Centrelink & Pensions

Welcome to the YOURLifeChoices Centrelink & Pension Page. With so much information out there, we know you want a simple and easy way to find everything easily, and we have provided that! Stay up to date with the latest Centrelink News.

Our Age Pension page has a vast range of information covering eligibility ages to Bonus Payments.

We have not forgotten those on the Widow Allowance, Disability Support Pension (DSP) and those receiving Carer Payments, with information updated weekly.

Pension payment complaints

YOURLifeChoices website is happy to ask questions on your behalf about entitlements and benefits. Read some recent Q&A on pensions here. But if you have a specific complaint it is probably best to approach Centrelink directly yourself. 

Pensions, Payments, Allowances and Tests

Age Pension age for social security purposes is 65 years for men. Women qualify at different ages depending on their date of birth in accordance with the table below so by 2014 the minimum qualifying age for women will also be 65 years.

Beginning in 2017, the Age Pension age will be increased to 67 years at a rate of six months every two years as indicated in the following table.

The qualifing age for male veterans with qualifying service and a service pension is 60. For female veterans the pension age is being raised by six months every two years so that by 1 July 2013, female and male pension ages will be the same; see the table on our Veterans’ Affairs page.

Visit this Centrelink page for information on the Age Pensions and other pensions, Income and Assets tests, Carer Payment, Rent Assistance, other allowances and benefits, age pension eligibility and other qualification information.
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The Disability Support Pension is a payment for people whose physical, intellectual or psychiatric impairment prevents them from working, or for people who are permanently blind. For eligibility conditions, amount of pension, claiming and other information go to this Centrelink page:
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Check this Centrelink page for a guide as to what are considered assessable assets under the asset test:
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You can also check what assets are exempt. Note this includes "your principal home and curtilage (the land around your house you use for private purposes) of no more than two hectares". If the area is more than two hectares the excess is included as an asset.
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If you are receiving a payment through Centrelink and you are planning to go overseas, including Norfolk Island, call Centrelink because while away you could be overpaid or your payment could be stopped. If you are receiving a pension, phone Centrelink on 13 23 00. Veterans’ Affairs pensioners should contact their DVA office (click here). Note that from 1 July 2004 there is provision that payment to any Centrelink customer can be suspended or cancelled while overseas if Centrelink is not notified. Also, from 1 July 2004, you cannot receive a Centrelink payment for more than 13 weeks overseas (this excludes Age Pensioners and entitled wife and Widow B Centrelink customers).
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Guide To Australian Government Payments Booklet The Guide To Australian Government Payments gives details of the payment rates and eligibility criteria for all payments made by Centrelink and the Family Assistance Office. It is updated quarterly to reflect any changes in payment rates during this time.
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Compensation If you can claim compensation for an injury or illness, you should be aware that Centrelink will take it into account when determining eligibility for most payments. The booklet Compensation Kit 2001-2002 Bookletcontains essential information on how compensation affects social security entitlements; choices for rehabilitation; review and appeal rights; and specialist services for a person claiming compensation. You can get from Centrelink or download it from this site:
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Data matching is a program used by Centrelink and the Department of Veterans’ Affairs (DVA) to compare information with each other and with the Australian Taxation Office. Its purpose is to ensure that pensioner payments are correct. If you fail to tell Centrelink or DVA about changes to your financial situation you could be missing out on a higher rate of pension or you could be receiving too much and it will have to be repaid. For more information see What should I do if my circumstances change?
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Gifting. Before 1 July 2002 your payment was not affected if you dispose of assets or make gifts up to $10,000 in one year. From 1 July 2002, the $10,000 annual limit still applies but there is also $30,000 limit over rolling five year periods. If you exceed either limit the excess amount will remain considered as a financial asset for a five year period and deemed income rules will apply. Find out more:
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Income support payments. You may have been eligible for payments such as Mature Age Allowance or are eligible for Newstart. In return, you may have to meet obligations such as training or community work. Mature Age Allowance cannot be claimed from 20 September 2003 but if you were receiving it before then the payment may continue. For information on the Mature Age Allowance:
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For information on the Newstart Allowance:
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Investments such as managed funds and shares are reviewed every six months and the updated values may affect payment to pensioners.

