Reporting Income
Reporting income can be a minefield for those on an Age Pension or those who may be entitled to one in the near future. The difficulty for many is that it is less than clear which income is reportable to Centrelink – and how and when you need to do this. Additionally, uploading information online is not always as straightforward or intuitive as some organisations think. Today we share some recent Q&As on reporting income and how it works in the real world.
Q. Leanne:
I’ve just received my superannuation statement. Does this need to be forwarded to Centrelink now or will they request it? I can’t see anywhere on the Centrelink website to upload it?
Thanks
Our answer. Centrelink won’t request the document from you, so it is best to take the initiative and upload it yourself. When you log in to your online Centrelink account you will see an option in the top right hand corner that says ‘Documents and appointments’ which, if you click, you will then see the ‘Upload documents’ option.
Q. Geoff:
I am very confused. I have recently received my half yearly ‘Income Payment’ from my Account Based Pension which is paid into my bank account. Do I have to report this to Centrelink as income?
Meanwhile, my Pension & Super values have dropped a lot since I started to receive the Age Pension in earlier this year. Do I need to resubmit my bank statement and the pension valuation to Centrelink?
Our answer. The good news about Account Based Pensions is that these income streams are treated as assets and assessed based on the total balance available in the account, not the amount you are paid from it. Therefore you do not need to declare the payment you received as it is not considered income. Regarding your super balances it is definitely a good idea to give Centrelink updated balances of these and all other assets such as bank accounts, cars etc. so that Centrelink can more accurately calculate how much Age Pension you are entitled to. If, in fact, your superannuation has decreased, you could be entitled to a higher Age Pension, so this is an incentive to keep your records up to date.
Q. Fiona:
I have recently received a tax refund. Do I need to report this as income?
Our answer. Tax refunds are not considered income for the purposes of Age Pension testing, so it is not necessary for you to report this.
Q. James:
How often should I advise Centrelink of changes to assets, ie share holdings and bank accounts?
Our answer. The important thing to know about updating your assets with Centrelink is that they will only update/recalculate based upon changes you advise and nothing else. Ergo, if you update the balances of your bank accounts only, Centrelink will not check on the share prices nor will they presume a decrease in the value of your car or consider any other changes that could have occurred.
As we’ve discussed before, the difference between assets and income (and therefore what is reportable) can be very confusing. There are also penalties for misreporting or failing to report, so there is a lot at stake. If you would like support from our qualified financial advisers on your specific income or asset concerns, tailored one-on-one advice consultations can provide a timely solution. Also, don’t forget that if you are employed and on the Age Pension you need to report your employment income to Centrelink on a fortnightly basis.
This article is provided by Retirement Essentials Representative Number: 001260855. We are an authorised representative of SuperEd Pty Ltd ABN 88 118 480 907 AFSL #468859. This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read the relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.
Hello
My husband is on the pension. I am not of pension age yet but understand that my income and assets are considered in the calculation.
I have just got occasional job where on average I might work 1 day every 3 weeks – earning only about $140. I can’t see on the web site where to update that information. Would you kindly let me know how to do this?
Cheers
Hi Jan, well done for trying to proactively resolve this issue yourself however you will need to call Centrelink on 132 300 so that they can ‘turn on’ the income reporting function so that you can begin declaring what you earn each fortnight.
Thank you, I find the information on this forum very enlightening and useful. Please keep up the good work.
Brilliant thank you so much incredibly helpful! I so look forward to your weekly info!
My wife and i receive the full aged pension plus a DVA disability pension
My wife will shortly receive an inheritance of approximately $ 260,000
Please correct me if I am wrong , I understand that if she deposits this amount into her accumulated super scheme she does not need to declare this money to Centrelink
Whilst her age is 61 she qualifies for the pension because i receive the DVA disability pension
If she decides to withdraw this money at a later date as a on off withdrawal to help pay for a new retirement home does she have to then declare the balance to Centrelink
Hi Chris, great question! We actually have not come across this scenario previously whereby someone under Age Pension age is eligible and receiving the Age Pension so we do not have any first hand experience. Centrelink’s website only covers the standard scenario of a younger partner not being eligible. Technically, based on Centrelink’s wording of “superannuation investments if you are over Age Pension age” you are correct, if your partner is under Age Pension age their super in accumulation is exempt however her receiving the Age Pension already may over-rule that. Best you call Centrelink on 132 300 to be sure.
Very helpful however still unsure whether I need to report employment income when my part pension continues to be determined under the assets test. When my pension was approved I wasn’t working but will be soon, however I won’t earn enough to bring the income test into play?
We had a property in Canada
Centerlink knows about the property and is in the assets declaration
Back in May we had a major break-in and on the 7 october they [insurance company settled $28,0465
This was the cost to fix and replace what was stolen and damaged
Do i need to report this to Centerlink?
I believe that it is not additional income as this is what it would cost to replace and fix up the cabin?
Could you advise us
Hi Mike, you are correct! Although you did get a large increase to your bank balance you then spent the money fixing and replacing what was damaged. You would only need to declare to Centrelink if you spend less than you were paid and therefore the net result is you have more money in your account.
There is no option to upload documents on my online Centrelink account.
The search facility does not lead to Documents and Appointments either.
The top right location you cite for uploading documents on the Centrelink website is not there.
Could you perhaps check and confirm.
Hi Mira, unfortunately we cannot post pictures in these comments to show you specifically where to go but can assure you that if you are logging in to your online Centrelink account using an internet browser (it is different if you use the app) then the menu option “Documents and appointments” is definitely there in the top right hand corner.