A number of social security changes have been passed in parliament recently which may effect your current or future financial position.
The changes to this are have been highlighted in detail on our website.
New pension changes have now taken effect as of 1 January this year. If you currently receive the age pension and own more than $816,000 in assets (including super and all other assets but excluding your home), then you will now no longer be eligible to receive the age pension.
For those homeowner couples with less than $816,000 in assets, but more than $375,000, you should be warned that the proposed changes to Centrelink Age Pension entitlements will affect you. You can find more details on the specifics on how this will affect you in our detailed article here.
Assets Test Free Area for Full Pension
Your pensions will start reducing when your assets are more than the following amounts:
Family situation Homeowners Non-homeowners 1 July 2016 1 January 2017 1 July 2016 1 January 2017 Single $209,000 $250,000 $360,500 $450,000 Couple combined $296,500 $375,000 $448,000 $575,000 Illness separated couple combined $296,500 $375,000 $448,000 $575,000 One partner eligible, combined assets $296,500 $375,000 $448,000 $575,000
Assets Test Limits for Part Pensions
You pensions cancel and your will no longer be eligible for any age pension when your assets are more than the following amounts:
Family situation Homeowners Non-homeowners 20 September 2016 1 January 2017 20 September 2016 1 January 2017 Single $793,750 $542,500 $945,250 $742,500 Couple combined $1,178,500 $816,000 $1,330,000 $1,016,000 Illness separated couple combined $1,466,000 $960,000 $1,617,500 $1,160,000 One partner eligible, combined assets $1,178,500 $816,000 $1,330,000 $1,016,000
How will assets over the limit threshold affect your payment?
Assets Test Free Area for Full Pension
Your pensions will start reducing when your assets are more than the following amounts:
| Family situation | Homeowners | Non-homeowners | ||
| 1 July 2016 | 1 January 2017 | 1 July 2016 | 1 January 2017 | |
| Single | $209,000 | $250,000 | $360,500 | $450,000 |
| Couple combined | $296,500 | $375,000 | $448,000 | $575,000 |
| Illness separated couple combined | $296,500 | $375,000 | $448,000 | $575,000 |
| One partner eligible, combined assets | $296,500 | $375,000 | $448,000 | $575,000 |
Assets Test Limits for Part Pensions
You pensions cancel and your will no longer be eligible for any age pension when your assets are more than the following amounts:
| Family situation | Homeowners | Non-homeowners | ||
| 20 September 2016 | 1 January 2017 | 20 September 2016 | 1 January 2017 | |
| Single | $793,750 | $542,500 | $945,250 | $742,500 |
| Couple combined | $1,178,500 | $816,000 | $1,330,000 | $1,016,000 |
| Illness separated couple combined | $1,466,000 | $960,000 | $1,617,500 | $1,160,000 |
| One partner eligible, combined assets | $1,178,500 | $816,000 | $1,330,000 | $1,016,000 |
From 1 January 2017, your pension will reduce by $3 per fortnight for every $1,000 of assets you own over the asset free area.
The above shows the amount by which your age pension entitlement will reduce for every $1,000 over the minimum limit (for a homeowner, couple combined $375,000). This means the amount of assets a pensioner can have on top of their family home and still receive a part pension will be reduced.
Commonwealth Seniors Health Card
Pensioners who lose their Age Pension entitlements on 1 January 2017 as a result of the changes to the Centrelink Age Pension assets test will be automatically issued with a Commonwealth Seniors Health Card. They will be exempt from the usual income test requirements for these cards indefinitely.
The Commonwealth Seniors Health Card gives older Australians access to cheaper prescription medicines, Australian government funded medical services, and other government concessions.
What Can You Do To Retain Your Pension?
Not everything you own is actually counted towards your assets for the purposes of the test. For example, your principal residence (family home) is not included in your total assets. There are a number of assets which are exempt from the assets test.
To review your pension account and any changes which may be applicable to your situation call us now to discuss your available options. Total Advice Partners are available to assist with all your enquiries. Please feel free to contact us at any time to discuss your situation and financial needs.
(P) (07) 3284 7875 | (F) (07) 3284 4790