The Pension Bonus Scheme provides a tax-free lump sum for people who voluntarily defer claiming Age or Service Pension. To get the benefit you have to register and continue to work for at least 12 months. The bonus is paid when you finally retire and receive a pension. You should register within 13 weeks of meeting the requirements. For details of registration, eligibility, payment and other matters check this Centerlink site.
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Centrelink explained

Will you qualify for a full or part pension?

One of the most important things most people retiring need to think about is understanding how Centrelink benefits work – and whether they will qualify for a full or part pension. The Australian Age Pension is highly tailored to the situation of individuals so the picture will look a little different for each person. There are a number of different benefits that are available to people heading into retirement. Those for which you are eligible will depend on your unique circumstances. A financial planner can help people determine what will work best for them and Centrelink can provide information around eligibility and how to apply. The following information offers a plain-English summary of the current rules and requirements.

Are you eligible for the Age Pension?

Here is a list of the basic requirements to get the Age Pension:

· Be age 65 years for male and currently 63.5 for females*
· Be an Australian resident
· Meet certain requirements about living in Australia
· Have income and assets below certain limits. The income and assets test consider areas such as the level of assets you have, where you invest those assets and the income those assets are deemed to earn.

*The qualifying pension age for females changes, depending on your date of birth. Refer to Centrelink for more information.

The maximum Age Pension amounts are currently:

(Source: Centrelink; as at 20 September 2009)

What are the income and assets tests?

The rate of payment for Age and Service Pensions is calculated under both the income and assets test. The test which results in the lower rate (or nil rate) will apply.

Income tests

· Different income limits are set for singles and couples
· Depending on the source of income, Centrelink will apply different rules on the income it generates
· Special rules apply to assess the income generated from financial assets. For most financial assets, Centrelink applies ‘Deeming Provisions’ to calculate how much income is assessed for the income test. Financial investments included under deeming rules are assumed to receive a certain ‘deemed’ level of return, regardless of the actual return received
· Deeming rates are set by the Federal Government and will change periodically.

Assets test

· A minimum and maximum assets test threshold is applied to pension payments
· Different levels of assets are allowed for singles and couples, and for homeowners and non-homeowners
· There are rules on which assets are included and what happens if you give away assets.

Working out your entitlement

As mentioned above, there are two tests in working out your entitlement; an income test and an assets test. Your entitlement will be based on the lower entitlement from the two tests. Any income or assets that you have above government-set limits will reduce your entitlement until it eventually phases out.

Social security, eligibility and other benefits

The main types of income support available to retirees in Australia are the Age Pension and Service Pension. Service Pensions are payable to eligible veterans, their partners and war widows and widowers.

Applying for a pension is relatively straightforward. You’ll need to apply at your local Centrelink office and take original documents with you.

The pension is paid fortnightly. It may include other benefits, (such as the Pension Supplement). If you qualify for a pension, you may be entitled to additional payments and benefits such as the Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance.

Single or partner?

If you are single, your own income and assets are taken into account in calculating your entitlement. If you are single, any income over $142 per fortnight will reduce your entitlement by 50c for each dollar of income you receive over this amount. If you have a partner, combined you are allowed to earn up to $248 per fortnight. Any income over this and your pension entitlement reduces by 25c each, for every dollar over the $248 per fortnight.

Under the assets test, if you are single and a homeowner your entitlement will reduce by $1.50 for every $1,000 in assets you have over $178,000. If you are a non-homeowner, then you are allowed to have up to $307,000 in assets before your pension entitlement is impacted but the same reduction rate applies. If you have a partner, your combined assets are factored in the calculation. If you are homeowners, then for every $1,000 in assets you have over $252,500 your entitlement will reduce by $1.50 combined. If you are non-homeowners, then you are allowed to have up to $381,500 in assets before your pension entitlement is reduced. Centrelink rules have recently changed to recognise same-sex partners.

