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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.
Centrelink’s so called ‘gifting’ being added to assets is an extremely complex, difficult and inhumane matter.
Is there a genuine appeal oricess? Does the department or the Minister have discretion in cases where ‘gifting’ is arguably not done to unreasonably qualify for the assetts/income tests?
Hi Jim, thanks for seeking clarity on how gifting works. Technically yes there are some scenarios where gifting can be appealed however it is very limited. For example if you have literally no other assets or income to live off and the gifting is the only asset being counted against you, then you can try to appeal it however even then there are hoops to be jumped through. If you explain your situation to Centrelink they will clarify whether the gifting can be exempt or not, you do not need to escalate the matter or get your local MP involved.
Hi
I am currently receiving a part age pension. How much am I allowed to earn from part time work each fortnight before I do not qualify for my part age pension.
Hi Geoff, thanks for reaching out! If you are single then you can earn up to $2,155 per fortnight but if you are in a relationship then you and your partner’s combined income needs to be less than $3,298 per fortnight. Always remember though, the deemed income from you and your partner’s (if applicable) financial assets is included in your total income assessment, not just employment income. You can learn more about deeming HERE.
I submitted my complete Age Pension documentation on 9 March and have still not received any information from Centrelink.
Hi Jennifer, thanks for reaching out! As you didn’t lodge your claim using our service we cannot comment on the progress of your application specifically however if everything was submitted correctly on 9th March then you definitely should have heard from Centrelink by now. I recommend you call their Age Pension line 132 300 ass soon as is convenient for you.
I applied for the pension but it was declined because I gifted three lots of $10,000 to my nieces and nephew when I sold an investment property 10 months before I applied for the pension… I was told this $30,000 would be counted as part of my financial assets for the next three years is this correct?
Hi Judith, thanks for your question. You are correct regarding your gift impacting your Age Pension. We actually wrote a separate article clarifying the gifting rules that you can read HERE.
If my bank account savings, super & shares have all decreased since I first applied for a part pension, do have to lodge a new claim, or just send them all of the up to date information?
Hi Dee, thanks for joining the conversation! Yes you should provide Centrelink with updated statements for each of your assets so that the values can be updated and your pension recalculated.
I applied for the pension but it was declined because I gifted three lots of $10,000 to my nieces and nephew when I sold an investment property 10 months before I applied for the pension… I was told this $30,000 would be counted as part of my financial assets for the next three years is this correct?
Is it possible to actually make an appointment to discuss applying for the Aged Pension rather than the on line Centrelink procedures
Hi Trevor, thanks for seeking clarity. If you wish to book an appointment with Centrelink then from our experience this is not possible. If you visit your local branch they will likely sit you down at one of their computers to complete the online application yourself. Here at Retirement Essentials do offer Phone Applications whereby you can book in a day/time for us to call you and we will go through the application with you. There are fees involved to use our service as we are a private company, we will send you an email separate to this comment with further details for you to consider and book.
I am presently appling for the pension and have been told numerous times my pension will be back dated to the date i applied true or false !
Every time i submit details i have to chase them as it just sits in the system !!!
Hi Hugo, good question to ask as the answer is not as straightforward as you would think. If you lodged your claim via physical forms handed in over the counter then you are correct that once you claim is approved, you will be back paid to that original date the forms were handed over as if you were approved on day one. This is regardless of the time it takes Centrelink to approve your claim or if you need time to collate your supporting documents after handing the initial forms in.
It works a little differently if you lodged your claim digitally via your online Centrelink account. If you lodge your claim online you must also provide all necessary supporting documents with the claim itself before Centrelink consider it “lodged” and your backpay starts.
Hi there.
How does centrelink work out asset values for investment properties. Is it from council rates etc
Hi Peter. Initially Centrelink take the property value you nominate and then may do a further assessment themselves. The asset value is then the property value less any mortgage against that property.
hi in regard to deeming – the link you provide does not include personal assets ( cars caravan home contents etc ) in the list can u clarify please if these are used in the deeming calculation – i was advised today by RE that they are included thanks
Hi Rod, thanks for commenting! Only financial assets that earn you a return (such as interest payments, dividends etc.) are deemed. Non-financial assets such as cars and contents that do not earn you any return for owning them do not have deeming applied.
I applied for the pension but it was declined because I gifted three lots of $10,000 to my nieces and nephew when I sold an investment property 10 months before I applied for the pension… I was told this $30,000 would be counted as part of my financial assets for the next three years is this correct?
Do centrelink keep track of gains/ losses in assets such as super balances? Super has dropped over the past year so will that be automatically factored in to adjust pension entitlements?
Kind regards
Hi Julie, thanks for getting involved in the conversation! If your super is held in a Self-Managed Super Fund then Centrelink receive no updates and you will need to let them know any changes up or down yourself. If you super is with through a retail/industry super fund though then your super company will update Centrelink in March and September each year on your new balances.
