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Where to post enquiry about effect of asset sale on pension rate?

Hello, am new to posting so apologies for incorrect procedure.

I have a boat  with "current market value" of $18000 in my Income and Assets schedule.  There has been an enquiry about my possible wish to sell and pricing.

I am aware I would need to notify DHS of any sale and the price received.

My queries are, 1. what immediate effect would a sale for $10000 have on my pension rate?  2. How long, if at all, would the change last, or 3. would it be permanent?

Have searched everywhere that I can think of and have not been able to find the answers.  Thanks greatly for any responses.

8 comments

Have you tried the My-Gov website under Centrelink and Pension Asset Limits?

I would imagine as you have it already included in your assests you would be fine but I guess you have to still make them aware of the sale and the amount -- -- 

Thanks Tanwin and PlanB for your responses.  Unfortunately, I am no closer to knowing the answer to questions 1. 2. and 3.

Has anyone sold a large asset and then advised DHS of the sale amount?  Did DHS treat this as cash in your pocket and reduce pension payments "accordingly"?

Thank you.

You had a $18000 asset as noted with DHS. You sold it for $10000. You now only have a $10000 asset, so your pension my rise.

Why is this so difficult to understand?

With respect, it is easy to understand the pension could rise marginally because of a reduction in assets.  However, I expect a hit to immediate payment(s) owing to the new $10,000 CASH.

So you are suggesting there is ZERO consequence of suddenly having $10,000 cash "in my pocket"!!!  That is the main question and it has not be answered as yet...  

 

If its only worth $10,000 then it should be valued at $10,000 not $18.000 with Centrelink. Remember Centrelink valuations are fire sale prices not insurance valuations. 

Thanks, but the value stated applied and was used when the pension was applied for a few years ago.  And yes, if I do not sell, then I should look at changing the asset price.

You need to update Centrelink within 14-days that your financial (+assets) change in value by $2,000. You can do this online if you have an account with myGov. So, if you declared $18,000 but now the value is $10,000 you should report this update. Effectively, if you are on a full pension, no change to your pension will occur for a combined total of assets at around $150,000 (excluding the home that you own to reside in). There are two parts to assessing your pension payment 1. The Deemed Income from your financial position calculated on the amount of your cash and investments that generate your personal income , eg - Interest earned. 2. The Assets Test, whether your Assets exceed the Threshold allowed. If you haven't got an account with myGov which will give access to Centrelink, Medicare.myHealth etc, then you should establish one. It will save you precious time.  Of course, if you need advice from Centrelink then phone them but expect a long wait for someone to answer your call.

Go to this website to work out your pension position.

http://www.yourpension.com.au/APCalc/

The 18 grand r deleted as an asset, n your bank account increases by 10 grand  so you r $8k better off. If u r already over the asset test this will help you as DHS reduce your pension by $3 x every $1k u have over the threshold, i.e. $8k x $3, u r $24 better off.

If u r already below the threshold, this will not make any difference at all.

U can either log into your centrelink account n do it yourself, or u may want to call them n they will do it x ya.

Makes sense?

Thanks for the informative reply.  My dilemna I guess was how DHS treated cash.  Had worried that they might decide that with $10K in the pocket, I would not require a few payments...

Seems this is not the case which puts me at a bit more ease...Thanks again to all...

But what happens if you don't bank the $10k but put the cash in a tin at home?!

Yes, I know you will loose any interest but will DHS ask where the money went?

 

Finally, someone else who is thinking in a similar fashion to myself.  Yes how would DHS interpret the new cash?  So perhaps if the $10K was, so to speak, "in a tin at home", could DHS determine that they could delete a payment or two as I do not need it???

Thanks for the reply.

Re: Southoz ... effect of asset sale on pension rate ... where to post enquiry?

Seeing as though it is entirely a Centrelink matter re one particular Aussie individual's assets:

I'm bemused by this query ... why not ask the horse's mouth .... AND

... contact Centrelink for a definitive answer.

8 comments