Is her super an asset?

Richard is concerned that he will have to pay back the Age Pension he has received.

Is her super an asset?

Richard is concerned that he will have to pay back the Age Pension he has received since his wife turned 65 and her super balance became an assessable asset.

Q. Richard

Is it true that once my wife reached 65 this year, all her superannuation is counted as joint assets whether she stops working or not? I am 69 and have been receiving a part Age Pension for four years. Now I've been told by an accountant that our joint assets will disqualify me from the Age Pension completely and I will only be entitled to the Commonwealth Seniors Health Card. Plus I will have to pay back the ‘overpayment’ since she turned 65.
 

A. Your accountant should understand your financial position, and if this is the advice he has given, then it is most likely correct.

In general, if your wife has reached Age Pension age, her super is counted as a joint asset, unless she has commenced an income stream. If she has commenced an income stream, then the deeming rules applicable to that product will apply and the income will be assessed to determine your Age Pension eligibility.

You will have to advise Human Services immediately of this change in your joint assets or income and, if you have indeed been overpaid, then you will have to pay it back.

A Commonwealth Seniors Health Card is based on your income, which will need to be less than $82,400.





    COMMENTS

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    niemakawa
    7th Oct 2014
    11:01am
    It may seem a bit drastic, but you could separate and still live in the same household and receive the "singles" pension. Ask your accountant, he should be able to advise you further on this possibility. It would be a disgrace if you lose your pension. You worked for it, so fight to save it.
    Rob
    7th Oct 2014
    3:40pm
    It would be a disgrace to take your advice.
    niemakawa
    7th Oct 2014
    3:49pm
    Rob, see my later comments. You also seem not have read this one carefully.
    Bangles
    7th Oct 2014
    11:26am
    Can anyone help me understand please, I have read and re-read the Centerlink site information and I am still confused. When my husband died his Super (a Govt Scheme) was paid to me fortnightly and increased yearly according to CPI. It is not a large fortnightly payment, but if I read the Centerlink income table correctly it is slightly higher than the fortnightly income allowable for a single person I no longer work and receive a part pension. I was told I was not eligible for a full pension because I own my unit and my income from the Super Fund exceeded the allowable fortnight limit. Please don't get me wrong I am very appreciative of the part pension and the Super income and know I am in a better position than many others, but I get a letter each year from the Super Fund saying that I need to advise Centerlink of the tax-free component of the Super Pension. Does this mean I should deduct this amount from the total fortnightly Super Pension to determine the amount I declare to Centerlink as my income. Apart from the Super, my unit and a small car I have no other assets
    Blossom
    7th Oct 2014
    3:13pm
    I have also been notified by my super fund that part of my super is tax free. I believe it applies to the length of time you have had part of the super plan. As my income is lower that the income threshold I don't have to worry about Centrelink at all.
    Mindy
    7th Oct 2014
    12:16pm
    Advising people to lie in order to rip off taxpayers. Great advice!!!
    KSS
    7th Oct 2014
    1:07pm
    I agree Mindy. The same people are the first in the queue with hands out and first in the queue screaming about 'tax dodgers'.

    No wonder the percentage of my tax this year that went to 'welfare' was over 33%.
    PeeKay
    7th Oct 2014
    3:12pm
    Yep that's right Mindy; catch someone out, like n*e*a*a*a, on proposing a fiddle to cheat us all, and they start screaming about how they're misunderstood. "No, what I really meant was . . ." And to cap it all they then want you to apologise!! Talk about sanctimonious.
    niemakawa
    7th Oct 2014
    3:19pm
    PeeKay, An apology from you will be adequate. ( And what are the * * * for?) DO you have the courage to do that. If not then I feel sorry for you et al.
    niemakawa
    7th Oct 2014
    3:28pm
    Mindy, KSS, and PeeKay. Read carefully what I said in my original post. As you seem to have not done so I'll quote " Ask your accountant, he should be able to advise you further on this possibility." As it is plain to see to an educated person I suggested that the writer seek advice from their Accountant. They may meet the criteria under the Centrelink rules. I await your apologies. Thank you, kindly.
    Gee Whiz
    7th Oct 2014
    5:04pm
    The Late multi millionaire Kerry Packer once told a tax office inquiry into his business that where the rules permitted it was every citizens duty to "legally" minimize paying tax wherever possible.

