with all of the above criticism of CLink . I attend my local Neighborhood House which acts as a Centrelink sub branch. here the ladies are wonderful. if they do not know the answer to a question , they ring a “secret” phone number and have the answer within minutes. They happily upload any documents to CLink for us, and do so with a smile, not like the overworked under informed staff at our regional CLink office.
I have no experience yet in trying to obtain the Aged Pension but I have experienced Centrelink when caring for my parents. I worked full time, paid for careers when I could be there, updated the house so they could stay at home and paid the home related bills to make their super and pension go further. However, when it came time for my parents to go into a residential facility, I was not considered part of the household. When I asked (after 40 minutes waiting on the phone) I was told vary clearly by a Centrelink staff member, that why a friend in the same situation had a different assessment regarding her parent, that it purely depended on the person who processed the claim.
My experience transitioning from full time work to being on the pension has has clarified what it is like to become a second class citizen. I am appalled at the complete lack of compassion in our pension system and am now desperate to find work anywhere that might allow me to get off the pension!
Indeed if an automatic pension existed at age 65 or 67 (whatever) I bet it would be a cheaper system to run than the one now that requires experts such as Retirement Essentials to unravel unnecessary complexities that should not exist.
So many true stories above. My concern is that when I apply for my part aged pension on 7 July this year I may have to keep working until it comes through 5 months later as someone stated above rather than the 3 months later that it should be. Then Centrelink will not pay me my pension because I have worked to stay afloat until the pension arrives…abysmal. I’m worried about how to report earnings to as I plan to earn a few more dollars when I am on the pension. I’m confused as to whether it is $7800 or $11800 these days as I have read that this $4000 is just a one off…can I only earn $300 a fortnight or $453 a fortnight?
If I was to gamble my money away and choose overseas holidays or spend it on alcohol or cigarettes Centrelink does not care but the moment I help my children in any way (paying hecs fees, help with a deposit for a home) the restrictions are put in place by Centrelink and your virtually accused of money laundering resulting in a reduced pension for 5 years or maybe no pension at all. What a mixed-up world the pension qualifying system is.
I agree with people’s comments about dealing with Centrelink and how difficult it can be.
I have a part Aged Pension. I got an email today stating that my Assets had been reviewed as a twice a year routine item from 1st February 2024.
Email just stated my Total Assets were $xxxxx.
How difficult would it be for Centrelink to show a breakdown of how that figure was obtained?
I can get close within $20k, but how do I know if this figure is accurate?
I try to be honest and accurate, but I always have this lingering doubt.
So many truisms above, my wife and I finally received a part pension after 6 attempts. In the reply to the second application, Centrelink person only copied the figures from 1st rejection to the last cent. After pointing this out in online complaint I received a phone call the next day from a very apologetic Centrelink person who assured me this was unacceptable and I would be reevaluated straight away. I wasn’t expecting to receive a pension then as we did have a borderline share portfolio regards asset limits. Since then shares are down and asset limits have increased.
The pension application process is a disgrace. We chose to do it ourselves via the web based application form. Telephone support is a disgrace – we now drive to a local office for every interaction (and I should add that our local branches here at Woodridge are a model for everything Centrelink online should be – orderly queues with reasonable wait times, prompt service and friendly helpful staff)
Telling our experience would fill a boring book that would be painfully familiar to many here but suffice to say it involved 2 formal complaints (neither were acknowledged or actioned) and a complaint lodged with the Commonwealth Ombudsman ( who got back to us after several weeks advising us that it would be several months before our complaint was even assigned to a case worker for investigation.
In the end we got a phone call from a staffer in Sydney who said he didn’t actually work in this section but had been called in because they were “a bit snowed under”. He was well meaning but his knowledge of the system was such that he couldn’t even book us a face to face appointment on their booking system.
Hank Jongen is an affable, friendly guy overseeing the most dysfunctional system I have ever had the misfortune of having to deal with.