Centrelink Q&A: Will good deed affect Maria’s pension?

Maria is borrowing to help her daughter, but is concerned about the ramifications.

Will good deed affect Age Pension?

Maria is borrowing money to help her daughter with a credit card debt, but is concerned that these funds may affect her pension payment.

Q. Maria
I’m helping my daughter pay off her credit card and I’m afraid this might affect my Age Pension. I applied for a balance transfer on my credit card and this was approved by my credit provider. I was issued with a bank cheque, which I deposited in my account. I’m just worried the bank cheque will affect my Age Pension. I hope Centrelink will not penalise me with regard to this transfer because it’s not my money. I will withdraw it once the cheque is cleared, and use it to pay off my daughter’s credit card. Will this be okay?

A. You have 14 days to advise Centrelink of any changes to your financial arrangements so given that the cheque is likely to be cleared and the money withdrawn by then, you should see no change to your Age Pension.

However, as Centrelink may in the future request details of where the money came from and where it went, it would be prudent to keep a copy of the transaction records on hand.

If you have a Centrelink question, send it to newsletters@yourlifechoices.com.au and we’ll do our best to answer it, or find someone who can.


    Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.


    To make a comment, please register or login
    Karl Marx
    3rd Sep 2018
    I don't understand why anyone would go into debt to bail out a daughter or any other family member. Obviously she hasn't the saving to help out so why go into debt & cause even greater hardship on yourself. Maria should understand why her daughter has debt then help the daughter to set up a budget. This will not solve the problem of the daughters spending unless she gives the card to her mother so she can't use it.
    In a nutshell, this is a really bad move
    3rd Sep 2018
    I agree.
    3rd Sep 2018
    Also totally agree. No matter how much you want to help your child, looking at it another way, your daughter is in debt and she doesn't mind you going into debt to bail her out. So what happens next time she gets in debt, as undoubtedly she will as this certainly won't teach her anything.

    3rd Sep 2018
    Give your daughter a suplementary card thats linked to your credit card.
    That way you can pay for all her purchases if ever she is unable to repay the debt
    Karl Marx
    3rd Sep 2018
    Very very bad advice, just use your mother as an ATM. The daughter won't have the debt the mother will.
    3rd Sep 2018
    Yes - then there is no problem with Centerlink

    I'm helping the mother with avoid her pension being affected
    3rd Sep 2018
    if it was ever discovered that the Mother was paying for purchases that the daughter made on the card account, would be considered gifting as well.
    3rd Sep 2018
    Same as she buying the stuff and giving it to her daughter

    Highly Unlikely centerlink would even look at her individual credit card statement
    3rd Sep 2018
    There could be a good reason why the daughter needs her name off the card which has been omitted from this report. The reason could change a response to this.
    Just be upfront with Centrelink. Let them know the whole story.
    3rd Sep 2018
    This will be seen as gifting, but depending on the amount may still not impact AP.
    3rd Sep 2018
    It is time for all of us (that means you) to rant at our MPs and Senators daily to take action for human decency and a huge stress reduction for pensioners

    A pension is not welfare.

    Most economist say we will save taxpayers money by dropping asset testing because of the massive overheads cost in running Centrelink and the 10,000 conflicting rules.

    Hiring more Centrelink staff will only increase taxpayer’s costs for processing the creeping insane red tape monster system politicians and well paid bureaucrats have created.

    Help scrap it now. Become a hero.

    Even poorer New Zealand has a NO ASSET pension so it is cheaper and user friendly.

    Why worry that few million$ earners get it too. That is peanuts to them, not enough for a good vintage champagne.

    Do retired and retiring people really look forward and want 100++ visits to/from Centrelink and be part of 3 million waiting queues and lost calls?

    Does your MP really like being part of the system that allows this indirect abuse of the elderly?

    This abuse is actually sponsored by our government and forced down to Centrelink and borders on a criminal act.

    Why do MPs normally compassionate persons let this Centrelink abuse happen at taxpayers’ expense?

    Some opposition and independent MPs stand to lose their chance at being part of the needed government changes

    We all (that means you) need to tell our MP and senators every day that these criminal asset tests for a pension must be dropped now.


    Please help yourself and others, today and every day, pass this demand on to all government, opposition and independent MPs and senators who could help us to get a fair deal on pensions

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