I have had a lot of trouble nailing down the way the total super balance, transfer cap ($1.7m) and the annual non-concessional contributions cap ($110k) combine and the transferring of balances between accumulation accounts and pension stream accounts. For instance, if you have the full $1.7m in a pension stream account and you earn interest but after deducting the 5% minimum withdrawal there is a considerable amount left in the account that exceeds the next years cap can you transfer the excess to an accumulation account? Does exceeding the transfer cap mean that you cannot make the annual n-c contribution ($110k)? If you already have accumulation accounts that in total exceed the transfer cap ($1.7m) can you still add to those accounts if you transfer some of the money to a pension stream account and how much?
Hi Geoff, what great questions! You would be best off speaking with our Financial Adviser who can clarify how it all works and your options moving forward. The consultation can be either online or via phone call, goes for up to 45 minutes and costs $150.
CLICK HERE to book now.
If you are well below asset and income limits and receive a full pension, is there any need to keep updating Centrelink on super balances etc? If your savings dwindle further it’s not as if you’re going to get a bigger pension is it! I understand the need to do this if you receive an inheritance, sell an asset or similar, but why bother otherwise? Likewise with gifting – if all I have in the world is $100,000 and I choose to give half of it away, it’s not going to make any difference to the pension is it!
Hi Robyn, thanks for taking part in the conversation! In theory you are correct, once you are on the full pension then further reductions will not get you any extra. However we recommend you do still notify Centrelink of significant reductions to your balance and/or gifting as it will make your life easier should you have any significant increases later on.
For example. if Centrelink don’t know your bank balance has reduced by $100,000 then when you come back later to let them know about your lotto win of $500,000 they will be adding that extra balance on top of an incorrect figure. This can be resolved but only through more mucking around from yourself now having to provide old statements and clarifying where the $100,000 went.
This is why we recommend keeping Centrelink updated as soon after any significant change as is practical. It is fresh in your mind, easy to provide the necessary documents and saves you hassle later on down the line.
Hi there, last year I received the following income from an estate inheritance.
$6712.00 – Partnerships and Trusts
$107,817.00 – Distribution – Non-Primary Production Income Franked Distribution from trusts
$35,736.00 – Share of Franking Credits
This year would be similar.
My wife receives no such income.
Does this type of income impact my ability or my wife’s qualification to receive an aged pension, or Commonwealth Seniors Health Card (CSHC)?
We have no other assets or income.
Hi Peter, thanks for seeking clarity! Centrelink assess you as single/couple based on whether or not you are in a relationship, not who is applying or who earns the income/owns the asset. Therefore you and your wife would be assessed as one entity and yes your income does impact your wife’s eligibility. Based on the figures you provided your wife would be assessed as exceeding the income threshold for the Age Pension and/or Commonwealth Seniors Health Card.
Hi, Prior to retirement on the 1st July this year, I have cleaned up all our miscellaneous bank accounts so that there are only 2. One of them is joint where any income is received and expenses paid (usually to pay off balance due on credit cards). When we switch to pension phase and draw an income, this money will flow into that account also. My question is, the bank balance on our joint account is going to go up and down (sometimes down close to zero). How often do we need to report these balances that are going to fluctuate. The other account (my partners) is likely to steadily increase albeit at a low rate.
Hi Peter, great question! Centrelink’s position is
“It is optional to notify us of a small change to your:
car, boat, real estate or personal effects of $1,000 or less
shares, investments, bank balances or loan of $2,000 or less.”
Ergo any changes in your bank balance of more than $2,000 should be reported. Having said that, fluctuations do happen and you can use the net balance as a guide. For example if your balance increases by $2,500 but you pay $1,500 worth of credit cards and other bills over the next week, you would not be penalised in this scenario.
There is no set frequency that you must update Centrelink but be mindful that if you take too long to report a substantial and sustained increase, you may be overpaid and asked to repay the extra pension received. On the other hand if you asset balances reduce and you do not notify Centrelink, they will not backpay pension you were entitled to because the onus is on you to tell them when things change.
Good morning Steven
I’m about to lodge my age pension application as I retire on 28/6/2022. In the application it only provides an answer for do you work and what is your gross income – with no provision to state you intended retirement date. By the time they assess my application, I’ll be retired. I’ve received 2 contradictory pieces of advice from Centrelink – one to state no income and the other to provide the income at present time. Can you please advise my best approach
Hi Rae, this is a good question that comes up a lot! As Centrelink will assess and back pay your pension as of the day you lodge the claim, you need to declare your income and assets as of that day. Should you be working on the day you apply and then retire before you are approved you can easily give Centrelink evidence of your resignation so they know not to factor in any income moving forward but they can include it when calculating your back pay.
…and one more question please Steven…
My husband is 4 years younger than myself and still working. He’s a sole trader/franchisee and sometimes he receives quite a large remittance, but for months it may only be trickles of income. If the majority of any large remittance is paid into his super and a claim for tax deduction submitted, will that impact my pension if the income, (once super is paid), remains below $3298.00 for the fortnight?
Hi Rae, sole trader income is assessed a little differently, I recommend you review Centrelink’s guide to understand what your husband will be assessed as earning.