1st Jun 2018
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Could illness compo affect Age Pension eligibility?
Author: Janelle Ward
Will illness compo affect pension?

Margaret receives income from her superannuation fund after a battle with cancer that left her unable to work. She wants to know how that will affect her eligibility for an Age Pension.

Margaret:

My husband has just turned 65 and intends to retire in November and apply for the Age Pension, for both him and myself. I do not work and have not worked for nearly 12 years.  I am not 65 until 2020. However, I do receive a permanent disability payment from my superannuation company from when I was diagnosed with cancer. I underwent various medical procedures, which left me unable to return to a my permanent position, and my employer was unable to provide me with a suitable job that fitted in with the permanent physical disabilities I was left with.

Will my disability payment affect our Age Pension?

A: Centrelink bases your eligibility for an Age Pension on a number of factors, one of which is a means test. Under the means test you are assessed on your income and assets and this determines, how much, if anything, you are paid.

Your disability payment is not an exempt income and will be assessed when you make a claim for the Age Pension.

Under the income test, a couple living together can earn up to $300 per fortnight and still be eligible for a full Age Pension. However, the pension will reduce by 50 cents for every dollar over $300.

An Age Pension is also assessed under the assets test. The asset test limits for renting couples is $1,040,000 and for home-owner couples is $837,000, excluding the family home.

If you need further information about how your eligibility for the Age Pension is assessed, you can read this explainer on our website.

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    COMMENTS

    To make a comment, please register or login
    Marian
    4th Jun 2018
    10:24am
    The all Australian Pension system & Centrelink include the second Fascist minister M.Keenan is the most corrupt crime against all pensioners international law & Totalitarian Crime against Human Rights in the system is not one on the Governments who understand human Rights the all parliaments is as one beg corrupt gestapo against all rights Citizence The is not human dignity in the system for citizence
    McDaddy
    4th Jun 2018
    10:57am
    Not sure what you are saying. Not making sense.
    TREBOR
    4th Jun 2018
    11:10am
    I get the gist.....

    The whole system is a shamozzle as a matter of policy, and permits overbearing governments to make up rules as they go along and take whatever they want, which is a disgrace against humanity.

    Sort of.
    TREBOR
    4th Jun 2018
    11:35am
    Funny title for an article - any payment you are receiving can affect pension.
    TREBOR
    4th Jun 2018
    11:38am
    From my readings here and elsewhere, it seems to me the biggest issues about pension are:-

    a. the disparity between treatment of home-owners and non home-owners.

    b. the disparity in treatment between singles and couples.

    c. the way in which any income affects pension and/or is treated for tax (often that can be a double hit, in theory at least)

    d. the assets test in and of itself.

    It seems to me there is a simpler way to administer pension without all this paperwork.
    McDaddy
    4th Jun 2018
    11:48am
    What a great system that allows couple to have up to $78k in income per annum or up to $837k in assets apart from family home before not getting any Age Pension.
    TREBOR
    4th Jun 2018
    12:30pm
    In that sense only, McDaddy, you are correct. All well and good for those who have an income over and above pension, but the issues I've outlined cover a different set, apart from reduction in pension due to regular income.

    We have some here who are SFRs who say they get no pension, yet have a minimal income nowhere near that $78k.

    We seem to have a few problems with the administration of retirement packaging.
    Sundays
    4th Jun 2018
    12:55pm
    I agree Trebor. However, if you don’t wish to spend any of your capital, or draw down more than the minimum that is your choice. The system does not reward savers and is illogical. Rather than rail against it you could work within it. I’m expecting to be shouted down!
    McDaddy
    4th Jun 2018
    1:22pm
    Who are these SFRs who have minimal income but no Pension. Are they ones with Assers over $837k?
    GrayComputing
    4th Jun 2018
    11:57am
    It is time for all of us to rant at our MPs and Senators to take action for human decency and a huge stress reduction for pensioners

    NO ASSET TEST FOR A PENSION EVER AGAIN!
    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

    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 need to tell our MP that these criminal asset tests for a pension must be dropped now.
    NO ASSET TEST FOR A PENSION EVER AGAIN!
    GeorgeM
    5th Jun 2018
    9:11pm
    Agree, all MUST write to their MPs and threaten them (and act) to vote them OUT unless they listen.

    This case yet again illustrates what a mess of a system we have, and the best solution to have Universal Pension with NO tests other than Age (65 yrs) and Residence (say 15 years), with all income above that (barring an allowance for a capped concessionally taxed income from Super say up to $600K) tax at normal marginal rates.
    Drewbie
    4th Jun 2018
    4:13pm
    G'day Everyone;

    Regarding Pension eligibility & how Super payments affect it, I agree with all of you & especially Gray Computing. " No Assets Test for pensions . . . a pension is not welfare ". In my view, a pension is the current young & middle aged generations of taxpayers saying . . . " thank you for your massive contribution & sacrifices in making this Country we now enjoy today ".

    What's said next is a little tongue in cheek, respectively & respectfully.

    There actually are many thousands of Aussies of normal & early retirement age, who have figured out they'll enjoy a much better overall quality of life ( secure & safe too ) by living long-term overseas, once everything regarding that is arranged with wisdom, careful research & very good advice.

    Many have even sold all they have, despite being told they are crazy, most carefully invested their financials, made the big leap & are now living quite inexpensively in Asia & elsewhere ( all inclusive - per month ) for the roughly the same $$$ it would cost per week to continue struggling in Australia.

    Yes, of course there are serious concerns/issues to consider wisely beforehand. For those who might disparage, I challenge you to Net search & read at length " International Living Australia ". It's no bogus, pie in the sky website or Newsletter & its been successfully & popularly operating for at least a decade at last count, give or take a few years.

    I'd love to do it, but I'd have to 1st win the Spanish EL Gordo or Aussie's Powerball 1st Div to afford it.

    Cheers all.
    whatsupdok
    4th Jun 2018
    4:42pm
    Dual citizenship USA /Australia. Lived here since 1990. On the OAP and living outside Aust. over a year at a time. I get the full pension because I'm grandfathered under the pre 2014 change that I need 35 years. Only stipulation is if I stay here longer than 6 months I lose the grandfathering, go figure. Ends up I get my USA Social Security as well as my OAP with an adjustment being about 50% more than just the OAP. Lucky me.
    MD
    5th Jun 2018
    8:35pm
    The best of both worlds whatsupdok, or just another little Aussie bleeder ? Good luck.


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