Annie receives an overseas pension but isn’t sure if the allowable income threshold is applied to her Australian Age Pension.
I get an overseas pension from New Zealand and the UK totaling around $15,000 per annum depending on the exchange rate. The Australian Government deems this annual income and calculates from this the Age Pension which I receive, which is on average $190 per fornight. My question is; am I entitled to the $4160 per year that a person on a pension is allowed to earn before any deductions are made to their pension?
A. When calculating your pension payment rate, Centrelink assesses you under both the income and assets test and you are paid the lower of the two rates. Under the income test, the $160 per fortnight (or $4160 per annum) you can earn before your pension is reduced should be applied. However, it is important to understand whether you are paid the amount applicable to the income or asset assessment. Centrelink should be able to advise you regarding this.