15th Aug 2014
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Overseas pension calculation
Overseas pension calculation

Annie receives an overseas pension but isn’t sure if the allowable income threshold is applied to her Australian Age Pension. 

Q. Annie

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.





    COMMENTS

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    Not Senile Yet!
    15th Aug 2014
    3:44pm
    Gee they will do anything to restrict a person on a pension and therefore prevent them from earning anything extra won't they?
    The fact is that the $160 per fortnight is out dated and when it comes to the baby boomers transitioning to retirement with little Super...the Government should be encouraging not penalising people who can and are willing to work part-time!!!
    Someone with good experience and qualifications can earn between $200 and $300 per day....instead of penalising them they should be rewarding them for doing so.....example being....instead of taking away their pension....they should just tax them @25% and leave their pension alone.....easier to monitor....win/win for Government and the 25% tax will supplement the amount the Government pays!
    They need to move away from the Old penalty of reducing your pension and implement a method of taking reasonable tax from the income earned ....... This would allow people to choose to work without penalties for doing. The extra tax would reduce Governments liability and increase Tax income to cover the Pensions.
    Bear in mind....most people cannot afford Private Health Insurance when on a pension...but given the opportunity to work part-time without penalty...they may be able to afford to keep it!
    MICK
    17th Aug 2014
    8:42pm
    Not being a pension guru I am probably not the right person to comment on this topic. I wanted to ask if a retiree can get a pension from overseas which does not count towards the income test here. I heard that this was the case and would be interested to know if this is a myth or not.
    Andy
    22nd Jan 2018
    2:47pm
    a good reply (not Senile yet) but just to add even though we are on a lousy pension we still pay 40% tax on that pension until we die. the Governments never say anything about that, we are not working so why are we taxed?


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