Contents
- Couples: Age Pension changes since 1 January 2017
- Single people: Age Pension changes since 1 January 2017
- Some good news for FULL Age Pensioners, and bad news for other Centrelink recipients
- What are the Age Pension assets test thresholds since 1 January 2017?
- How does the harsher Age Pension assets test work?
- Losing all Age Pension since 1 January 2017: then automatically receive CSHC
- Note January 2016 Age Pension changes affect defined benefit pensions
- How do the Age Pension rules work generally?
- For those interested in nitty-gritty statistics on the impact of the Age Pension changes…
Note: Changes to the Age Pension assets test are now law, and took effect from 1 January 2017. The successful passage through parliament was due to the Greens supporting the changes announced by the Coalition government in the 2015 federal budget. Although the ALP opposed the changes when the laws went through parliament, the ALP has stated it will not reverse these changes, due to budgetary constraints. Since 1 January 2017 however, the ALP has publicly stated it may review the Age Pension changes. Continue reading to discover the new thresholds, and to find out how the stricter Age Pension assets test will affect you.
More than 330,000 Age Pensioners have had their Age Pension entitlements cut, with at least 100,000 of those affected Australians losing all Age Pension entitlements, which took immediate effect from 1 January 2017. The higher than predicted numbers is due to some miscalculations by the federal government: it looks like many thousands more are affected by the January 2017 changes than first anticipated, due to the lower-than expected assets test thresholds.
Couples: Age Pension changes since 1 January 2017
We were told by the federal government, that, as a couple, if you received the Age Pension, and you owned more than $823,000 in assets including super and all other assets (but excluding your home), then you would no longer receive the Age Pension from 1 January 2017. For those Age Pensioner home-owning couples who owned less than $823,000 in assets, but more than $450,000 in assets, then you were also warned to expect your Age Pension entitlements to be hit. All of this continues to be the case, but the harsher Age Pension assets test for a couple actually cuts out at a lower amount – $816,000!
Oops! The federal government had based the earlier information on projected Age Pension rates as at 1 January 2017, and Age Pension rates are actually lower than anticipated. What this boo boo means is that the cut-off point for a PART Age Pension is even lower than $823,000 for a couple. According to Centrelink (DHS), the cut-off point is now $816,000 for a home-owning couple. My estimate is that many more thousands of Australians than predicted received a Centrelink letter during December 2016, and a financial shock since 1 January 2017. Until 31 December 2016, a home-owning couple could have up to $1,178,500 in assets before they lose the Age Pension. You can find more details on the specifics, including tables for couples, later in the article, or if you are simply seeking the latest assets test thresholds, then see SuperGuide article Age Pension: Assets test thresholds applicable from July 2017.
Note: Higher assets test thresholds apply for Age Pensioner couples who don’t own their own home (for more information, see article link immediately above, table below and tables at the end of the article).
Single people: Age Pension changes since 1 January 2017
Likewise, we were told by the federal government, that as a single person, if you received the Age Pension, and you owned more than $547,000 in assets including super and all other assets (but excluding your home), then you lost your Age Pension entitlements from 1 January 2017. For those Age Pensioner home-owning single people who owned less than $547,000 in assets but more than $250,000 in assets, then you were also warned to expect your Age Pension entitlements to be hit. All of this continues to be the case, but the harsher Age Pension assets test for a single person actually cuts out at a lower amount – $542,500!
Another oops! The federal government had again based this information on projected Age Pension rates as at 1 January 2017, and Age Pension rates are actually lower than anticipated. What this boo boo means is that the cut-off point for a PART Age Pension for a single person is even lower than $547,000. According to Centrelink (DHS), since 1 January 2017, the cut-off point is $542,500 for a home-owning single person.
Until 31 December 2016, a home-owning single person could have up to $793,750 in assets before they lost the Age Pension. You can find more details on the specifics, including tables for single people, later in the article, or if you are simply seeking the latest assets test thresholds, then see SuperGuide article Age Pension: Assets test thresholds applicable from July 2017.
