Pensions – Centrelink – New Asset Test Levels and taper rate that could reduce the pension received

Pensions – Centrelink – New Asset Test Levels and taper rate that could reduce the pension received

Centrelink – New Asset Test Levels and taper rate that could reduce the pension received

If you receive or are about to receive an Australian Government pension, there are new asset test levels and taper rates from the start of next year 2017 you need to know about, which could reduce the pension received, as explained at the Humans Services website.

From the first of January 2017, the assets test free area will increase, which means you can own more assets before your pension is affected.

The new asset test free area will increase to:

  • $250,000 for a single homeowner
  • $375,000 for a homeowner couple
  • $450,000 for a single non-homeowner, and
  • $575,000 for a non-homeowner couple

This means some may get more in your pension.

At the same time, on the other hand, the taper rate for pensioners will also increase. This will see a reduction in payments for some, while others may have their pensions cancelled.

The family home is still exempt from the assets test.

Asset limits for allowances will also increase. There will be no reduction or cancellation of allowances as a result of this change.

Read more about the asset test limits.

How the change will work

At present, for every $1000 of assets you own above the assets test free area, your pension is reduced by $1.50 per fortnight.

From the first of January 2017, this doubles, to $3.00 per fortnight per $1000.

If your payment is cancelled on the 1st January 2017 as a result of this change, you’ll automatically get a Low Income Health Care Card. If you’re over age pension age, you’ll also get a Commonwealth Seniors Health Card. In this instance, you’ll not have to meet the usual income test requirements for these cards.

Pension Bonus Scheme

If you’re registered for the Pension Bonus Scheme, your bonus depends on the rate of Age Pension you’ll receive when you claim it. This rate may be different before and after 1 January 2017. You may wish to consider this if you have flexibility as to when to claim.

Read more about the Pension Bonus Scheme.

Aged Care Fees

This change may affect your government subsidised aged care fees. This is because your income, including your pension, affects your fees. If your pension is reduced or cancelled, we’ll send you a letter. You’ll receive a separate letter if your aged care fees change.

Read more about aged care means test assessments.

To read more and see a video or transcript explaining the changes, go to this Humans Services website page.

Get our FREE Expert Guide – Self-Managed Super and You – it has all the info you need to know, with bonus TIPS and CHECKLISTS  to determine if SMSF is for you and what steps are needed to set up. It also gives you ALL the Aust Tax Office publications about SMSF. Get your copy now – click Free Download top right hand side above. You’ll also get monthly SMSF news, investment teaching and upcoming seminar and workshop briefs! Download your FREE Guide now!


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in 2 Past Newsletter Topics, Centrelink, Pensions / Income Streams, Retirement Planning and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s