As usual your prompt and careful response is appreciated.I wish your office was around when I applied for the pension and wanted information like this and your website.thank you for this service
We are thinking of downsizing. Selling our home which is mortgage free, renting for 6 to 12 months, and buying again. The reason for renting is in the hope that the housing market will come down again. We have a small superannuation which we draw down on every month and receive a part age pension.
How much are we allowed to have in assets before we lose the age pension?
Hi Heather, please CLICK HERE and you will see a summary of the asset thresholds applicable to you as a homeowner and also whilst renting.
To talk about your situation in detail, we offer 30min consultations at a cost of $75. We can clarify how Centrelink will assess you specifically and help guide you on any related matters that might impact your Age Pension. If you wish to proceed please CLICK HERE to book the best suitable time available.
We have decided to downsize our car due to difficulties with steering, parking & the size of our one car garage in a retirement village. We expect to get $50,000 for the sale of our car which is 15 months old & valued at $50,000. The smaller, new car will cost us approx. $38,000. So there could be a difference of $10,000 in the change over. We get the full aged pension & an annuity which is within the guidelines of the income test. We meet the assets test. Our assets including our current car are worth $300,000. Will we have to declare this as a profit or will it affect our pension income from Centrelink?
Hi Christine. The additional $10,000 will be treated as an asset, but so was your previous car which you valued at $50,000, so your total assets will still be around the same level. From what you have said you will still be well below the minimum assets threshold of $419,000 for a homeowner and $643,500 for a non homeowner so your pension payments shouldn’t be affected at all.
My father is considering selling his vehicle valued at $20,000 and not replacing it.
He currently receives a part age pension and income from an annuity and super. His assets are below the minimum assets threshold.
He will add the $20,000 to his savings. Will Centerlink treat this sale as income ?
Hi Elizabeth, thanks for reaching out for clarity! The sale proceeds will only be counted as an asset, not income. It is best for your dad to show Centrelink a receipt from the sale as well as a bank statement so they can update his asset balance but also remove the car from his assets.
Hi Philip, thanks for reaching out! You need to declare to Centrelink the car’s re-sale or trade-in value. Usually this would be the same as you purchased it for but if you did happen to get a great discount you may need to declare the actual value. You would provide Centrelink with a copy of the invoice to show how much you paid and as evidence your old vehicle is no longer in your possession. We recommend you use the event to update all of your asset values and give Centrelink more recent statements for your bank accounts, super, shares etc. so that your assets are up to date and your pension is calculated correctly.
As usual your prompt and careful response is appreciated.I wish your office was around when I applied for the pension and wanted information like this and your website.thank you for this service
Thank you for your kind words.
We are thinking of downsizing. Selling our home which is mortgage free, renting for 6 to 12 months, and buying again. The reason for renting is in the hope that the housing market will come down again. We have a small superannuation which we draw down on every month and receive a part age pension.
How much are we allowed to have in assets before we lose the age pension?
Hi Heather, please CLICK HERE and you will see a summary of the asset thresholds applicable to you as a homeowner and also whilst renting.
To talk about your situation in detail, we offer 30min consultations at a cost of $75. We can clarify how Centrelink will assess you specifically and help guide you on any related matters that might impact your Age Pension. If you wish to proceed please CLICK HERE to book the best suitable time available.
We have decided to downsize our car due to difficulties with steering, parking & the size of our one car garage in a retirement village. We expect to get $50,000 for the sale of our car which is 15 months old & valued at $50,000. The smaller, new car will cost us approx. $38,000. So there could be a difference of $10,000 in the change over. We get the full aged pension & an annuity which is within the guidelines of the income test. We meet the assets test. Our assets including our current car are worth $300,000. Will we have to declare this as a profit or will it affect our pension income from Centrelink?
Hi Christine. The additional $10,000 will be treated as an asset, but so was your previous car which you valued at $50,000, so your total assets will still be around the same level. From what you have said you will still be well below the minimum assets threshold of $419,000 for a homeowner and $643,500 for a non homeowner so your pension payments shouldn’t be affected at all.
My father is considering selling his vehicle valued at $20,000 and not replacing it.
He currently receives a part age pension and income from an annuity and super. His assets are below the minimum assets threshold.
He will add the $20,000 to his savings. Will Centerlink treat this sale as income ?
Hi Elizabeth, thanks for reaching out for clarity! The sale proceeds will only be counted as an asset, not income. It is best for your dad to show Centrelink a receipt from the sale as well as a bank statement so they can update his asset balance but also remove the car from his assets.
Hi, I have just purchased a new car for $47k then stamp duty etc is added on. Also, mats, dash cam bringing total to around $50k.
Do I include the stamp duty etc to the cost when informing Centrelink of the purchase.
I put my previous car in for part exchange for 16k and took the reminder from declared savings assets.
Hi Philip, thanks for reaching out! You need to declare to Centrelink the car’s re-sale or trade-in value. Usually this would be the same as you purchased it for but if you did happen to get a great discount you may need to declare the actual value. You would provide Centrelink with a copy of the invoice to show how much you paid and as evidence your old vehicle is no longer in your possession. We recommend you use the event to update all of your asset values and give Centrelink more recent statements for your bank accounts, super, shares etc. so that your assets are up to date and your pension is calculated correctly.