Note: Higher assets test thresholds apply for single Age Pensioners who don’t own their own home (for more information, see article link immediately above, table below and tables at the end of the article).
Some good news for FULL Age Pensioners, and bad news for other Centrelink recipients
Important: On a positive note, the assets test thresholds for claiming the FULL Age Pension increased on 1 January 2017, which means an estimated 50,000 extra Australians are eligible for the FULL Age Pension. On the downside, the harsher Age Pension assets test for PART Age Pension means an estimated 330,000 Australians lost Age Pension entitlements, with 100,000 of those retirees losing all entitlements. Since the PART Age Pension assets test thresholds are lower than first announced, we expect these estimates for Australians losing Age Pension entitlements to be conservative.
According to the federal government, an additional 50,000 lucky Australians receive the FULL Age Pension (rather than their previous PART Age Pension entitlement) due to an increase in the assets-test free area threshold, which took effect from 1 January 2017. The assets-test free threshold is the measure for the FULL Age Pension, that is, when your assets, excluding the family home, are valued lower than the threshold. You are then entitled to the FULL Age Pension, assuming you also meet the Age Pension income test.
Since 1 January 2017, the assets-test free threshold increased from the previous $209,000 for a single person (home-owner) to $250,000, and for a home-owning couple, increased from $296,500 to $375,000.
For non-homeowners, since 1 January 2017, the threshold increased from $360,500 to $450,000 for a single person, and increased from $448,000 to $575,000 for a couple who don’t own their own home. See Table 1 below for the list of thresholds to ensure FULL Age Pension eligibility.
Warning: The harsher assets test also applies to other social security pensions, including disability support pension, wife pension, carer payment, bereavement allowance, widow B pension and certain pensions administered by the Department of Veterans’ Affairs. According to the revised Explanatory Memorandum accompanying the legislation, the assets test also applies to parenting payment and allowances (widow allowance, youth allowance, austudy payment, newstart allowance, sickness allowance, special benefit and partner allowance).
What are the Age Pension assets test thresholds since 1 January 2017?
In the tables below, we outline the FULL Age Pension assets thresholds (Table A). In Table B, we outline the PART Age Pension assets thresholds, including what the previous Age Pension assets test thresholds were (from 20 September 2016 until 31 December 2016), and what the federal government said the UPPER asset thresholds (for PART Age Pension eligibility) would be as at 1 January 2017, and what the UPPER asset thresholds actually are, as at 1 January 2017.
Table A: Age Pension LOWER assets test thresholds (for FULL Age Pension) – Age Pension assets-test free area
| Homeowner | Non-homeowner | |||
|---|---|---|---|---|
| Until Dec 2016* | From Jan 2017 | Until Dec 2016* | From Jan 2017 | |
| Single | $209,000 | $250,000 | $360,500 | $450,000 |
| Couple | $296,500 | $375,000 | $448,000 | $575,000 |
Source: Updated and adapted by Trish Power, but the earlier version was adapted from, Revised explanatory memorandum, Social Services Legislation Amendment (Fair and Sustainable Pensions) Act 2015.
In Table B below, we outline what the Age Pension assets test thresholds were (from 20 September 2016 until 31 December 2016), and what the federal government said the UPPER asset thresholds (for PART Age Pension eligibility) would be as at 1 January 2017, and what the PART Age Pension thresholds actually are, as at 1 January 2017.
Table B: Age Pension UPPER assets test thresholds (for PART Age Pension)
| Home owner | Non-homeowner | |||||
|---|---|---|---|---|---|---|
| Until 31 Dec 2016 | Announced for 1 Jan 2017 | ACTUAL for 1 Jan 2017 | Until 31 Dec 2016 | Announced for 1 Jan 2017 | ACTUAL for 1 Jan 2017 | |
| Single | $793,750 | $547,000 | $542,500 | $945,250 | $747,000 | $742,500 |
| Couple | $1,178,500 | $823,000 | $816,000 | $1,330,000 | $1,023,000 | $1,016,000 |
How does the harsher Age Pension assets test work?
