8th Sep 2014

Asset test tables

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Debbie McTaggart

View the tables below to find out the Asset Test Limits for allowances and pensions for homeowners and non-homeowners.

Centrelink asset test limits for Allowances and full Age Pensions - effective from 1 July until 30 June 2015

Situation

Homeowners

Non-homeowners

Single

$202,000

$348,500

Couple (combined)

$286,500

$433,000

Illness separated (couple combined)

$286,500

$433,000

One partner eligible (combined assets)

$286,500

$433,000

 

Centrelink asset test limits for part Age Pensions - effective from 20 September until 19 March 2015

Situation

Homeowners

Non-homeowners

Single

$771,750

$918,250

Couple (combined)

$1,145,500

$1,292,000

Illness separated (couple combined)

$1,426,000

$1,572,500

One partner eligible (combined assets)

$1,145,500

$1,292,000

 

Centrelink asset test limits for Transitional homeowner - Resident

Situation

Homeowners

Non-homeowners

Single

$682,750

$829,250

Couple (combined)

$1,062,000

$1,208,500

Illness separated (couple combined)

$1,248,000

$1,394,500

One partner eligible (combined assets)

$1,062,000

$1,208,500

 

Note: These tables are for guidance only and should be read in conjunction with Centrelink rules

Click here for details of the updated Centrelink income test limits.





COMMENTS

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Wassa
30th Jun 2014
11:43am
How does asset test work when one person is just at retirement age, but other partner still has 7 years to go. Does Centrelink use combined asset approach or single person asset approach?
Misty
30th Jun 2014
12:18pm
Check on the website, I think they take into account your partners income so maybe they do it on a combined level.
Misty
30th Jun 2014
12:22pm
There are tags at the bottom of this article you can click on to get more information, Age Pension, Centrelink etc.
BettyBoo
19th Sep 2014
8:45pm
They definitely use the combined approach. A couple is treated as an inseparable unit!
Engy
6th Oct 2014
1:41pm
Before the commencement of Newstart if you qualified under the assets test and your spouse earnt a low income you may be entitled to a small part pension. I know somebody who was in that situation
Janall
30th Jun 2014
12:16pm
Centrelink uses the combined asset approach. Go and see an FIS at Centrelink, they are very helpful with all this. My wife is younger than me and we are going through this at the moment.

