Can you use cryptocurrency to hide money from Centrelink?

Lynda wants to know what the rules are regarding owning cryptocurrency and the Age Pension.

Can you use cryptocurrency to hide money from Centrelink?

Lynda wants to know what the rules are regarding owning cryptocurrency and the Age Pension.

•••

Q. Lynda
Do you have to declare cryptocurrencies to Centrelink? Does it affect the pension? Is it regarded as income or an asset? Since the amount that is earned or lost can alter dramatically over a few days, does this have to be evened out at the end of the year? How would Centrelink find out if you didn't tell them?

A. Yes, you do have to declare any cryptocurrency that you own to Centrelink. Failure to do so could result in serious consequences.

Centrelink treats cryptocurrencies as an asset, and it can have an effect on your pension as a result.

If financial assets owned directly by you (such as bitcoin or other cryptocurrencies) change in value by more than $2000, you are obliged to inform Centrelink within 14 days.

If the value changes daily, Centrelink applies a bulk valuation twice a year – in March and September – when pension indexation is applied.

You can request a reassessment of your benefits at any time, but you may find yourself disadvantaged, as Centrelink will automatically update the latest market values of your investment.

If you receive cryptocurrency as a payment for a service or similar, then it may be treated as income for assessment purposes and you really should check with a Centrelink Financial Services Officer for further clarification in that situation.

Do you have question regarding the Age Pension or other Centrelink benefits?

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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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    Nerk
    3rd Apr 2020
    10:00am
    Une way is buy gold coins and declare their face value
    leek
    3rd Apr 2020
    10:41am
    Nerk- My husband used to buy gold, I was shocked to see that it was only the exact same size as a $2 coin(or a $1). yet worth $1k or more. I can't remember the value at the time. But I thought, gee if we were ever robbed, I doubt the crooks would take the coins, they would have no idea of its value.
    Mariner
    3rd Apr 2020
    10:56am
    Thieves are not that stupid, they know a gold coin from a $2 one. One ounce is $1640 at the moment and that is just one little coin. Have not got any myself but I look at them at the coin dealer's window occasionally.
    Nerk's suggestion about declaring face value is good but would not wash with Centrelink as one Kruger Rand is an ounce but a South African Rand today is worth 10 Aussie cents. The big coin at the Perth Mint behind the glass case has a face value of $A100 and weighs I believe a ton. Very well guarded but interesting to have a look at. Do go visit the Mint when we can travel again.
    AutumnOz
    3rd Apr 2020
    10:36am
    Centrelink treats everything you own as an asset, even your ancient well used furniture, If you have enought money to get by on I suggest you stay out of the clutches of Centrelink.
    As far as I know Australia is the only country in the World to apply an assets test and an income test to people who have paid tax all their lives. Not only that but they change the goal posts at least once per year so people can no longer plan their retirement income with any certainty.
    PatrickRM
    3rd Apr 2020
    10:42am
    Avoiding Centrelink may be difficult for many. But I agree with your comments re Australia’s government pension system vs other countries.
    Mariner
    3rd Apr 2020
    11:00am
    Possibly also the only place where you get a pension without ever having had a job in your life. One has to look at both sides, you cannot really have a universal pension where a sizeable portion of the population never contributed a bean. Sad but true.
    Triss
    3rd Apr 2020
    2:33pm
    But universal or other type of pension, Mariner, the jobless will still apply, and get, a pension when they reach the age.
    ozirules
    3rd Apr 2020
    11:09am
    I'd stay away from cryptocurrencies as they seem to me to be just pyramid schemes like Ostrich farming which make the early investors rich and the late ones poor.
    Pass the Ductape
    3rd Apr 2020
    12:30pm
    Not advisable to try a work-around when it come to Centrelink - if caught out, the penalties for achieving this will make you cringe.
    floss
    3rd Apr 2020
    1:17pm
    Why do we need people coming into Australia on a work visa when we have record amounts of people on large C/Link payments .Please explain Scotty.
    johnp
    3rd Apr 2020
    1:33pm
    Good point Floss. Plus comments on universal aged pension are spot on as would be revenue neutral for the govt !!
    hyperbole
    4th Apr 2020
    8:11pm
    hiding money from Centrelink is fraud
    Mez
    15th Apr 2020
    1:13pm
    Hyperbole.......Bitcoin currency is a fraud in itself!
    I did some research and began writing comments informing my findings which resulted in my being blocked!
    What more proof did I need not to dapple in it and soon after the values dropped so I was further JUSTIFIED.
    It appears to be a scam in many cases and I am very surprised that Centrelink even considers it!
    crypto pro
    2nd May 2020
    10:10pm
    Cyptocurrency is the future money. Follow me for tips on how to trade Cyptocurrency, also if you wanna trade with me. here is my email flanmustelafu@gmail.com


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