The stricter Age Pension assets test operates as follows: The taper rate for the assets test, which determines how much Age Pension you receive, reduces your Age Pension entitlement by $3 a fortnight for every $1000 of assets you own over the full Age Pension threshold, which took effect from 1 January 2017. Until 31 December 2016, the taper rate was $1.50 per $1000 of assets over the full Age Pension threshold. I explain how this harsher taper rate affects Age Pensioners later in the article.
Based on comments from readers, there appears to be some serious structural flaws in this change to the Age Pension assets test. For many Australians there is an incentive to restructure or sell down assets to ensure they don’t end up on a lower income than those receiving a FULL or PART Age Pension. For the latest sample of observations and reactions from SuperGuide readers see Age Pension assets test changes: Comments from readers.
More than 330,000 retired Australians have now lost some or all Age Pension entitlements overnight since 1 January 2017, while around 50,000 retired Australians become eligible overnight for a FULL Age Pension since 1 January 2017 (when before 1 January 2017 they were receiving a PART Age Pension). The Age Pension assets changes are:
- Harsher taper rate for PART Age Pension entitlements: The taper rate for the assets test, which determines how much Age Pension you receive, reduces your Age Pension entitlement by $3 a fortnight for every $1000 of assets you own over the FULL Age Pension threshold, which took effect from 1 January 2017. Until 31 December 2016, the taper rate was $1.50 per $1000 of assets over the FULL Age Pension threshold. In effect, the PART Age Pension threshold was cut by $362,500 on previous threshold levels for home-owning couples and cut by $251,250 for single home-owners, which is why more than 330,000 retirees lost entitlements from 1 January 2017, either partially, or fully. See tables later in the article, for how the new assets test hits retirees.
- Higher threshold for FULL Age Pension: Since 1 January 2017, the assets-test free threshold increased from $209,000 for a single person who is a home-owner to $250,000, and for a home-owning couple, increased from $296,500 to $375,000. The expansion of the lower threshold means 50,000 more Australians are entitled to a FULL Age Pension, who previously received a PART Age Pension, and the government estimates that increasing the threshold for FULL Age Pension entitlement, has benefited 170,000 retired Australians. The assets-test free threshold is the measure for the FULL Age Pension, that is, when your assets, excluding the family home, are valued lower than the threshold. You are then entitled to the FULL Age Pension, assuming you also meet the Age Pension income test.
In anyone’s language this is a retrospective change to the Age Pension rules and hits retirees receiving a PART Age Pension. In most cases, these retirees are not in position to return to work to replace the income they have lost since 1 January 2017, and the Coalition government, with the support of the Greens, has essentially devastated the retirement plans of several hundred thousand Australian retirees. Although the ALP’s position is not much better, with Opposition leader Bill Shorten publicly stating that the ALP will not reverse the changes with the help of the independents, even though the ALP opposed the passage of the legislation when it became law (although since 1 January 2017, the ALP has made noises about reviewing the Age Pension changes).
Background: On 7 May 2015 the federal government announced changes to the Age Pension assets test (and confirmed this policy in the May 2015 Federal Budget), affecting those retirees receiving a PART Age Pension. According to the then Minister for Social Services, Scott Morrison, around 326,000 retired Australians will lose some or all of their Age Pension entitlements due to a new, harsher Age Pension assets test. The announced changes are now law.
Losing all Age Pension since 1 January 2017: then automatically receive CSHC
According to the revised Explanatory Memorandum accompanying the legislation introducing the Age Pension assets test changes, “Those whose pension is cancelled will automatically be issued with a Commonwealth Seniors Health Card, or a Health Care Card for those under pension age [and receiving a different Centrelink benefit], without the need to meet the usual income requirements. Veterans whose service pension is cancelled under this measure will retain their Veterans’ Affairs Gold Card.”