Other benefits – Seniors and Health Cards summarised

· Pensioners Concessional Card
– is available to people receiving a full or part pension as well as certain other social security recipients
– entitles you to reduced-cost medicines under the Pharmaceutical Benefits Scheme (PBS). It may also entitle you to extra concessions from state and local government authorities, such as rates, public transport and motor vehicle registration. Concessions vary from state to state.

· Commonwealth Seniors Health Card
– helps with the cost of prescription medicines and other services if you are of Age Pension-age but do not qualify for Age Pension
– bases eligibility on an income test.

· Seniors Card
– is available to Australians aged 60 years and over
– entitles you to a range of benefits provided by government and businesses
– is free and is issued by every state and territory government to eligible senior residents. Eligibility criteria and benefits vary slightly in each state and territory.
– can be contacted in the state or territory in which you reside for more details.

For more information on the Age Pension and other government entitlements for retirees visit the Centrelink website at www.centrelink.gov.au or phone 13 2300

Four tips to make the most of Centrelink

Tip One – Bank account interest
Q - Does the interest you receive from your bank account impact your pension?

A – Not directly. Centrelink assumes certain investments such as bank accounts and term deposits will earn a certain amount, regardless of what you actually receive from it. This is called deeming.

Tip Two - Structure your affairs in time
Keep in mind - the way you structure your assets or finances will impact upon your eligibility for Centrelink. It takes time to structure your affairs. Don’t leave it to the last minute as you could miss out on much-needed income. If you want to maximize your entitlement, speak to a financial planner early and structure your assets and finances well before you retire.

Tip Three – Invest in the right assets

Different investments are assessed differently. You may be able to increase your Centrelink benefits by holding certain investments.

Tip Four – Super wins
Generally speaking, super and allocated pensions are assessed more favourably by Centrelink than non-superannuation investments.

Centrelink asset clarification

YOURLifeChoices subscriber, George, loves his life on the open road but is confused as to why his mobile home is classed as an asset.

Q. George
I noticed one of the answers in the Q&A stated that the primary home is exempt from a means test and not regarded as an asset. I live and travel in my motor home, yet it is on my records as an asset and I am being paid my pension accordingly. I claim rent assistance only on very rare occasions when I have to pull into a caravan park. Could you please enlighten me on this?

A. Provided by Centrelink
If a Centrelink customer resides in a mobile home, campervan, caravan or a boat which they own (or are purchasing), they are considered a homeowner and the mobile home is an exempt asset as long as they do not own another residence and are only travelling for less than 12 months. Rent Assistance can be paid if you are paying site or mooring fees.

It’s best to discuss your individual circumstances with Centrelink directly on 13 2300.

Centrelink questions answered

This week, YOURLifeChoices have answered several questions with assistance from Centrelink. Got a Centrelink query yourself? Find out if you have the same issue as other YOURLifeChoices subscribers.

Newstart Allowance qualifying activities

Q. Alex
My daughter who is 61years of age,(is married and her husband is on a part Disability Pension) presently receives Newstart Allowance but has been told to continue receiving the payment must do 15 hours a week community aid work. She already does meals on wheels and has done for some years on a voluntary basis. My daughter was employed as a textile worker before being made redundant due to the Global downturn, we understand you have to be actively looking for employment but not aware you could be made to do community work to continue receiving the payment. If this is the case then a few young people could be very gainfully put to work. Your comments will be greatly appreciated.

