Assets, income and their effects on service pension

I read your column regularly and was writing as a followup to a question you recently answered. I am wondering if I/we are eligible for the age pension also. Similar situation – my husband receives TPI pension and part service pension (because it’s income and asset tested). I get a carers allowance (from Centrelink) and part service pension (from DVA). My husband is 77, I am 73. We get about $60,000 in total – and was surprised they get total of about $86,000? So I am asking, as I noticed you didn’t query monies from DVA and also the full pension they receive (presume age pension).

Could the difference be that they get the full DVA service pension? But it seems a lot and I was always led to believe you couldn’t get both. Would appreciate it if you could let us know?

The Department of Veterans’ Affairs (DVA) TPI pension is payable for the life of the recipient and is neither taxed nor means tested.

It is paid on a fortnightly basis. The DVA service pension (or DVA age service pension, DVA invalidity service pension or partner service pension – depending on the way you qualify) is an income support payment, meaning your income and assets can impact how much is paid.

The carer allowance is paid to carers to assist with any additional costs on top of usual costs of daily living.

It too is not means tested. The amount of DVA service pension you are receiving will depend on your assets and income, and without knowing these it is impossible to advise as to whether you are being correctly assessed or not. If in doubt, contact DVA and ask them to check for you.

I have been getting a partpension for two months (about $830 a fortnight). I have not started an allocated pension with my super yet. I want to take out $25,000 to buy a car. Does taking this money from my super and paying the car out immediately mean my pension will likely stay the same. I will have less in super but a $25,000 asset I need to report. I assume one balances out the other?

Any material changes to your financial position need to be reported to Centrelink, including drawing a lump sum from super to buy a car. The net result may be the same (from an asset test point of view) however, your incometest assessment would be different because your super portfolio, and ultimately your allocated pension, would be deemed. By reducing the balance of your super, you alter the potential deemed income from this investment for income-test purposes.

I encourage clients to use the Centrelink portal on their MyGov account (online) as much as is possible – it’s the quickest and easiest way to keep Centrelink abreast of changes in circumstances.