For more information on the CSHC and relationship with the change to the Age Pension assets test, see SuperGuide article Latest retirement deal! Lose Age Pension, get Seniors Health Card, and for more information about the CSHC generally, see SuperGuide article Are you eligible for a Commonwealth Seniors Health Card?
Note: The Age Pension federal government legislation does not deal with state-based concessions, such as rate and utility discounts. You will need to check with your council and service providers, since these concessions are provided by the states, and to assist you with this endeavour, SuperGuide has prepared a comprehensive summary of state-based concessions for older Australians (see SuperGuide article Concession cards: Am I eligible and what entitlements can I expect?).
Note January 2016 Age Pension changes affect defined benefit pensions
On 1 January 2016, the government changed the Age Pension income test rules for retired public servants, and other retirees (typically retired employees of some large companies) receiving defined benefit superannuation pensions: Taking effect since 1 January 2016, this measure affects 35% of retired public servants, and an unknown number of retirees receiving defined benefit pensions from company super funds. For more information on this change to the Age Pension income test see SuperGuide article Age Pension income test change hits funded defined benefit pension.
How do the Age Pension rules work generally?
The Age Pension assets test (also known as the Centrelink assets test) is a means test that assesses the value of the assets you own against asset thresholds, and determines your eligibility for the Age Pension and other social security payments.
An eligible individual must satisfy the Age Pension income test, and the Age Pension assets test to receive a FULL, or PART, Age Pension. The amount of Age Pension will be based on the test that delivers the lowest amount of Age Pension entitlement. If an individual fails one of the tests, then he or she will not be eligible for the Age Pension. For more information on Age Pension eligibility, see SuperGuide article How do I apply for the Australian Age Pension?
Continue reading this article for more detailed information on the Age Pension assets test changes which took effect on 1 January 2017 (including comprehensive tables).
If you are seeking general information on the Age Pension changes, and also information on the broader Age Pension rules (including latest rates and thresholds), see the following SuperGuide articles:
- Less Age Pension, and paid to fewer Australians since January 2017
- Latest retirement deal! Lose Age Pension, receive Seniors Health Card
- Age Pension: 20 March 2017 now rates apply (until September 2017)
- Age Pension: More Australians entitled to payments from July 2017
- How do I apply for the Australian Age Pension?
- Age Pension: Income test thresholds applicable from July 2017
- Age Pension: Assets test thresholds applicable from July 2017
- Age Pension income test: Deeming rates and deeming thresholds
For those interested in nitty-gritty statistics on the impact of the Age Pension changes…
WARNING: The tables set out below are based on the original announcement from the federal government, that is, that the government estimated the PART Age Pension thresholds to cut out at $547,000 (single homeowner), $823,000 (couple homeowner), $747,000 (single non-homeowner) and $1,023,000 (couple non-homeowner). We have retained the tables in this article more for illustrative purposes and we will update if the federal government decides to updated tables (as at 10 January 2017, no updated tables had been provided).
For guidance on how the stricter tapering rate for the Age Pension assets test affect single or couple Age Pensioners, and Age Pensioners who own their home, and those that do not, see the 4 tables set out below:
- Table 1: Home-owner couples
- Table 2: Single home-owner
- Table 3: Non-home-owner couple
- Table 4: Single non-home owner
Table 1: Age Pension assets test changes: Home-owner couples
The table below:
- compares the amount of Age Pension received by a homeowner couple under the measure to “Rebalance the Assets Test Parameters” with the amount they would receive under the present assets test arrangements;
- shows the percentage of their assets that they would need to draw down to replace the reduction in their pension as a result of the Rebalance the Assets Test Parameters measure; and
- shows the number of pensioners with assessable assets in the ranges that are affected by “Rebalance the Assets Parameter” measure.
