‘Why has my pension payment been reduced?’

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Max’s pension has been cut from $574 a fortnight to just $220, and he wants to know why.


Q. Max
I am on the Age Pension and was receiving $574 dollars a fortnight. My wife has just reached Age Pension age, has now retired and successfully applied for the Age Pension. We now both receive $220 a fortnight which in total is much less than I received before she applied. Should we find out why or is this standard practice? Can you help?

A. Without knowing your exact circumstances, it is difficult to know precisely the reason why you are now receiving less pension.

However, one of the reasons this reduction can occur once your wife has her pension approved relates to the new assessment for you under both the income and assets tests.

While one member of a couple is not of pension age, the older member of the couple may be eligible for a higher rate of pension. This is because any superannuation held in the younger partner’s name is not counted as an asset until they reach Age Pension age.

In this situation, the age pensioner will only have the value of their superannuation counted under the assets test and the net value of the pension they receive, after deducting the purchase price of the pension, under the income test.

The partner who is not of Age Pension age does not have the value of their superannuation counted unless they are receiving a pension.

However, upon retirement, that sum of money will now be included in your combined assets, and deeming will be applied under the income test.

This is my best guess as to why you are now receiving less pension. However, if this does not describe your current financial situation, you should definitely make an appointment to visit a Centrelink Financial Information Services Officer who should be able to explain the reasons behind your changed situation.

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Written by Ben


Total Comments: 17
  1. 0

    Obviously your assets or income combined has reduced you pension but then again centrelink can do whatever they want without any breakdown whatever as they don’t have to give you that information. I’d be worried now about getting a robodebt in the near future again without any breakdown or explanation.

    • 0

      Such is the climate of fear generated by this current despotic style of governance…… forewarned is forearmed… price of liberty and all that…

      In English – too many people have been burned by now by this style of government action, in many ways, and whatever trust they may have once had in the proper running of their country on their behalf by politicians is gone…

      We need a Hong Kong or a West Papua solution – they step out of line – so do we – en masse.

    • 0

      I totally agree with Trebor, the Lying Nasty Parasite Party is treating Australians like prisoners.

    • 0

      Quite right, Karl & Trebor, Gestapo tool Robodebt is something to watch out for. Yes, Trebor, add Paris Yellow Vests to the list of action options to emulate…no updates nowadays on mainstream media about them these days, wonder why.

      TinTin, Labor would be no different, last action by them was to increase the Pension Age to 67, besides being the party which delivered the Assets Test and Deeming for the Income Test. They also refused to reverse the Libs nasty Asset Test changes.

    • 0

      Totally agree with you.

    • 0

      BS, he gets a letter explaining what the Pension is now going to be and what total and income and assets are used to determine that. CL can’t do whatever they like either. If he had access to mygov and he could easily see what assets are being assessed.
      Some people prefer to stay in the dark and whinge.

  2. 0

    What extra information you gave Centrelink, without knowing that it is hard to know why this has happen.
    As stated it is the included Superannuation of your wife’s, as the rest should be the same.
    Lump sum Payment on termination as well.
    Might need a Jackhammer to Breakdown the Brick Wall they put in your way though.

    • 0

      a married couple does not receive 2 single pensions they receive 1 and a 1/2, why do you think years ago the government forced all couples to register as married same sex or whatever.

    • 0

      Where did I say 2 single pensions.
      Couples never receive 1 pension, they receive half a couple pension then which 1 catches up they will receive a full couple pension unless same age.
      This is not the in case mentioned.
      It is the Unstated Amounts/Entries on OAP application has made the reduced amount occurred.

  3. 0

    DEEMING RATES on cash Term Deposits!

  4. 0

    Same old story pick on the elderly and keep paying the lazy youth without question….

    • 0

      Lenyjac. Now, you know the last part of your comment is not correct. There is 1 job vacancy for every 15 to 16 job seekers http://unemployedworkersunion.com/job-seekers-v-job-vacancy-data/ People do it hard on the paltry Newstart allowance, & Centrelink take money off them if they do not comply with the strict conditions.

    • 0

      Justsane – HUH! – ‘take money of them if they don’t comply’ – believe me, they are experts at knowing the lurks to not comply. I was out walking one afternoon in my local park – saw a Toyota Rosa campervan parked there and got talking to the young ones as I have done some travelling. There were 4 of them, mid 20’s. They told me they had been travelling for 8 months, and all were on Newstart. Told me this brought in $2120 each fortnight: they each kept $50 a week for their own personal use – the balance went in the kitty. $1720 to live on travelling for the fortnight was pretty good! I asked how they managed with the Newstart job requirements and they practically laughed. One of them said he lived in a high employment area, where jobs were scarce, so they all used that address, and in all the previous 8 months, not once had they been called in about job requirements. None had ever had their payments reduced or suspended.
      They said if they found a cash paying job along the way they would do it but no longer than 2 weeks,and had to be for all of the 4. They planned to do this for at least another 12 months before heading overseas. So Newstart was working very well for them.
      It’s the people over 50 on Newstart that need help. Having been there, all I can say is thank heavens I am now on the Aged Pension.

  5. 0

    Happens to most of us with a slightly younger partner. Super does not have to be declared and then with pension age for the younger spouse it becomes visible. Happened to me and I was fully aware of it – sure a bit disappointing but then . . . thems the rules!

  6. 0

    Don’t feel too sorry for old mate, apart from the value of his home they must have app $720k in assets, still getting app $11500 Pension between them. They’ll be ok.

  7. 0

    labor many years ago gave single pensioners a rise, how did they pay for that by reducing the married pension the second person used to have 3/4 of a single pension. and for years they flapped their hawk-like wings crowing about how they help single pensioners, (which they did) but at a real cost to married couples, another example of the Orwellian duopoly government that are our masters. As we all know 2 people do not live that much cheaper than 2 individuals, but like the bank rate deaming do they care?? I think not.



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