Here is clarification of how the asset threshold changes will be applied.
The Age Pension asset threshold changes that will come into effect place on 1 January 2017 will result in some pensioners losing their payments. This has caused some confusion as to whether or not the Age Pension will be automatically reinstated should a pensioner’s circumstances change. To clarify the issue, we asked Human Services for some guidance.
What will happen on 1 January 2017?
You don’t need to contact Human Services unless your situation or finances change – your payments will be adjusted automatically on 1 January 2017.
What if my circumstances change – will I automatically start receiving my Age Pension again?
If your payment is cancelled as a result of the 1 January asset threshold changes, but at a later date your assets once again fall under the amount that stops you being paid, your payment will not be automatically reinstated.
You will need to re-apply. This is to ensure that Human Services is using the most up-to-date information as your circumstances may have changed in the meantime. The easiest way to lodge a claim and any verifying documentation is online.
How do I know if I fall below the asset thresholds in the future?
Asset test thresholds are indexed on 20 March, 1 July, and 20 September each year and details can be found on the Human Services website. YourLifeChoices also publishes the information as soon as it is made available so it’s important to keep your eyes on your inbox and check your eligibility against the new figures.
How will I know if my Age Pension will be reduced or stopped altogether?
You can view details of what the asset thresholds will be from 1 January 2017 and calculate by how much your Age Pension payment may be affected. Human Services also has an asset test estimator to give you an indication of the effect the changes may have on your payment.
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