| Assessable Assets | Age Pension received at current $1.50 taper rate* | Age Pension under rebalanced asset test measure* | Reduction (increase) in pension income received | % of assets required to replace Age Pension | Assessable asset range | Number of pensioners with assessable assets in specified range |
|---|---|---|---|---|---|---|
| $100,000 | $34,923 | $34,923 | $0 | N/A | $0 – $99,999 | 523,361 |
| $200,000 | $34,923 | $34,923 | $0 | N/A | $100,000 – $199,999 | 291,978 |
| $300,000 | $34,865 | $34,923 | ($59) | N/A | $200,000 – $299,999 | 197,580 |
| $400,000 | $30,965 | $32,973 | ($2,009) | N/A | $300,000 – $399,999 | 116,281 |
| $451,500 | $28,956 | $28,956 | $0 | N/A | $400,000 – $499,999 | 81,637 |
| $500,000 | $27,065 | $25,173 | $1,892 | 0.38% | ||
| $600,000 | $23,165 | $17,373 | $5,792 | 0.97% | $500,000 – $599,999 | 59,992 |
| $700,000 | $19,265 | $9,573 | $9,692 | 1.38% | $600,000 – $699,999 | 46,640 |
| $800,000 | $15,365 | $1,773 | $13,592 | 1.70% | $700,000 – $799,999 | 36,528 |
| $823,000 | $14,467 | $0 | $14,467 | 1.76% | ||
| $900,000 | $11,465 | $0 | $11,465 | 1.27% | $800,000 – $899,999 | 28,358 |
| $1,000,000 | $7,565 | $0 | $7,565 | 0.76% | $900,000 – $999,999 | 21,865 |
| $1,100,000 | $3,665 | $0 | $3,665 | 0.33% | $1,000,000 – $1,099,999 | 13,401 |
| $1,200,000 | $0 | $0 | $0 | N/A | $1,100,000 AND GREATER | 2,830 |
*based on projected pension rates at 1 January 2017. Note that the Age Pension assets threshold will now cut out at $816,000 rather than $836,000 as illustrated in table.
Table source: Commonwealth of Australia
Table 2: Age Pension assets test changes: Single home-owner
The table below:
- compares the amount of Age Pension received by a single homeowner under the measure to “Rebalance the Assets Test Parameters” with the amount they would receive under the present assets test arrangements;
- shows the percentage of their assets that they would need to draw down to replace the reduction in their pension as a result of the Rebalance the Assets Test Parameters measure; and
- shows the number of pensioners with assessable assets in the ranges that are affected by “Rebalance the Assets Parameter” measure.
| Assessable Assets | Age Pension received at current $1.50 taper rate* | Age Pension under rebalanced asset test measure * | Reduction (increase) in pension income received | % of assets required to replace Age Pension a year | Assessable asset range | Number of pensioners with assessable assets in specified range |
|---|---|---|---|---|---|---|
| $100,000 | $23,166 | $23,166 | $0 | N/A | $0 – $99,999 | 457,298 |
| $200,000 | $23,166 | $23,166 | $0 | N/A | $100,000 -$199,999 | 142,763 |
| $250,000 | $21,626 | $23,166 | ($1,540) | N/A | $200,000 – $299,999 | 64,588 |
| $289,500 | $20,085 | $20,085 | $0 | N/A | ||
| $300,000 | $19,676 | $19,266 | $410 | 0.14% | $300,000 – $399,999 | 36,732 |
| $400,000 | $15,776 | $11,466 | $4,310 | 1.08% | $400,000 – $499,999 | 23,517 |
| $500,000 | $11,876 | $3,666 | $8,210 | 1.64% | $500,000 – $599,999 | 15,463 |
| $547,000 | $10,042 | $0 | $10,042 | 1.84% | ||
| $600,000 | $7,976 | $0 | $7,976 | 1.33% | $600,000 – $699,999 | 9,731 |
| $700,000 | $4,076 | $0 | $4,076 | 0.58% | $700,000 – $799,999 | 3,403 |
| $800,000 | $176 | $0 | $176 | N/A | $800,000 – $899,999 | 3 |
*based on projected pension rates at 1 January 2017. Note that the Age Pension assets threshold will now cut out at $542,500 rather than $547,000 as illustrated in table.
