Changes to the Age Pension
Written and accurate as at: Oct 05, 2016 Current Stats & Facts
The changes to the Centrelink Age Pension Assets Test announced in the 2015 Federal Budget are now law, and will take effect from 1 January 2017. The most significant change is a reduction in the level of assets pensioners can have before they lose their entitlement to Age Pension.
If you are presently in receipt of the Age Pension, your entitlements may change from 1st January 2017!
The impact of these changes will be determined by the level of your assets, income, home ownership and relationship status; broadly
* If you currently receive the full age pension, these changes will have no impact on you.
* For ‘single pensioners’ with Centrelink Assessed Assets of more than $250,000, the change may significantly reduce your Age Pension.
* For ‘couple pensioners’ with Centrelink Assessed Assets of more than $375,000, the change may significantly reduce your Age Pension.
* If you do not currently receive any age pension because of the level of your assets or income, these changes will have no impact on you.
The thresholds are slightly more generous for non-homeowners. There are a number of strategies at our disposal that may assist you in maximising your Age Pension entitlements including:
- Superannuation accumulation accounts (spouse under age pension age)
- The purchase of annuities
- Superannuation pension strategies
- Funeral bonds/prepaid funerals
- Gift to dispose of assessable assets
- Value assets correctly
- Spend money on a holiday or home improvements
We strongly recommend seeking personal financial advice before implementing any of these strategies.
If you, or someone you know, would like to find out more about the changes and how they may impact Age Pension benefits, call 02 6024 3000 to make an appointment to discuss.