30th Jun 2014
12:17pm
YEAH, yeah, yeah I can have $348,500...if I had that sort of money I would not need the pension AT ALL
Hillbillypete
6th Oct 2014
8:09pm
YES YOU WOULD!
Young Simmo
30th Jun 2014
12:58pm
Yep, I just check our money box and am confident that there isn't $433,000.00 in there. The only thing that can bugger up our situation is winning lotto. Then to solve our massive problem I would give our winnings to the, "Politicians Emergency Support Fund".
Let's face it they need help when they retire, they are not lucky like the rest of us.
HOLA
1st Jul 2014
8:25am
If I won Lotto YOUNG SIMMO, it would give me great pleasure to front up to Centrelink and tell them they can stick their pension where Nobby stuck his nuts.
gerryhatrick
30th Jun 2014
5:10pm
They are joking surely with anything close to $200.00 in the bank you would not be entitled to a full pension .If so its no wonder we are in an unsustainable sistuation
Misty
30th Jun 2014
11:36pm
I think you left a couple of zero's off gerryhatrick.
fedup
29th Jul 2014
12:28pm
Assets is not just money in the bank its car, furniture anything with value plus savings in the bank all added up !!!!
Engy
10th Sep 2014
11:06am
Yes fed up, they say one car isn't counted as asset, that you are allowed one.
Why then do you have to state its value or even know what it is? Ring Motor Vehicle Registration Dept., insurance company or crash repairer and get "red book" value. I don't remember my Mum being asked value of furniture -that's a new one on me. I can remember when Military disability allowances were tax free - I wonder if they still are? A lot of Vietnam veterans have died from various cancers - a lot with liver and some with Leukemia. A group of wives whose husbands died from Liver Cancer formed a group to lobby for recognition of the disease being so prevalent in veterans who were based in one area of Vietnam as several died within months of each other. A Vietnam veteran I know personally told me they didn't only use Agent Orange, but other colours too. He has battling Leukemia for a long time and we thought we were going to lose several times. At the moment he is in remission again. He constantly has to have tests. The side-effects of the chemo and radio therapy have caused other serious permanent medical issues.
0gran020
30th Jun 2014
5:26pm
Yes well are they going to get fair dinkum and start asset testing for the Vietnam vets the same way they asset test the average DEP pensioners, after all even though we did not go over seas to fight for Australia, it seems to be forgotten that some one had to stay hear to keep (Australia) "OPEN FOR BUSINESS " PM Abbots words . don't get me wrong the vets need looking after but its a bit of a joke when they have to go over seas or buy new cars or are generally put in the position of having to spend money just so they don't appear to have to many assets .
Engy
6th Oct 2014
1:29pm
As far as I know ept. of Veterans Affairs pensioners are asset tested. I know my Dad was. Armed Forces that were injured in Darwin when it was bombed were still on Aust. soil so they got no extra benefits at all......If pensioners are really frugal. don't drink alcohol(some don't like the taste of it), smoke or gamble large sum of money as one couple I know does, you can save money for a "rainy day such as repair or replacement of fridge, washing machine etc. necessary home repairs if you own your own home, a short budget holiday every 2 or 3 years.
Trading in cars with a low to moderate mileage often means there is little outlay and you don't suddenly have expensive bills for worn parts regardless of whether or not you have your car serviced regularly.
gerryhatrick
1st Jul 2014
10:07am
Yep sure make a big mistake when I quoted $200 that's about what most of us have sitting in a bank I meant to say $200.000 that's an awful lot of money sitting gaining interest monthly I have a couple of friends who tell me they are doing it tough on a part pension I think I can now see how tough it would be no wonder they can have the odd holiday I just thought they were better managers than I am
mick
19th Sep 2014
4:43pm
Really????
Disgusted
12th Aug 2014
1:42pm
I own a modest home with very difficult access. It is rented out while I am traveling. It brings in a very small, unreliable, rent, and I spend more than it brings in paying for camping sites etc. My only other asset is a block of land I will eventually retire to when I sell my home. I bought it cheaply over 30 years ago and it is NOT an investment My home and land are treated by Centrelink as assets. My land alone costs me $130 pf in rates and slashing. But as it takes me over the asset limits I lose $550 pf of my pension. I am much worse off than if I owned nothing at all and received a full pension. So stop complaining Gerry. Assets often cost us money to hold and don't mean we are rich or better off than you. Nor can we easily turn them into cash.
Pardelope
6th Oct 2014
8:13pm
It often seems unfair, that those who work hard and save are penalised in comparison with those who live for the moment and never consider the future. Many people say that it is better to be really wealthy, or to be very poor.
brisand
10th Sep 2014
3:10pm
Don't forget any money in Superannuation is also counted as an asset and is penalized every year on the same money, less any withdrawals in previous year, until its all gone. And/or any withdrawals are counted as income.
mogo51
10th Sep 2014
5:30pm
bRISAND,
maybe remember though that once 65 you convert to asset stream or annuity, it is a deeming account average 3% irrespective of what interest you earn, so there is a benefit there. The whole system sucks though, as if they had followed the Singapore scheme run by government there and has built the city into one of the best in the world.
brisand
10th Sep 2014
7:31pm
Sorry Mogo51, I am 68 and both mine and my wife's super are fully counted as assets with the pension being reduced by $1.50 p/f per $1000.00. Each fortnight on the balance of super there is.
Remember super should be spread out to last entire, predicted, lifetime.
Also super is counted over 65 regardless of whether you convert or not. Only relief, at the moment is the primary family home.
Also Engy ALL cars are counted as assets, as is furniture etc.
mogo51
10th Sep 2014
8:26pm
I am correct as I had a discussion with CL finance adviser last week. It is counted as an asset = single person is allowed $140k in super, $180-189k for married/parntners, not sure the exact figure as I only obtained single figure, but that is about the amount.
If you have over that amount every dollar you lose 50c until you get to the wipeout stage.
The above amounts are taxed at 2.5%, 3.5% after you reach certain figures, but I just work on an average of 3% which works out about right. You just need to know the difference between asset and income. If you come within that amount, the above is how it works. If it is the only income you earn, you must withdraw a min.
5% each year to withdraw deemed at the above rate. I can withdraw more if I wish. But I am getting a far better return than that, I can get $12k out without reducing my lump sum, so that will substantially increase my life style. I will also receive the full pension Especially when I go overseas and live in a country where the cost of living is cheaper.





















EACH YEAR, f
brisand
10th Sep 2014
9:07pm
http://www.humanservices.gov.au/customer/enablers/assets/income-streams
Income streams include:

Allocated Pension also known as Account Based Pension
Market Linked Pension also known as Term Allocated Pension
Annuities
Defined Benefit Pension for example ComSuper pension, State Super pension
Superannuation pension

long term income streams are fully asset tested
Engy
6th Oct 2014
1:38pm
Brisand,
Thank you for clarifying the fact that furniture is included in assets. Approx. 90% of ours was built-in and included in the house value.
Pardelope
12th Sep 2014
3:35am
Pensions are assessed on BOTH the assets AND income tests. Whichever gives you the lower pension is what you get (maybe nothing). They were intended to ensure that Australians had a BASIC style of living and that no-one was forced to live in the gutter or beg.