Table source: Commonwealth of Australia
Table 3: Age Pension assets test changes: Non-home-owner couple
The table below:
- compares the amount of Age Pension received by a non-home owner couple under the measure to “Rebalance the Assets Test Parameters” with the amount they would receive under the present assets test arrangements;
- shows the percentage of their assets that they would need to draw down to replace the reduction in their pension as a result of the Rebalance the Assets Test Parameters measure; and
- shows the number of pensioners with assessable assets in the ranges that are affected by “Rebalance the Assets Parameter” measure.
| Assessable Assets | Age Pension received at current $1.50 taper rate* | Age Pension under rebalanced asset test measure * | Reduction (increase) in pension income received | % of assets required to replace Age Pension a year | Assessable asset range | Number of pensioners with assessable assets in specified range |
|---|---|---|---|---|---|---|
| $100,000 | $34,923 | $34,923 | $0 | N/A | $0 – $99,999 | 271,935 |
| $200,000 | $34,923 | $34,923 | $0 | N/A | $100,000 – $199,999 | 30,453 |
| $300,000 | $34,923 | $34,923 | $0 | N/A | $200,000 – $299,999 | 13,909 |
| $400,000 | $34,923 | $34,923 | $0 | N/A | $300,000 – $399,999 | 7,378 |
| $500,000 | $33,012 | $34,923 | ($1,911) | N/A | $400,000 – $499,999 | 3,865 |
| $600,000 | $29,112 | $32,973 | ($3,861) | N/A | $500,000 – $599,999 | 2,271 |
| $699,000 | $25,251 | $25,251 | $0 | N/A | $600,000 – $699,999 | 1,307 |
| $700,000 | $25,212 | $25,173 | $39 | 0.01% | ||
| $800,000 | $21,312 | $17,373 | $3,939 | 0.49% | $700,000 – $799,999 | 961 |
| $900,000 | $17,412 | $9,573 | $7,839 | 0.87% | $800,000 – $899,999 | 699 |
| $1,000,000 | $13,512 | $1,773 | $11,739 | 1.17% | $900,000 – $999,999 | 531 |
| $1,023,000 | $12,615 | $0 | $12,615 | 1.23% | $1,000,000 – $1,099,999 | 302 |
| $1,100,000 | $9,612 | $0 | $9,612 | 0.87% | ||
| $1,200,000 | $5,712 | $0 | $5,712 | 0.48% | $1,100,000 – $1,199,999 | 224 |
| $1,300,000 | $0 | $0 | $0 | N/A | $1,200,000 AND GREATER | 102 |
*based on projected pension rates at 1 January 2017. Note that the Age Pension assets threshold will now cut out at $1,016,000 rather than $1,023,000 as illustrated in table.
Table source: Commonwealth of Australia
Table 4: Age Pension assets test changes: Single non-home owner
The table below:
- compares the amount of Age Pension received by a single non-home owner under the measure to “Rebalance the Assets Test Parameters” with the amount they would receive under the present assets test arrangements;
- shows the percentage of their assets that they would need to draw down to replace the reduction in their pension as a result of the Rebalance the Assets Test Parameters measure; and
- shows the number of pensioners with assessable assets in the ranges that are affected by “Rebalance the Assets Parameter” measure.