A. Job seekers in receipt of Newstart Allowance are required to satisfy Activity Test requirements to remain qualified for payment.
· Activity Test requirements mean that a job seeker must:
- be actively looking for suitable paid work;
- be willing to accept any job that they are capable of doing (within their capacity), including full-time, part-time and casual jobs; and
- engage in activities that Centrelink or their employment services provider considers will improve their employment prospects.
· Job seekers who are aged 55 years or older are considered to be Mature Age job seekers. Mature Age 55+ job seekers can fully meet their Activity Test requirements through a range of activities, including undertaking 30 hours per fortnight of suitable paid work or approved voluntary work, or a combination of the two.
· In order for voluntary work to be considered an approved activity, the organisation the job seeker is volunteering with must be approved by Centrelink for voluntary work through satisfying all of the following criteria:
- be a ‘not for profit’ organisation;
- be community based; and
- must have appropriate Public Liability and Personal Accident insurance. 
If you have any doubt as to whether your activity meets requirements, you should contact your local Centrelink office.

Age Pension versus Disability Support Pension

Q. Ron
I have just received forms from Centrelink to complete in order to receive the Age Pension.  I am currently on a Disability Support Pension and I am turning 65 years of age on October 15 this year. One question on the form gives me an option to take the Age Pension or remain on Disability Support Pension.  I am very confused as to what I should or need to decide regarding the options.  Are both payments the same?  Will I lose some of my current benefits?  Does changing over to age benefit mean that my partner no longer qualifies for Carer payments? 

A. Age Pension is generally the most appropriate payment for people who are over Age Pension age. The rate of payment, income and asset tests and concession card provided to Age Pensioners are the same as for Disability Support Pension. Once you reach Age Pension age your payment will become taxable whether you remain on Disability Support Pension or transfer to
Age Pension. 

There are no medical eligibility requirements or medical reviews if you receive Age Pension.

If you are intending to travel outside Australia, the guidelines for being paid Age Pension outside Australia may be more beneficial than those for Disability Support Pension.

If your home is situated on a block of land larger than two hectares, and on one title, you may be able to have more land exempted from the assets test if you receive Age Pension.

In some circumstances you may be better off remaining on Disability Support Pension. These include: 
· if you are studying you may be able to get a Pensioner Education Supplement or Education Entry Payment
· if you currently get Incentive Allowance this can only be paid to Disability Support Pensioners
· if you are single and sharing privately rented accommodation you may be eligible for a higher maximum rate of Rent Assistance than if you were receiving Age Pension and sharing accommodation. 

Note: If you have a partner who currently receives Wife Pension she will also lose access to Pensioner Education Supplement if you transfer to Age Pension. 

Your partner would still qualify for Carer payments if you transfer to Age Pension.

Customers can contact Centrelink to discuss their situation and the most suitable option for them.

Asset limits

Q. Umberto
Could you please advise what is the maximum amount of assets you can have before your pension is affected. I know the residential home is not included in the assets but what about the following:
1) House contents
2) Family car
3) Boat, caravan
4) Money in the bank
5) Super
What will be the total amount in dollars before the pension is affected?
Also if someone takes a reverse mortgage, let’s say of about $50,000 to buy a new car or boat or caravan will that amount be considered an asset?

A. Homeowners can have up to $178,000 in assets to receive the single maximum rate Age Pension. The pension doesn’t cut out entirely until you reach $626,000. The rates are higher for couples.

Apart from the family home, Centrelink considers all of the things you have listed as assets. This includes if you take a reverse mortgage to purchase a car or boat. Please note that there is also an income test and the income from financial investments may affect your pension (e.g. the deemed income on money in the bank and superannuation).
You might consider attending a free Centrelink Financial Information Service Seminar. There is one entitled ‘Age Pension, Your Options’, which explains how income and assets impact on Age Pension entitlement. For details of a session in your local area, visit centrelink.gov.au.

