Join Now
Unlock unlimited access to all our content and get great discounts by purchasing a membership now
Learn more ….
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.
Are relationships such as brother and sister, mother and daughter etc classed as singles or couples..?
Hi Dagmar, Centrelink class couples essentially as two people involved in a romantic relationship. Family members who live together are not considered to be couples.
It should never be forgotten that other people’s taxes fund the Age Pension and associated supplements so the rules are necessary to ensure the best use of Taxpayer’s money.
As with any welfare payment, Age Pension is based on need. It’s fair and reasonable to expect anyone benefiting from Taxpayer funded payments to be honest and transparent about their situation and clearly demonstrate their need for the payment.
The aged pension is not charity from put upon current tax payers to recalcitrant and shifty old people as you portray it. It is a return on pre-paid contributions, paid into the system by these people as part of their taxes and other charges throughout their working lives. The current transport infrastructure you use, the civil infrastructure you use, the educational infrastructure you have benefited from were all paid for by the very people you affect moral superiority over.
Thank you Phil!! Took the words right out of my mouth. How many times do I see the current govt describe the Aged Pension as ‘Welfare’. Just! Plain! Wrong!
These rules seem unnecessarily complicated.
I had anticipated a simple life when I retired this is not to be it’s much more complicated.
Ken Cochrane
Ken I agree with you. I expected to have an easy life for my partner and I. What do we get overly complicated forms to fill out and time consuming waits on the phone. Why is it so hard to give the very people who paid taxes all their lives so we can get the pension (which we have paid for all these years). I feel the system needs to be “fixed” so that it is much easier to get the age pension. I don’t care about asset tests etc if you have millions or if you are broke you have paid the corresponding amount of tax to conform with your income. So where’s the problem. Pay us all the same rate as soon as you stop work and apply. So what if some people have more money in the bank than others. Pay everyone the same, single or couple. We’ve paid for this and we are entitled to it. Sorry for the rant but I am p…ed off with the way this works.
I AM 90y.o., and wife 88. Both on minimum age pension. She has ~$33,000 in bank plus share of household assets for pension purposes. She exceeds Level 4 Alzheimers, and severe osteo, so beyond helpless. There is technically $52,000-p.a. available for carers and other needs, but a very large portion of that goes in “administration” charges. But why she is forced to receive almost no Age Pension, because of my cash assets seems inequitable. I will always care for her but hope not to be forced to divorce her, but live under the same roof?
Hi Trevor, I’m sorry to hear of your wife’s condition but commend you on your commitment to caring for her. As you have said Centrelink will assess and pay each of you as a couple regardless of your individual income/assets. Depending on the level of support your wife requires if she were to move into an aged care facility then the two of you may become eligible to be assessed as a couple separated due to ill health which has a higher pension amount. There would obviously be a number of factors to consider though so this is general information only to help inform you on your options.
What is the situation if you are in a de facto relationship (long term) and your partner , although would easily qualify for a full pension, is philosophically opposed to government help, and definitely does not want to apply. Also does not want to be on the form I send, can I then apply for couple rate but just for one person??
Hi Barbara, that’s quite a unique position you have explained. In such a scenario Centrelink will still class the two people as a couple. Therefore without the philosophically opposed person’s details their partner will not be able to get approved for any pension.
Probably not so very unique. It’s a tough one. Everything else in the modern age (eg ability to own assets, other income, taxes) is per individual, not contingent on family status. Seems positively feudal!
Very confusing we don’t need this at our age.
Honestly, I don’t believe these rules are fair and necessary. If you’re self funded retiree, this is designed to place the person /partner who is entitled to receive a single pension under your financial umbrella. We were all working hard and paid our taxes and if, towards the end of our life, one wants to partner with someone – should our Government use our money to pay for this choice? This is in place to accelerate use of savings / Superannuation with a hope that we die in the process and the Centrelink will not have to pay a cent.
Yes it seems unfair and complex and we pensioners really do not have it explained in detail when we retire… i need monies to fund my house upkeep / maintenance , or indeed a new car for travelling but not sure what i can draw down for my super with losing a lot on pension pay ment s..
Grieves me when I have to pay someone to explain rules that are directed at me in the first place. Aged pension, SMSF, aged care fees, Centrelink and personal tax. Agree with Ken above; it’s not retirement but a bureaucratic battle. Sick of the whole system and needs to be drastically cleaned up.
Totally agree Arctium Centrelink and the Government make it so difficult and expect you to update them every time you sell a few shares or buy a new car or use some of your savings to pay bills or repairs on your house. I find it extremely stressful and demeaning and very overcomplicated and the sad thing is I think they do it on purpose in an attempt to drive you to an early grave so they can save a few dollars!
Unfair, complicated, anachronistic. I have been financially independent my whole adult life and have never expected a man to support me. I have had romantic companionships at various times, but never shared a bank account or any assets (other than a fridge and washing machine when living under the same roof). Any household expenses are split evenly as do share households, and I don’t have any children. If Centrelink assesses one of these as being “a couple” I feel it can jeopardise my independence and pave the way for such a companion to possibly make a claim in the future on 50% of my assets in the family courts. Scarey!
Do I need to live alone and be sure never to have any hugs or cuddles?!?!
Jen this is a common problem but you may need to get a “Co-habitation Aggreement” drawn up by a solicitor. You decide on the terms of that aggreement that suit both of you. This protects the assets of both of you.
It does not matter about whether you can manage or not centrelink does not care. It is an section of the government that is there to reduce payments to people who need it. I paid taxes for fifty one years before going on a pension. I got the single rate as I was divorced.
I decided to move interstate so I sold my house. Big mistake. Centrelink quickly applied deeming rates of 2.25 percent. The most I got for my money in the bank whilst I purchased another house was 0.25 percent. I got $1239.74 interest. The government took $7,171 from my years pension. This left me $5,931 short after applying interest. Fortunately I lived with family for twelve months. I am well within the assett test but am struggling to get my pension back.
hi. my husband is on pension, centrelink put us on section 24 which he’s getting paid as single rate, my question is can i work? is there any minimum earnings only i get so his pension will not be affected?