| Assessable Assets | Age Pension received at current $1.50 taper rate* | Age Pension under rebalanced asset test measure * | Reduction (increase) in pension income received | % of assets required to replace Age Pension a year | Assessable asset range | Number of pensioners with assessable assets in specified range |
|---|---|---|---|---|---|---|
| $100,000 | $23,166 | $23,166 | $0 | N/A | $0 – $99,999 | 900,730 |
| $200,000 | $23,166 | $23,166 | $0 | N/A | $100,000 – $199,999 | 57,964 |
| $300,000 | $23,166 | $23,166 | $0 | N/A | $200,000 – $299,999 | 24,615 |
| $400,000 | $21,723 | $23,166 | ($1,443) | N/A | $300,000 – $399,999 | 12,668 |
| $500,000 | $17,823 | $19,266 | ($1,443) | N/A | $400,000 – $499,999 | 6,383 |
| $537,000 | $16,380 | $16,380 | $0 | N/A | $500,000 – $599,999 | 3,731 |
| $600,000 | $13,923 | $11,466 | $2,457 | 0.41% | ||
| $700,000 | $10,023 | $3,666 | $6,357 | 0.91% | $600,000 – $699,999 | 2,174 |
| $747,000 | $8,190 | $0 | $8,190 | 1.1% | $700,000 – $799,999 | 1,292 |
| $800,000 | $6,123 | $0 | $6,123 | 0.77% | ||
| $900,000 | $2,223 | $0 | $2,223 | 0.25% | $800,000 – $899,999 | 666 |
| $1,000,000 | $0 | $0 | $0 | N/A | $900,000 – $999,999 | 67 |
* based on projected pension rates at 1 January 2017. Note that the Age Pension assets threshold will now cut out at $742,500 rather than $747,000 as illustrated in table.
Table source: Commonwealth of Australia
What a joke. The more you earn throughout life means the more tax you pax. Then big tax payers/hard workers and savers are the ones penalised. I will be doing everything I can to reduce my assets on paper. As I was one of the people who have injected a lot of money in to the tax system much and someone that may have never worked/payed tax will receive more than me…….
I totally agree, I paid plenty of tax for many years and invested when the market was down. I was fortunate, but not knowing when I am going to kick the bucket thought, well this will cover me if I lose my part pension. I was not happy but could see the situation we had been left in by the previous Government. I was quite happy to lose my pension if it was going to help other pensioners (they have not benefited by my loss). However, my husband is on a disability pension and I am treated for diabetes but I do believe we should still be able to receive the assisted benefits side under the State Government which could be reimbursed by the Commonwealth Government. We even pay for our own private health, which must save the Government for any hospital treatment.
Being aware some time ago this could possibly happen I made arrangements for our Grandchildren to have an Internet Business using a “Trust Account”. I am happy how this is going and it allows me to pass on useful information to them on how to make money and saves us spending money on them. In my opinion people who are thinking of downsizing should not as any funds you have in excess will reduce your pension until you use a lot of it up. The tricks of the trade in the Aged Care and Retirement Village situations are ludicrous but not enough room to pass on all the information here but very sticky on accumulated exit fees from day one, capital gains percentages, lease releases also ambiguous entry contacts whether it is freehold, leasehold and other means and the tricks go on and on. Please do your own research this is my opinion only that I have researched. Thank You.
my wife and I both on the pension she works 2 days a week so we don’t get full pension how much can you earn as a couple before you pay any tax we both 67 cheers
Hi Ernie
Thanks for your email. We are not permitted to answer specific tax questions on this site but the following SuperGuide question may point you in the right direction: https://www.superguide.com.au/smsfs/no-tax-retirement-sapto
Cheers
The SuperGuide team
Seniors and age pensioners can join The Seniors United Party of Australia (www.supa.org.au). SUPA is advocating on all age care issues including cuts to the age pension made by The LNP and The Greens. from 1 January 17. Seniors can also sign the following petition:
https://www.change.org/p/jenny-macklin-it-s-time-to-protect-our-pensions-63d76bd8-18c6-4f4f-8020-e8fc18548bc8?recruiter=550430732&utm_source=share_for_starters&utm_medium=copyLink. I understand Jackie Lambie and Pauline Hanson are also against cuts to the age pension by The LNP and The Greens.
