Is your account-based income stream currently grandfathered (ie taken out prior to 01/01/15 and you were already in receipt of a Centrelink payment)

You must report the commutation within 14 days of receiving it, you need a Centrelink Schedule from your provider, the recalculation of income against your pension commences from the date of the commutation, not retrospectively. Grandfathered income stream only benefits those whose Pension is calculated under the income tets, not the asset test.

Jack, you need to talk to Centrelink. We took out an extra payment on line to buy a car which was treated as if we had taken the whole amount over the 12 months which is the situation you’re trying to avoid.

It could even see your age pension cancelled if it takes you over the income threshhold for the year. Fortunately, we were able to convince the super fund that we really wanted a lump sum commutation. They fixed it their end and it wasn’t treated as income. While the Centrelink calculation for deeming when you take out a commutation is complicated, and carried forward to future years it doesn’t make much difference.

McDaddy, I know how it works, and have a grandfathered Scheme, Income streams are not deemed, lump sum withdrawals most definitely are. The calculation is on the Centrelink website. I actually read his question as asking if he could just take an extra payment as he saw a lump sum commutation as detrimental. An extra payment is treated as a commutation as you have advised but if not taken correctly could see him lose his pension. 

Once again to answer your original question, your Centrelink Pension will change from date  of commutation.

Re read, ‘ for me taking a commutation would be detrimental’. I understand what he’s trying to do as fell into the same trap. It has to be a commutation for minimal affect on his age pension.

Lump sums taken from pre 2015 Super have different deeming formula regardless as to what the money was spent on. Not going to get into an argument here, but my information is correct and easily verified. However, it doesn’t make much difference

You're right, not much difference. The terminology of deeming is how post 2015 Income Streams are assessed for income. Pre 2015,use a formula of Purchase  Price minus lump sum commutations divided by the life expectancy factor. 

Great we both agree. Of course, it’s the life expectancy of you or your spouse whichever is the youngest. With a much younger spouse, and to maximise age pension just don’t lodge a Death Benefit Form with your fund

We have just bought a demo suv ($32,500) by withdrawing my super, which actually closed the account. We will use the rest of the super (approx $2000) towards our holiday. When notifying Centrelink of the cars current ex showroom value now, what % would be a reasonable figure to give, as the value for assesment purposes?

$25k sounds reasonable and something to show your super fund is closed.