Income from market sales

Q. Gus
I’m a part DSP recipient and my wife is my carer who receives Carer Payment. She has started selling clothes at a local market on Saturdays. She plans to travel to China to buy stock about once a year. She has made one trip so far to buy stock. With the cost of the airfare, hotel, stock, freight and other costs incurred in acquiring the stock and also the cost for market set-up (gazebo, trailer. display racks, liability insurance, stall rental etc she is still well and truly in the red. I imagine she will probably run at a loss in the first year. and possibly the second year also. She does not exceed the 25 hour away from me work/travel rule for the carer payment and when she travels O/S she does not exceed the maximum 63 day carer respite. So the only issue is the income if any at all.

My question concerns when she must report her income to Centrelink. She won’t know until the end of each financial year if she has made a profit or not. If in any financial year she has a loss does she have to tell Centrelink anything at all?

Social Security Law makes a distinction between employment income and business income. Centrelink will assess business income without the new Work Bonus but minus any allowable expenses. Each case is assessed on its merits, so the best thing for someone in this situation to do is to talk to us to work out the best way of reporting business income.

Your wife will be required to estimate the business income and expenses until annual financial statements are prepared, so you must discuss this with Centrelink straight away, on 13 2300.

Widows allowance

Q. Val
I am on widows allowance and assumed I would get the budget increases but received no letter telling me about it. I phoned Centrelink who told me that because it was an allowance and not a pension, I wouldn’t be receiving it. I was of the understanding that the increase was to replace the lump sum payments that have been given in recent times which I was receiving, so why is widows allowance exempt from the new increases? Also, because I will qualify for age pension after the end of January, I asked if they would be sending me the appropriate paperwork at that time and they said “No!” I would have to apply myself, so it seems they would prefer I stay on the lower rate of pay. I just wonder how the foreign speaking people cope with it all as it’s confusing enough for those that do speak English. I had previously been on a wives’ pension as my husband had an accident at work so hadn’t worked since the early 90s and I had a carers’ payment, so it was very daunting after he died 2 years ago when I was 61 to have to deal with my new status having no work experience.

A. We’re sorry to hear you have felt overwhelmed at times. Centrelink delivers the range of social security payments on behalf of the Australian Government. The pension changes follow an extensive review of the pension system by Dr Jeff Harmer, Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs.

In relation to claiming Age Pension next year, you might consider claiming online. Since you’re a user of YOURLifeChoices website, you would probably find claiming this way a convenient option from home, or you can use one of the many self-service computers located in Centrelink offices for customer use.

Centrelink has done a lot of work in designing easy-to-use online services for seniors. There are step-by-step processes for registering for online services, claiming a payment and updating personal details, to ensure people with even limited experience in using the Internet are able to use Centrelink’s online services.

You also have the option of calling 13 2300 or visiting a Centrelink office for assistance.

What changes will take place?

As announced in the 2009-10 Budget, the following changes will take place:

Age Pension increase

From 20 September 2009, the maximum rate of single pension will increase by $65 a fortnight - $5 of this will be incorporated in the new Pension Supplement.

Part rate singles will receive a partial increase in the pension, with the minimum increase being $20.20 a fortnight.

All couples will all receive a pension rate increase of $20.30 a fortnight combined, regardless of their income or assets.

These increases are on top of the regular indexation of pensions due in September 2009.

Q. Bert’s part pension
Due to income from superannuation and assets I hold, I am on a part-pension. Does this mean I won’t get the pension increase?
A. You will be entitled to an increase but this will depend on your income.  The minimum you will receive is $20.20 a fortnight.

Q. Anne’s single pension
I am currently on a full single Age Pension, what will I get from 20 September?
A. You will receive your current pension, an additional $60 per fortnight plus whatever increase eventuates from the scheduled cost of living indexation.
You will also receive the new Pension Supplement of $56.10 per fortnight however, you will no longer receive the GST supplement, Pharmaceutical Allowance, Utilities Allowance or Telephone Allowance at the higher Internet rate which have been replaced by the new Pension Supplement.

Changes to the Pension Income Test

If you have private income below the income test ‘free area’, which is currently $142 a fortnight for singles and $248 for couples combined, you will not be affected by changes to the Pension Income test.

