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James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
does superannuation affect your amount of pension you get ,and do shares affect your pension amount fee brunjes
Hi Fred
Super and shares are all counted as assets and are definitely included when Centrelink calculates your eligibility for the Age Pension.
My husband and I are separated (not divorced). He lives in the family home and I live in our second home that was previously an investment property earning income. Both houses are in joint names. Will the house I’m living in be considered an investment?
Hi Debbie
We don’t believe that the house you are living in would be considered an investment property due to the circumstances you outlined. You will need to notify Centrelink of your separation, that the house that was once an investment property is now your principle place of residence. This evidence should then result in you being assessed as a homeowner for Centrelink age pension purposes if you meet the age pension eligibility requirements.
Hope this is of assistance.
I own an investment property and have built a granny flat on the back of the property. The main house is rented out and I’m now retired and living in the granny flat. I have been told the entire property is assessed as an investment property even though I’m living in the granny flat. If this is the case then is it correct that I would be assessed for the pension as a non-homeowner?
Hi Cilla. Your situation is a little more complex than normal and we aren’t aware of all the facts in your circumstance. Typically someone in this situation would be assessed as a homeowner as their name is on the title and there is only the one title covering the house and granny flat. The property would be their home not an investment. The person would also have to declare the rental arrangement via a form of rental certificate.
Hi James, I own and live in a duplex. My x husband lives in the other one rent free. The duplex is on one title. WILL Centrelink view this as an investment? I am 67 and considering retirement, have $530000 in super.
My x is on a disability pension and has lived there for years, he stoped paying me rent a few years ago when the mortgage was paid out. I also get a careers allowance for him.
Will I be able to get a part pension?
Hi Joy,
This should not count as an asset as there is only one title document and you are not receiving rental income.
You may need to complete a “Separated under one roof form” with you and your ex husband as you share a property but can show on this the separate living quarters, etc.
We are considering having a new house built on a block of land we own. We cannot get a bridging loan so we will need to sell our existing house to pay for it and will live on site whilst it is being built. The problem is that once we have sold our current home and have the capital in the bank, it will be included in our assets and will wipe out our partial age pension.
Could we set up some sort of trust account with the builder for the full cost of the new house and then draw down the staged payments as the build progresses? If not, what other options are there?
Hi Lynne, thank you for reaching out for assistance. The good news is that Centrelink do appreciate situations such as yours and actually give you a 12 month exemption whereby the amount of capital from the sale of your former home, which you intend to spend on building the new home, will not be counted as an asset. You may still see a change to your pension if you are being assessed based on your income rather then assets. Although the amount is exempt from your assets it is still deemed to earn income thus your total income earnings will increase which could cause a reduction in your pension.
We are thinking of building a granny flat on the top floor of our exiting primary residence. Our name is on the title and the flat won’t be rented out. Does this impact our ability to qualify for the aged pension?
Hi John, great question! As the house you live in is exempt from the assets test, you can increase it’s value without impacting your Age Pension eligibility. If you were to start renting any part of your house out, either the granny flat or main house, then you would need to declare the details to Centrelink and the income may impact your Age Pension.
Hi Steve, I am building a new home which will have a self contained studio built in at the front of the residence. This will all be contained under the main roof and will not be a free standing “granny flat”. I have now reached retirement age and will at sometime qualify for a part pension. I understand that when I rent this self contained studio I will have to declare rent paid to Centrelink as income. My question is will that portion of my principle place of residence be classified as an asset.
Regards Stewart
Hi Stewart, great question, these situations can be tricky! The portion of your primary residence that is rented out would NOT be considered an asset. There are some scenarios where a portion of a private residence can be considered an asset so it is good that you are mindful but in this scenario it does not impact you.
Hi Steve, I have build a granny flat in my backyard it cost me around 160k to build,and i am renting it out at the moment but later on my family member (son) will be shifting into it
My question is this granny flat is a asset? and how much will be the value conceederd by center link while i am renting this ? is it 160 k or more .
and will it be still asset if we are not renting it out .
Thank you
Regards Jagdish
Hi Jagdish, thanks for seeking clarity! Presuming the granny flat is on the same title as your primary residence (as in you could not sell one without the other) then the granny flat is not considered an asset. The rental income you receive does need to be declared to Centrelink and will likely impact the amount of pension you receive but the cost/value of the granny flat will not.
i am wanting to buy a duplex. I am retired. I will be living in both residences as i need one place for when family comes to visit. Will this be counted as an asset in determining age pension?
Hi Geoff. It depends!! Some factors to consider include whether the duplex is on one or separate titles. If on separate titles then one will be considered your home and the other an investment asset.