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Reproduced from Centrelink's "A Guide to Australian
Government Payments 1 July - 19 September 2010"
Basic Conditions of Eligibility
Residential Requirements for Pensions
Basic Rates
Pension Reform Transition Arrangements
Rent Assistance
Assets Test for Pensions
Income Test for Pensions
Deeming - Financial Investments
Centrelink & DVA Means Testing of Income
Streams
Basic Conditions of Eligibility
- Men born before 1 July 1952 are eligible at age 65.
- Women born before December 1945 have reached pension age.
For women born between 1 January 1946 and July 1952, see table
below.
| Women born |
Eligible for Age
Pension at age |
| 1 January 1946 to 30 June 1947 |
64 |
| 1 July 1947 and 31 December 1948 |
64½ |
| 1 January 1949 and later |
65 |
- For both men and women born on or after 1 July 1952, see table
below.
| People born between |
Eligible for Age
Pension at age |
| 1 July 1952 and 31 December 1953 |
65½ |
| 1 January 1954 and 30 June 1955 |
66 |
| 1 July 1955 and 31 December 1956 |
66½ |
| 1 January 1957 and later |
67 |
Residence Requirements
- Must be an Australian resident and in Australia on the day
the claim is lodged, unless claiming under an International
Social Security Agreement.
- Must have been an Australian resident for a total of at least
10 years, at least five of these years in one continuous period,
or
- Residence in certain countries with which Australia has an
International Social Security Agreement may count towards Australian
residence, or
- Have a qualifying residence exemption (arrived as a refugee
or under special program), or
- A woman who is widowed in Australia, when both she and her
late partner were Australian residents and who has 104 weeks
residence immediately prior to claim, or
- Person was in receipt of Widow B Pension, Widow Allowance,
Mature Age Allowance or Partner Allowance immediately before
turning age pension age.
- Can generally be paid for the total period of absence from
Australia (some exemptions may apply), however, after 26 weeks
the rate may change.
Note: Special rules in the case of travel to
New Zealand, or if covered by an International Social Security
Agreement.
Basic Rates
| Status |
Pension Rate Per Fortnight |
| Single |
$644.20* |
| Couple (each) |
$485.60* each |
* These amounts exclude the Pension Supplement which pensioners
may receive as an additional payment to the base pension (see Concession
Cards, Supplements and Allowances).
- Paid fortnightly to a bank, credit union or building society
account.
- If a couple is separated by illness, they may each be able
to be paid at the single pesnion rate. The combined income and
assets of the couple are used to work out their rates.
- The single rate may be payable to one member of a couple if
partner not receiving payment is imprisoned or in a psychiatric
hospital.
- Partnered rate payable to one member of a couple if partner
is not receiving a pension, benefit or allowance.
- Not eligible for Education Entry Payment, or Pension Education
Supplement.
Pension Reform Transitional
Arrangements
Pensioners receiving payments at 19 September 2009 will not receive
payment reduction because of the changes made to the pension systemfrom
20 September 2009 (including changes to the income test taper
rate, the Work Bonus and removal of higher income test free area
for pensioners with dependent children). These pensioners will
be assessed under both the old rules and the new rules. Some pensioners
will be paid a transitional rate until the new rules provide an
equal or better outcome for them. The transitional rate is based
on the income test rules and payment rates (indexed to CPI) that
applied before 20 September 2009. Contact Centrelink for more
information.
Rent Assistance
| Family Situation |
Maximum payment per fortnight |
No payment if your fortnightly rent is less than |
Maximum payment if your fortnightly rent is more than |
| Single, no children |
$113.40 |
$100.80 |
$252.00 |
| Single, no children, sharer |
$75.60 |
$100.80 |
$201.60 |
| Couple, no children |
$107.00 |
$164.40 |
$307.07 |
| One of a couple who are separated due to illness, no children* |
$113.40 |
$100.80 |
$252.00 |
| One of a couple who are temporarily separated, no children |
$107.00 |
$100.80 |
$243.47 |
* Includes respite care and partner in prison.
- Rent Assistance for families with children is usually paid with Family Tax
Benefit. See Family
Tax Benefit Part A for current rates.
- Rent Assistance is not paid:
- to people paying rent to a government housing authority, although
in some situations sub-tenants may qualify for Rent Assistance.
- for residents of Australian Government funded nursing homes and hostels.
- to single Disability Support Pensioners under 21, without dependants,
living with parents.
- to other single people aged under 25, living with parents.
- Special rules apply to single sharers, people who pay board and lodging
or live in a retirement village.
- Rent Certificates are required to verify rent where the person does not
have a formal tenancy agreement or is not named as a tenant on a formal tenancy
agreement.
- Rent Assistance is paid as part of another payment. It may be reduced due
to the income test rules applying to that primary payment.
- Rent Assistance is subject to portability provisions where relevant.