If your income exceed these limits, your pension will be decreased by 50 cents in the dollar for singles, an increase from the current 40 cents in the dollar.  For couples earning income above these limits, the Age Pension will be decreased by 25 cents in the dollar, increased from the current 20 cents in the dollar.

The higher income test free area for pensioners with dependent children will be removed

There is also an additional allowable income for those pensioners claiming the new Work Bonus, half of the first $500 of fortnightly employment income will be disregarded from the income test for pensioners over Age Pension age.

Current pensioners will be assessed under both the current means test rules and the new rules and will be paid subject to which provides a better outcome, with a transitional rate being implemented for those who would be worse off under the new rules, rather than have a payment reduction.

Q. Peter’s transitional rate
I am better off under the new rules in September but anticipate that my private income will increase thus making me better off on the transitional rate, can I go back to that transitional rate?
A. No, once you have been paid under the new rules you will remain on them.

Work Bonus

The current Pension Bonus Scheme will be closed to new applicants from 20 September 2009 and will be replaced by a Work Bonus for those who continue to work after qualifying for the Age Pension.  Under the Work Bonus half of the first $500 of fortnightly employment income will be disregarded from the income test for pensioners. A maximum of $250 can be disregarded and is in addition to the normal allowable income free area.

Q. Shona’s part-time work
I will qualify for the Age Pension in two months time but intend to continue in part-time employment. What do I have to do to get the work bonus?
A. Simply keep Centrelink up-to-date with your earnings and they will apply the Work Bonus where applicable.

If your income qualifies you for a full rate pension, you will not be affected by this change.

Q. Marge’s partner’s income
My husband and I receive the couple rate of Age Pension and he also has an income from a part-time job. Will his earnings be discounted in working out both of our pensions, or just his?
A. Your partner’s assessable income will be reduced by the Work Bonus and as this affects your combined assessable income, you will both receive the same benefit from the change.

Increase in Age Pension age

The qualifying age for Age Pension for both men and women will be increased by six months every two years starting from 1 July 2017. At 1 July 2023, the qualifying age will reach 67.

The qualifying age for the Commonwealth Seniors Health Card is age pension age, consequently this age will also increase in line with the change.

The qualifying age for Department of Veterans’ Affairs Service Pension will not be changing.

Q. Joan’s pension age
I will turn 65 in June 2018 and fear I will have to wait longer to claim my Age Pension, is this the case.
A. Unfortunately the changes will affect when you can claim your pension.  Based on the information you have given us, you will be eligible for an Age Pension at the age of 66. 

The table below details the gradual changes to the qualifying age for Age Pension for both men and women.

Q. Tom’s new pension age
I am due to qualify for my Age pension in two years time, will I have to wait even longer?
A. Good news Tom, the changes do not affect existing Age Pension customers and does not apply to people born before 1 July 1952.

Pension supplement

If you are eligible for the Age Pension, Carer Payment, Wife Pension, Widow B Pension, Bereavement Allowance or Disability Support Pension (excluding those aged under 21 without children), you will receive the new Pension Supplement.  This will be paid fortnightly and will replace the following payments:
· Pharmaceutical Allowance (PA)
· Utilities Allowance (UA)
· GST Supplement
· Telephone Allowance (TAL)

Q. Edna’s supplement worries
One of the benefits of receiving the current allowances is that they are paid quarterly, this really helps with some on my larger bills.  Can I opt to have this new supplement paid quarterly?

A. At the moment, no.  From July 2010 there are plans to allow customers to receive the minimum amount of the Pension Supplement quarterly instead of every fortnight.

Q. Paul’s allowance query
I do not think I am eligible for the Pension Supplement, does this mean I will lose all the other allowances?
A. No, you will still receive the Pharmaceutical Allowance, Telephone Allowance or Utilities Allowance for as long as your eligibility for these remains unchanged.

