Will my pension be reinstated if asset values fall?

Geoff believes the falling property market makes him eligible for the pension again.

Devalued assets and the pension

Geoff had his pension cut in 2017, but wonders if the falling property market makes him eligible again.

•••

Q. Geoff
I am one of those unlucky people whose small part pension was cut off on 1/1/2017 under the new asset test. My assets include two investment properties that have risen in value over the years. You would be aware that over the past two to three years property prices have dropped dramatically. I believe that my total assets now are below the $853,000 limit, but how does Centrelink assess the value of each property!

A. Centrelink uses current market value when it assesses the value of your real-estate assets. This is different from how state and local government value properties.

Centrelink will then index the value of residential properties yearly to keep them up to date.

If Centrelink is unable to index a property’s value for some reason, it will arrange a valuation when needed.

If you believe that the market value of your two properties will bring you below the asset test limit for the pension, you will need to reapply for the Age Pension as it will not be automatically reinstated.

Are you eligible for an Age Pension? Do you know your rights? The PensionChecker™ tool has all the information you need.

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    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 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 Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.





    COMMENTS

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    Magic Touch
    24th Jun 2019
    10:27am
    I had this type of problem, long ago when you are on the edge and this are the hard working australian try very hard to be a SFR but get stuck in this way. So I finially give up because of all the running around.
    You know when you get old all the sickness start coming, so that why i had to give up than i can die easily and not have to live longer under this type of rules.
    Cowboy Jim
    24th Jun 2019
    10:43am
    You seem very pessimistic with all those assets in your possession. Try to enjoy the fruits of your labour, once you spent a sizeable amount you will get your part pension like I do. You need to be seriously rich to be a SFR; I prefer to keep my pension card with less assets.
    Magic Touch
    24th Jun 2019
    11:46am
    Thanks Cowboy Jim for your advice but you work so hard to save the moneys to pay the banks at the end yourself get sick when you glow old. You get the pension card and a very small amount of pension moneys. But the rules change then no pension payment and with senior health care card it,s a bull shit. You already not working and 72 years old it,s not a pensioner and still want you to go back to work to get end meets so it better to die early than suffer the sickness and make the Doctors rich.
    johnp
    24th Jun 2019
    11:59am
    As time goes by I am tending to agree with Magic Touch. Current Aust govt probably likes the euthanasia debate; if it means that it becomes more popular they will get more pensioners off their books.
    Magic Touch
    24th Jun 2019
    12:18pm
    Thanks johnp you see the whole picture in which other did not saw it.
    Paddington
    24th Jun 2019
    3:33pm
    I think you are far from unlucky. Ask a homeless person or a single pensioner with no home and having to rent. $853,000 is far too much to be still wondering about a part pension. I know people will attack me but I cannot accept that this as a problem.
    Give one home to a homeless person and give the other to a single pensioner renting and freezing this winter. Or give both to families who are homeless, either way problem gone.
    Anyone with a home and getting by is lucky as many have nothing.
    Cowboy Jim
    24th Jun 2019
    4:24pm
    Pure Jeremy Corbyn, Paddington. But with that you'd sap the get-and-go spirit that makes great nations. Never do anything, never accumulate anything and every one else will look after you. The 'homeless' here in my area I would consider 'hopeless' and most of them are self-made.
    Paddington
    24th Jun 2019
    4:39pm
    Many homeless have mental health issues but there are also families who have no home.
    I take your point but it should not be seen as a problem rather how lucky am I to have this even if it just your own home because there is so much poverty in the world.
    inextratime
    24th Jun 2019
    3:59pm
    What people forget is that home owners whose houses have increased in value phenomenally over the past 30 years have never actually done anything. i.e the house produced nothing but is now worth squillions more. A renter on the other hand has to pay rent until they die with no return on the total rent they have paid. The difference is that example one could afford a deposit, example 2 probably could not. In the above example, surely Geoff should sell at least one of the investment properties (hence the name) invest the proceeds in an annuity and set up an monthly draw down to live off. While he states that property has decline dramatically in price, it also increased dramatically, probably more dramatically than it decreased. When he has withdrawn enough income to be below the pension threshold he can then apply for a part pension.
    Cowboy Jim
    24th Jun 2019
    8:50pm
    Another way would be, inextratime, a renter could have invested in gold at a monthly interval without going through the real estate route. No saving a deposit and then buying a place like I have done with stamp duty and everything else and still have something to show today. Home owners only have a place today mostly because we were forced to save to pay off the thing. It simply is the discipline of saving than renters today regret. A lesson from Mum and Dad - "rent money is dead money". I laughed at that when young but not any more as this country is obsessed with property ownership.
    inextratime
    24th Jun 2019
    3:59pm
    What people forget is that home owners whose houses have increased in value phenomenally over the past 30 years have never actually done anything. i.e the house produced nothing but is now worth squillions more. A renter on the other hand has to pay rent until they die with no return on the total rent they have paid. The difference is that example one could afford a deposit, example 2 probably could not. In the above example, surely Geoff should sell at least one of the investment properties (hence the name) invest the proceeds in an annuity and set up an monthly draw down to live off. While he states that property has decline dramatically in price, it also increased dramatically, probably more dramatically than it decreased. When he has withdrawn enough income to be below the pension threshold he can then apply for a part pension.
    Stoney
    26th Jun 2019
    9:11am
    Sell your property, buy a small pub, stop worrying, and have a few laughs and lots of holidays. Plenty of time to stop work and do nothing when you get to ninety.
    Magic Touch
    26th Jun 2019
    9:39am
    Stoney i had been thinking like you before but think change when you come to certain age that Rheumatoid Arthritis attect you.
    You know this Arthritis just came when you wake up the next morning your fingle just can not bend. Before this happen when i go to centre link to fill up form my fingle start to shake when i try to write, but you don,t hold any thing it,s okay.
    So sickness it,s very hard to tell untail you come to this age or when time come as i can,t tell. It just happen and Doctors also cant do much.


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