Income Test for Pensions
(a) Income Test for Pensions
| Family Situation |
Full Pension (pf)* |
For Part Pension (pf) # † |
| Single** |
Up to $146.00 |
Less than $1,548.20 |
| Couple (combined) |
Up to $256.00 |
Less than $2,370.00 |
| Illness separated couple (combined) |
Up to $256.00 |
Less than $3,060.40 |
(b) Income Test for Pensioners - Transitional Rules
The notional maximum pension for transitional rate pensioners is $624.90 per
fortnight for a single pensioner and $1,009.40 per fortnight for pensioner couples.
This rate excludes rent assistance.
Income test for transitional rate pensioners:
| Family Situation |
Full Pension (pf)ˆ |
For Part Pension (pf) # † |
| Single** |
Up to $146.00 |
Less than $1,731.75* |
| Couple (combined) |
Up to $256.00 |
Less than $2,817.50* |
| Illness separated couple (combined) |
Up to $256.00 |
Less than $3,427.50* |
|
Note: The rate of payment is calculated under both the income
and assets tests. The test that results in the lower rate (or nil rate)
will apply.
|
| ˆ |
Allowable income is increased by up to $24.60 pf for each dependant child. |
| * |
Income over these amounts reduces the rate of pension payable
by 50 cents in the dollar (single), 25 cents in the dollar each (for couples).
For transitional or saved cases income over these amounts reduces the rate
of pension payable by 40 cents in the dollar (single), 20 cents in the dollar
each (for couples). |
| # |
These figures may be higher if Rent Assistance is paid with your pension. |
Some assets are deemed to earn income, while there are special rules
for other types of income. Contact Centrelink for more information.
Employment income is subject to a Work Bonus for eligible pensioners over pension age.
Pensioners receiving payments at 19 September 2009 may be paid under 'transitional arrangements'.
Work Bonus
Basic conditions of eligibility:
- The Work Bonus is a concession on the income test treatment of employment
income for pensioners over age pension age, except Parenting Payment (Single).
- The Work Bonus is used to reduce assessable employment income in an instalment
period. An instalment period is a period of a maximum of 14 days.
- Half of the first $500 of fortnightly employment income will be disregarded
from the income test for pensioners over age pension age. This is in addition
to the normal allowable income threshold.
- All pensioners over age pension age, other than recipients of Parenting
Payment (Single), are eligible for the Work Bonus. If they are eligible for
a transitional rate, Centrelink will compare the transitional rate (which
has no Work Bonus) to the new rate (which does include the Work Bonus). The
transitional rate is paid where it pays a higher rate.
- No registration process, however pensioners must keep Centrelink up to date
with their employment income.
Compensation Payment
Compensation payments, such as weekly workers' compensation payments, are assessed
differently. If the compensable injury occurred prior to receiving an income
support payment each dollar of any regular compensation payment reduces the
income support payment (pension or allowance) by a dollar. If the compensable
injury occurred while receiving an income support payment any regular compensation
payment is assessed under the normal income test. Compensation payments may
include a component of taxable income and it is this component that is included
as income for Family Tax Benefit purposes. Lump sum compensation payments may
result in a non-payment period. Contact Centrelink for more information.
- No income test on basic rate for age pensioners who are permanently
blind; however, these pensioners may be affected by the special
arrangements for compensation payments (see above).
Assets Test for Pensions
Assets Test for Homeowners
| Family Situation |
For Full Pension
/ Allowance* |
For Part Pension # † |
| Single** |
Up to $181,750 |
Less than $649,250 |
| Partnered (combined) |
Up to $258,000 |
Less than $963,000 |
| Illness separated couple (combined) |
Up to $258,000 |
Less than $1,193,000 |
| One partner eligible |
Up to $258,000 |
Less than $963,000 |
Transitional Homeowner
| Family Situation |
For Full Pension
/ Allowance* |
For Part Pension # † |
| Single |
Up to $181,750 |
Less than $604,750 |
| Partnered (combined) |
Up to $258,000 |
Less than $941,500 |
| Illness separated couple (combined) |
Up to $258,000 |
Less than $1,104,000 |
| One partner eligible |
Up to $258,000 |
Less than $941,500 |
Assets Test for Disability Support Pensioners Under 21 - Homeowners
| Family Situation |
For Full Pension
/ Allowance* |
For Part Pension # † |
| Aged Under 21 Single - not independent |
|
| 16 - 17 years |
Up to $181,750 |
Less than $394,500 |
| Partnered (combined) |
Up to $181,750 |
Less than $422,500 |
| Aged Under 21 Single - independent |
|
| |
Up to $181,750 |
Less than $508,250 |
| Aged Under 21 - Couple (combined) |
|
| One partner eligible |
Up to $258,000 |
Less than $907,000 |
Assets Test for Non-Homeowners
| Family Situation |
For Full Pension
/ Allowance* |
For Part Pension # † |
| Single** |
Up to $313,250 |
Less than $755,000 |
| Partnered (combined) |
Up to $389,500 |
Less than $1,094,500 |
| Illness separated couple (combined) |
Up to $389,500 |
Less than $1,324,500 |
| One partner eligible |
Up to $389,500 |
Less than $1,094,500 |
Transitional Non-Homeowner
| Family Situation |
For Full Pension
/ Allowance* |
For Part Pension # † |
| Single |
Up to $313,250 |
Less than $726,250 |
| Partnered (combined) |
Up to $389,500 |
Less than $1,073,000 |
| Illness separated couple (combined) |
Up to $389,500 |
Less than $1,235,500 |
| One partner eligible |
Up to $389,500 |
Less than $1,073,000 |
Assets Test for Disability Support Pensioners Under 21 - Non-Homeowners
| Family Situation |
For Full Pension
/ Allowance* |
For Part Pension # † |
| Aged Under 21 Single - not independent |
|
| 16 - 17 years |
Up to $313,250 |
Less than $526,000 |
| Partnered (combined) |
Up to $313,250 |
Less than $554,000 |
| Aged Under 21 Single - independent |
|
| Illness separated couple (combined) |
Up to $313,250 |
Less than $639,750 |
| Aged Under 21 - Couple (combined) |
|
| One partner eligible |
Up to $389,500 |
Less than $1,038,500 |
Some assets are deemed to earn income, while certain assets
are not included in the assets test; see Deeming
- Financial Investments or contact Centrelink for more information.