    He went on to say that if he ran his business holdings the same way as the government ran the country he would have been broke a long time ago.
    KSS
    7th Oct 2014
    5:57pm
    Yes niemakawa ask your accountant to help you defraud centrelink. Talk about passing the buck!
    niemakawa
    7th Oct 2014
    6:06pm
    KSS. Please wear your glasses and put your brain into gear before responding. It is unlikely that an accountant would help anyone to defraud centrelink, as you put it. That has never been suggested. "THEY MAY MEET THE CRITERIA UNDER THE CENTRELINK RULES" My motto: Be honest with Centrelink and they will be honest with you. Go back and read and re-read, the comments. Gee whiz!!
    trired
    7th Oct 2014
    12:40pm
    I'm in the same boat, I am on part couple pension and under Joe Hockey's rules I will lose $80.00 per fortnight because my husband is 62 years of age and his Super will be deemed as a whole amount, even though we are on an income stream now.
    Thanks Mr Hockey
    Bangles
    7th Oct 2014
    1:24pm
    I don't understand the Tax dodger and Tax rip off comments, I still pay and submit a Tax return, jumping to the conclusion that I was trying to rip off Centerlink or put my hand up for something I was not entitled to seem a bit harsh and disappointing if that is first thought your mind went to, if I was trying to do that why on earth would I be asking for advice on how to correctly and truthfully report to Centerlink
    Mindy
    7th Oct 2014
    1:28pm
    The comments were directed at the advice from Niemakawa.
    niemakawa
    7th Oct 2014
    1:41pm
    Mindy let me explain as you have come to the wrong conclusion. For reference ,to whom it may concern. Firstly it was not advice, but just informing the writer of a legitimate means of receiving a pension, should someone MEET the criteria, according to the Centrelink rules. Unfortunately there are couples who for reasons of their own choose not to continue with a relationship but have to remain in the same home. It is not unusual. I am certainly not, as you seem to suggest, encouraging anyone to "rip" off the taxpayer. I am a taxpayer myself and want my hard earned dollars used wisely and fairly. Telling lies or avoiding ones' responsibilities is for the fool hardy. Now that is good advice for you to follow. So an apology from you and others will suffice. Thank you.
    Polly Esther
    7th Oct 2014
    2:38pm
    Life.
    Receive something - whine and moan - it's never enough.
    Wonder how the neighbours are getting on - no not on your nellie
    I'm alright Jack - stuff the neighbours.
    Second thoughts? No I'm not getting all that I want. I want more.
    The bloody government won't give it to me and hates my guts.
    Well? I've got to blame somebody.
    That's life.
    Blossom
    7th Oct 2014
    3:24pm
    Well said. Most people should be grateful for what they achieve or receive.
    There is a huge difference between want and need. People can be so selfish.
    I am lucky. I have good neighbours and we help each other. but we don't "live in each other's pockets" as the saying goes.
    I do however get annoyed at the way the Govt. spends and wastes some of the money we pay in taxes.
    Not Senile Yet!
    7th Oct 2014
    5:52pm
    Sorry but you have all missed the Point!!!
    Because the Governments'....and I mean both Parties.....miss-manage our Tax Dollars.....Yes they do!......it is unreasonable for them to expect the people on fixed incomes/pensions to continually have cut back imposed upon them in the Name of Balancing the budget!!!
    Inflation...all by itself.....have eaten into the real value of any pensions...welfare is an American word.......and eroded them into the useless basket when it comes to making ends meet.
    For those who do not comprehend.....this change is going to demolish your retirement even further when added to inflation!!!
    This is not about Whingeing...as the Politicians conveniently label it!!! .....this is about the invasion of the American attitudes of ....well it's your own fault.......or it's not my problem!!!
    Think this through more carefully......it may be you who has had the misfortune for whatever reason to end up reliant on a pension.
    The Government id having a bob each way here!!!
    They tax the Super (which has been made compulsory by them) and then they Deem it against the Pension to minimise their payout on same.
    Then they try to convince you that they are saving you money (tax) whilst signing up for a Billion dollar Aircraft Purchase contract with what they are saving!!!!
    Vietnam set us back economically for 10 years when they spent money they did not have.......now they are at it again!!!!
    These cutbacks and squeezes are from the people who have no way of earning or replacing that income!!!!
    These are the same people who financed and built the New Parliament in Canberra and most of our current infrastructure of hospitals and roads and Public Transport when they payed tax and were employed!!!
    This is not good enough.....they are buggering up our economy by copycatting the American Policy of Greed is Good!
    As for the Anti-Discrimination Laws......what good are they when the Governments have exemptions from them applying to them????
    Both Major Parties are not setting a Good example for the Voters and do not deserve your vote!!!!
    I suggest that if you want CHANGE...then first you must CHANGE how you vote.
    Our Real Estate is overpriced and it only works in favour of the Investor...they are robbing the younger generation of the Great Aussie Dream of owning your own home.....just out of greed!!!!
    Wake up......sleepy Heads!!!
    Housing is unaffordable NOW.
    30 years ago.. a house and land was only $120,000 to $150,000.....about 4 or 5 times an average wage....NOW the land alone is worth more than a house!!!! Inflation gone MAD!!!
    We won't even mention the housing shortage and what that has done to drive up the price of Rents!!!
    When the bubble bursts.....people will be ruined.....but the rich will just buy it all up and make even more!!!!
    Wakey Wakey....
    niemakawa
    7th Oct 2014
    6:21pm
    To paraphrase Ms Katy Perry ;" I'm wide awake, I'm wide awake" Thanks, you have made many valid points and I appreciate what you have said. Personally I believe that all older Australians (pollies excluded, maybe) whether a recipient of a Government pension or are self-funded in retirement should receive the "Health Card." No questions asked. No I am not the latter, before anyone asks.
    Mary
    8th Oct 2014
    1:40pm
    Unfortunately both parties have been hampered by people who voted for "other" would be senators and who now have the power to tell the government of the day how to run this country.

    As for buying aircraft - should we wait until they are on our borders to order defence machinery - we have land that other countries would envy - glad to have America on our side and fighting in other countries be fore we need to do it here.
    Not Senile Yet!
    30th Jan 2017
    1:32pm
    It should be considered ab Asset until it is Accessable!
    Not Centrelink doing this....they are the Meat in the Sandwich!
    It is the LNP that is putting the Screws on Odl Aged Pensioners...and it is Wrong because it is Age Discrimination! Nothing more and nothing Less!


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