Q. Toby’s quarterly payments
We are due to receive our next quarterly payment of the Utilities, Telephone Allowance etc on 20 September, just when the new arrangements kick in.  Does this mean we will miss out on this payment, this seems rather unfair?
A. Good news Toby, you will receive your last payment of the old allowances in September and if you are eligible for the new Pension Supplement, you will receive this as well.

Seniors supplement

To mirror changes being made to the Pension Supplement, a new Seniors Supplement is being implemented for holders of Commonwealth Seniors Health Cards and Department of Veterans’ Affairs Gold Cards. It will have the same value as Telephone Allowance (higher Internet rate) plus Seniors Concession Allowance and will be non-taxable.

The Seniors Concession Allowance will be abolished for Commonwealth Seniors Health Card holders following the payment resulting from the 20 September 2009 test date. Telephone Allowance will no longer be available to Commonwealth Seniors Health Card holders following the installment that relates to the 20 September 2009 test date.

Q. Phil’s seniors’ supplement
I get confused by all the numbers that are being quoted.  Just what will the Seniors Supplement be worth to me?
A. The rate of the Seniors Supplement is $785.20 a year for singles (or $196.30 a quarter) and $1,185.60 a year for couples combined (or $296.40 a quarter combined).

Each eligible member of a couple will receive half of the combined rate, unless paid the single rate due to the couple being separated due to illness, or the partner is in prison or in a psychiatric hospital. Singles will receive 66.33% of the combined couple rate.

I hope this clarifies

Q. Betty’s internet connection
I’ve just managed to claim the Telephone Allowance at the higher rate because I have an Internet connection, will I now lose this?
A. Good news, the rate of Seniors Supplement will reflect the higher (Internet) rate of Telephone Allowance. It will no longer be necessary to prove that you have an Internet connection, or even a phone connection.

Carer supplement

A new Carer Supplement of $600 will be paid to people who on 1 July each year from 2010 are recipients of:
· Carer Allowance Adult
· Carer Allowance Child
· Carer Payment
· Wife Pension (Age) with Carer Allowance
· Wife Pension (DSP) with Carer Allowance
· Department of Veteran’s Affairs (DVA) Carer Service Pension
· Department of Veteran’s Affairs (DVA) Partner Service Pension with Carer Allowance.

The first payment has already been made in June 2009.  Those in receipt of a Carer Allowance will receive the for each eligible person in their care. This means that some carers will receive more than one Carer Supplements.  Those receiving a part rate of Carer Allowance under shared care arrangements will receive a proportion of the Carer Supplement.

Q. Pauline’s Carer’s allowance
I have a Carer Allowance Health Care Card, but didn’t receive the Carer Supplement in June.  Can I expect to receive it soon?
A. Unfortunately no, you have to receive one of the eligible payments to receive the Carer Supplement.

Advance payments for pensioners

The purpose of the changes to Advance Payments is to help pensioners better manage their finances over time.  The maximum and minimum amounts will increase in line with pension rate increases, to ensure that their values are maintained over time.

Current repayment policies will continue, with Advance Payments being repaid over 6 months.

These changes are being introduced at the same time as complementary changes that allow customers to receive part of their Pension Supplement (or transitional rate), equal to the Seniors Supplement, on a quarterly basis.

Q. Dave’s advance payment
I find myself having to use the Advance Payment facility from time-to-time, will I still be able to do so?  I am currently on a Disability Support Pension.
A. Yes, you will.  The new rules apply to:
· Age Pension
· Disability Support Pension
· Carer Payment
· Widow B Pension
· Wife Pension
The changes do not apply to recipients of Parenting Payment Single.

Q. Sue’s exact amounts
It’s all very well taking about maximum and minimum amounts but what are these?
A. We understand this Sue but the amounts depend on how much pension is received as a rule the maximum Advance Payment amount that a pensioner can receive is increased from $500 to whichever is the less of:
· 3 weeks of the maximum basic pension plus part of the pension supplement amount (if the person gets more than the minimum); or
· 7.5% of their annual pension amount which is payable at the time of lodging the application; or
· both calculations exclude the value of the minimum components of the Pension

The minimum Advance Payment amount available is set at 1 week’s maximum basic rate of pension. That way, the minimum goes up whenever the pension rate increases.