You need to check with Centrelink to find out exactly what is counted as income AND exactly what is counted as an asset. Our beloved Treasurer recently suggested that the primary residence should be counted as an asset - so all you pensioners living in mansions - watch out! LOL.

Furniture is assessed because you could have a house full of valuable antiques. Vehicles might be Rolls Royces... Your boat could be a mega luxury cruiser (rather than a tinny). I can dream...
Ductape
19th Sep 2014
4:05pm
As far as I'm aware, all furniture, motor vehicles and any other items which can be sold to realise a value, (trailer/tractor/boat/caravan, etc.) are included in the total asset package, but the current value of each item is assessed at a nominal rate - equal to, or lower than, what be expected if the item was sold at a fire or clearance sale.

On the whole, the overall assessable allowance is rather generous.
Pardelope
6th Oct 2014
8:21pm
The assets limits are more generous than the income limits.
XYZ
12th Sep 2014
1:42pm
My wife and I have been living and working overseas for over 20 years. I am a citizen, she is a PR. We plan to move back to Aust soon and will be of pensionable age soon. Will we need to serve any "back in Australia" residence period before we are eligible for the pension. We have carefully kept her PR status updated and current all these years by having it reinstated every 5 years at the Australian High Comm in Singapore.

Appreciate if anyone could enlighten us.

Thanks, XYZ
XYZ
12th Sep 2014
1:46pm
Following from my earlier comment. If my wife applies for Aust citizenship when we move back, will it be automatically given. As I am getting on in years and health not too good, I would not want to pass on and leave my wife in Aust as a PR only, in case the govt ask her to leave? Both our children (aged 23 and 15) are Aust citizens. Appreciate any info/advice. Thanks,

XYZ
Engy
6th Oct 2014
1:35pm
I know a couple who moved to Australia after they retired overseas. For quite awhile they had to pay Income Tax on the money they invested when they moved here.
They weren't given Medicare Cards either.
Pardelope
6th Oct 2014
7:57pm
This is a very complex area. You should obtain advice from Centrelink, Immigration, and possibly a solicitor who specialises in such matters. It is likely that your wife would NOT qualify until she has been a "resident" for ten years.

I am no expert on current requirements, so go to the correct Government Departments for up-to-date information.
Pardelope
6th Oct 2014
8:20pm
If you were married outside Australia, your marriage may not be automatically recognised here in Australia. Check this out too.
XYZ
12th Sep 2014
1:53pm
Does anyone know if we can get the pension if living overseas? Thanks,

XYZ
Ductape
19th Sep 2014
4:08pm
Short answer is yes - but subject to certain criteria. Centrelink will sort it out for you.
Pardelope
6th Oct 2014
8:06pm
As Ductape says - the short answer is "Yes". However, there are certain criteria you must meet. The current Treasurer has suggested that it should be made harder to get an Australian pension whilst living overseas. Check with Centrelink.

You would also need to find out what the taxation and other requirements are in the country you are considering.
XYZ
12th Sep 2014
1:53pm
Does anyone know if we can get the pension if living overseas? Thanks,

XYZ
Young Simmo
12th Sep 2014
1:59pm
G'day XYZ, I think to save some time like a year or 2, you would be better off Googling Centrelink and asking them. If you get any answers in here there is no Warranty with them.
Cheers......SIMMO.
Denis
20th Sep 2014
12:41pm
Debbie, What formula does Centrelink use to assess the value of existing superannuation pensions (assets and income) when determining eligibility for an aged pension?
Tomaso
6th Oct 2014
11:54am
Whats the difference between full and part pension, how does it work etc, ???
Pardelope
6th Oct 2014
7:49pm
You may qualify for a pension if you meet certain criteria including residency, age, income, and assets. Assuming you meet all the other criteria, Centrelink looks at your income and assets (combined if you are a couple). If they are too high, you may get no pension. If they are low, you would get the full pension. If they are somewhere between the two extremes, you would get a part pension. The levels for full, part, or no pension change fairly often, so it is important that you check the Centrelink website which has all the latest charts. The rules on gifting, deeming and taxation also need to be considered.
Engy
6th Oct 2014
1:44pm
Friends of ours sold an old holiday shack (land value low), small boat and caravan, invested along Financial Advice from Centrelink and now get a pension (not sure if it is part or full).
They had planned to use the caravan for budget holidays but failing health prevented that.
Tomaso
6th Oct 2014
2:11pm
Think Mogo51 has hit the nail on the head, time to sell up and live overseas and collect the pension too. Whats the go with doing this anyone. ?.
Pardelope
6th Oct 2014
8:29pm
Some people survive very well on their pension or small income whilst living overseas - especially if they just want to "veg out" in some tropical village with few mod cons. It depends on the type of lifestyle you want. You also have to forego some of the benefits we receive in Australia.
speakup
8th Oct 2014
4:36am
Do these new asset test's apply also to M.Ps Pensions and all their Lerks & Perks


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