Centrelink gives pensioners a lift

HAPPY new financial year – it’s especially good for pensioners because the threshold numbers have changed, which may well mean an increased pension.

From July 1 a single pensioner who is not working can earn $168 a fortnight and still be eligible for the full single pension of $888.30 a fortnight, including all supplements.

Once income exceeds $168 a fortnight, the pension reduces by $0.50 for every additional dollar earned.

But working singles and couples can also earn $250 a fortnight each from personal exertion – this is exempt for the income test.

A pensioner couple can earn $300 a fortnight (combined) and still be eligible for the full pension of $1339.20 a fortnight, including all supplements.

Once income exceeds $300 a fortnight the pension reduces by $0.50 for every additional dollar earned.

From July 1 the full pension is available, under the assets test, for home owner singles whose assessable assets are under $263,750 – for home owner couples the number is $380,500.

The numbers for non-home owners are $456,750 and $583,500 respectively.

Once assessable assets exceed the lower threshold, the pension reduces by $3 per fortnight for each $1000 by which assessable assets exceed the lower threshold.

A single home owner can have up to $550,000 of assessable assets and receive a part pension – for a single non-home owner the lower threshold is $753,000.

For a couple the higher threshold goes to $827,000 for a home owner and $1,030,000 for a non-home owner.

The deeming rates have changed too.

For a couple, they are now 1.75% on the first $83,400 and 3.25% on the balance.

For a single pensioner, the first $50,200 is assessed at 1.75% and the balance at 3.25%.

The assets that are subject to deeming include bank accounts, shares, managed funds, insurance bonds, debentures, superannuation when the owner has reached pensionable age, and deprived assets such as excess gifts.

To check out your own situation go to my website www.noelwhittaker.com.au and have a play with the deeming and age pension calculators.

Use the deeming one first. Understand how the system works to maximise entitlements.

A mistake is valuing furniture and cars at replacement, when all Centrelink needs is garage sale value.

If you are asset tested, every $10,000 of assets cut is worth $780 a year in pension.