Note: The rate of payment is calculated under both the income and
assets tests. The test that results in the lower rate (or nil rate) will apply.
| # |
Limits will increase if Rent Assistance is paid with your
pension. |
| * |
Assets over these amounts reduce pension by $1.50 per fortnight for every
$1,000 above the limit (single and couple combined).
Newstart Allowance, Widow Allowance, Partner Allowance, Sickness Allowance,
Special Benefit, Parenting Payment, Youth Allowance and Austudy Payment
and Mature Age Allowance are not payable if assets exceed these amounts.
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| ** |
For Disability Support Pension recipients, these limits apply if aged
over 21 only. For those under 21 the same income/assets test applies, but
with different limits. See your nearest Centrelink Customer Service centre
for more information. |
| Asset and Income limits for Transitional Rate and saved case customers
apply to customers who are resident in Australia, or are not absent for
more than 13 weeks only. For other cases, contact Centrelink for more
information. |
Extra Allowable amount for Retirement Village and Granny Flat Residents
If your Entry Contribution is equal to or less than the Extra Allowable Amount,
you are assessed as a non-homeowner. Your Entry Contribution will count as an
asset. You may qualify for Rent Assistance. The Extra Allowable Amount is the
difference between the non-homeowner and homeowner test limits, currently $131,500.
Hardship Provisions
If you have assets but little or no income you are expected to rearrange your
affairs to provide for yourself. In some cases that is not possible. If you
are in "severe financial hardship" you may be able to get a social
security payment. Different tests apply to such cases.
- Hardship provisions may apply.
- No assets test on basic rate for age pensioners who are permanently
blind; however, these pensioners may be affected by the special
arrangements for compensation payments (see above).
Deeming - Financial Investments
Deeming is a set of social security rules used to assess income from financial
assets. Under these rules it is assumed that financial investments are earning
a certain amount of income, regardless of the income they actually earn.
Financial investments are:
- Bank, building society and credit union accounts.
- Term deposits and debentures.
- Friendly society bonds.
- Managed investments.
- Listed shares and securities.
- Shares in unlisted public companies.
- Gold and other bullion.
- Certain income streams, e.g. short-term assets tested income streams.
- Approved deposit funds, deferred annuities and superannuation fund investments
held by people over age pension age.
- Loans, including those to family trusts and companies.
- Gifts of money or other assets of more than $10,000 in a financial year,
or more than $30,000 over five financial years.
Deeming rates are:
| Single |
<$43,200 |
3% |
|
>$43,200 |
4.5% |
| Couple, at least one receiving a pension |
<$72,000 |
3% |
|
>$72,000 |
4.5% |
| Couple, neither receiving a pension |
<$36,000 |
3% |
|
>$36,000 |
4.5% |
Centrelink & DVA
Means Testing of Income Streams
| Classification |
Income Test |
Deductible Amount |
Assets Test |
Complying
eg. Life or Life expectancy/fixed term pensions or annuities. |
Gross Income less Deductible amount |
Purchase Price Relevant Number (term) |
Exempt |
| Non-complying (>5 yrs) e.g. allocated pensions, allocated annuities or term certain annuities. |
Gross Income less Deductible amount |
Purchase Price Relevant Number (term) |
Account balance or if none: PP less [(PP - RCV) / RN x term elapsed] |
| Non-complying (5 yrs or less) e.g. term certain annuities. |
Deem Income |
Not Applicable |
Account balance or
if none:
PP less [(PP - RCV) / RN x term elapsed] |
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Forsyte Consulting Pty Ltd unless otherwise stated.
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