The amount of Advance Payments you can have at any given time is three and if any Advance Payment is outstanding after 12 months, they will not be able to receive an additional advance.

Disability Support Pension

If you are forced to give up work it can be difficult to ascertain your entitlements and how you can access these benefits, as YOURLifeChoices subscriber, Dianne, and her friend has realised.

Q. Dianne
I have a friend who is 60 years old.  She is not particularly well and is unable to continue working. Can you please advise:
1. What options for income support and health benefits might be available for her?
2. What should she do to access this sort of income and health support?

A. Provided by Centrelink
Thanks for your enquiry. I would encourage your friend to contact Centrelink to discuss her individual circumstances.

There are a range of income support options for people in situations like this, such as Disability Support Pension. This payment is designed to support people unable to work for at least two years due to illness, injury or disability. People who apply for Disability Support Pension may be eligible for Newstart Allowance (free of any activity test requirements) while their claim is being determined. Another option may be Sickness Allowance, a payment for people unable to work temporarily because of illness, injury or disability and who have a job to return to when they recover.

For more information about these options, customers can contact Centrelink on 13 2717 or visit the website

Your friend may also wish to make an appointment to speak with a Centrelink Financial Information Services (FIS) officer before she makes any decisions about her future. These officers are available to help people maximise their income in retirement, even if they are not currently a Centrelink customer. The number to call is 13 2300.

Changing pension status

With the budget changes due to come in to effect on 20 September 2009, you may find, along with YOURLifeChoices subscriber, Yvonne, that changing to a different pension brings you more income.

Q. Yvonne
For years my husband has been my carer as I am on a disability pension.  He had been receiving a carer’s pension as well as the carer’s payment. When he turned 65 he was asked to go on the Age Pension and was told that it would make no difference to the payments we were receiving, it would just make the paper work easier so he said OK. As soon as he did this we started missing out on the carer’s bonus payments that we had received earlier when we were on the carer pension. When we complained we were told that those were one off payments with no guarantee that they would continue in the future. We now know that they are continuing and my question to you is this - Is it possible for us to go back onto the carer’s pension so as not to lose the extra money we would have been getting if we hadn’t changed in the first place?

A. Provided by Hank Jongen, General Manager, Centrelink
The Australian Government has announced changes to pensions that will take affect from 20 September. For customers who may be eligible for both Age Pension and Carer Payment, it’s clearly a good time to reconsider which one is best for you.

Carer Payment recipients will receive the pension increases announced in the pension reform package. In addition, there will be a permanent Carer Supplement of $600 per annum for Carer Payment recipients and $600 per annum for Carer Allowance recipients (for each eligible person in their care). This replaces the previous Budget one-off bonuses, to offer more certainty for people in caring roles.

There are also other things to take into account when making this decision, depending on your individual circumstances. To help you make the best decision, Centrelink has a fact sheet comparing the two payments.

There is nothing to prevent a person from moving from one payment to another, provided they are eligible for both, but there are certain rules regarding the amount of care needed and provided that must be met for Carer Payment. If your husband wishes to apply for Carer Payment, he should contact Centrelink on 13 2717.

Read more on Pension news here.

Centrelink nominees online

If you’re a nominated person who conducts business with Centrelink on behalf of a customer, you can now register to deal with Centrelink using Centrelink’s Online Service

These improvements mean nominees can now update contact details and view payment details online, without having to visit a Centrelink Customer Service Centre.
The new service will be particularly helpful for carers, many of whom act as a nominee for the person they care for.

Nominees can use Centrelink’s Online Service by visiting www.centrelink.gov.au. To register, or for information on support for carers or becoming a nominee, visit www.centrelink.gov.au, call 13 2717 or visit a Centrelink Customer Service Centre.