I finally reached pension age (65) last year and so became eligible for a part pension. As I’ve only been able to work part-time in recent years it was a relief to have a bit extra coming in. Received a small inheritance recently which along with my superannuation means I’m no longer eligible for even the part-pension. I’ve always been a good saver as I wanted to have a bit to live on in my later years. I’ve hardly worked since January and am paying all my living expenses from my savings – doesn’t seem right to me.
I am one of the many that lost all the pension due to having assets over the $816,000. Today received a letter from my local council telling me that as I no longer hold a pensioner concession card I am now longer entitled to receive a discount on my rates and that they are now requesting me to repay them the proportional discount allowed when I paid my annual rate bill.
Whilst I may have some assets they are not always producing an income. My taxable income last year was less than $11,000 and I have myself and my wife to provide for.
This really is a kick in the guts for those that made the extra effort to substantially try to reduce their burden on the taxpayer whilst in retirement. The removal of the safety net for us is a disgrace.
sell the assets. You will probably live rather well.
We only had the pension to live on now we got absolutely nothing, what do we do for food and rent etc
Yes one of the many who have saved to live a better retirement life. Pension and other recent impacts:
– Have lost $28/ftn under 1st Jan 2017 amenedment.
– Spouse not entitled for pension for another four years and is not working or has any income, yet as a one of a couple, I’m getting $215.90 less than single person rate. I have to provide for two people so there is an anomaly in how this applies.
– My last indexation pension increase was plus 0.5% – every utility service etc cost going up 5+%
– To add salt to the wound, the Vic State Govt has allowed councils to undertake house revaluations every two years instead of 3. Hence get a rate increase more often – my last one was plus 10% – what pensioner gets a 10% pay rise? And yes wrote to council, Minister and MAV and got a …’we’ll get back to you reply from each one . Not one followed through.
– All other utilities are rising well above any increase pensioners – electricity, water, gas etc. If you have solar panels, under the revised tariff scheme effective 1st jan 2017, you lose big time – will cost me an extra $500-650 per year.
The short of it is that anyone who has been frugal will miss out on having a better retirement, and have inadvertently provided for utilities and governments (via GST payments) the opportunity to pick their savings clean.
Would your wife be able to get onto Newstart and maybe volunteer at a local op shop or other similar charity place to help satisfy the relevant Newstart criteria?
This may help your finances. Good luck!
Cheryl, Maria, Jay and all the others who have written (and all those who have not written but intended to) about the recent changes to their pension payments, pleases keep up the anger. Keep this anger going until at least the next election and then vote to show your anger and contempt. Liberals, Labour and the Greens most certainly do not deserve our support and our votes. They are relying on the belief that we will, over time, forget what they have done to us. What politicians like Pauline Hansen, Nick Xenophon and other Independents say is at times irrelevant and not main stream, but maybe we need them in Parliament to provide a balance to the hypocritical and self-serving main Parties.
That is so right! We must not let those asset test/pension changes just be forgotten. Rumour has it that even more restrictions will be put on getting an aged pension in the near future. Even if they had to change the asset test figures, to enable pensions to be sustained for a longer period, I feel that they should have been grandfathered for those already retired. It is not likely that most retired over 65’s would be able to find, and keep, a job to help balance out the amount they have lost in these asset test changes. Maintain the rage!
Why has something not been done about cutting the age pension. Nobody is listening. My husband and myself worked past the retirement age. We only had small savings but had paid a bit extra, not a lot into superannuation. We received only a small part pension for a few months now that has been taken away. I only wish I had left work earlier spent spent spent and did not think I was doing the right thing by saving in super. My advice don’t work past 65 years and enjoy life while you can and spend.
Margaret