Introduction
If you are currently receiving the Age Pension, then there are times when you will need to be reassessed to ensure that you are not being underpaid or overpaid. Both situations should be avoided. Read on to find out when you need to have your Age Pension reassessed, what’s involved and how to go about it.
When do Age Pensioners need to update Centrelink?
Age Pensioners should update Centrelink within 14 days whenever there is a change in any of the following circumstances:
- Name
- Address
- Income (including partner income)
- Assets (including partner assets)
- Marital/partner status (i.e. you marry or start or stop living with a partner).
You should also update Centrelink within 14 days if:
- Your spouse or partner dies
- You leave the country temporarily or permanently
What happens in an Age Pension reassessment?
An Age Pension reassessment is done to make sure that you continue to meet the Age Pension eligibility requirements and that you are receiving your correct Age Pension rate. Your Age Pension rate depends on:
- Your income
- Your assets
- Whether you are single or living with a spouse or partner
- Whether you own your own home or not.
Your fortnightly Age Pension rate could go up or down depending on the result of your reassessment. If your income or assets exceed maximum threshold levels, it will cease altogether.
There are different incomes and asset level thresholds for singles and couples, and for homeowners and non-homeowners. These thresholds affect your Age Pension eligibility and rate of payment if you are eligible. These thresholds are updated in March and September each year.
The table below outlines the maximum asset thresholds from 20 September 2022 to be eligible to receive a full or part Age Pension. The value of your home isn’t included in the assets test.
| Maximum asset limit | |
|---|---|
| Single homeowner | $622,250 |
| Single non-homeowner | $846,750 |
| Homeowner couple (combined) | $935,000 |
| Non-homeowner couple (combined) | $1,159,500 |
| Homeowner couple (combined) but only one partner eligible | $935,000 |
| Non-homeowner couple (combined) but only one partner eligible | $1,159,500 |
| Illness-separated homeowner couple (combined) | $1,103,500 |
| Illness-separated non-homeowner couple (combined) | $1,328,000 |
The income test thresholds to be eligible for a part or full Age Pension from 20 September 2022 for Australian residents are outlined below. Your Age Pension rate reduces by 50 cents for each dollar of fortnightly income that you receive above your threshold amount until it cuts out completely.
| Maximum fortnightly income threshold | |
|---|---|
| Singles | $2,243 |
| Couples (each partner) | $3,431.20 |
| Couples separated by illness | $4,442 |
When does it become necessary to have an Age Pension reassessment?
It’s vital to have an Age Pension reassessment done when your income, asset or living arrangements change significantly. For example, if you suddenly become single or part of a couple. Any delay is likely to result in you being underpaid or overpaid, and the longer that situation drags on, the larger the financial implications.
What are the risks if you don’t keep Centrelink up to date?
If you don’t keep Centrelink up to date with relevant changes to your personal circumstances, then you risk being either underpaid or overpaid. Being underpaid will affect you financially, and the you don’t get reimbursed for being underpaid. That means the longer you stay in an underpaid situation, the worse off financially you will be and there’s nothing you can do to recover the underpayment.
On the other hand, being overpaid will result in you being required to pay the money back plus interest within 28 days or via a repayment plan. In extreme cases, you can even be charged with fraud and face further penalties. Once again, the longer an overpayment situation drags on, the worse off you will be because you will likely find it harder to pay the money back.
How to keep Centrelink up to date
You have a range of options to keep Centrelink up to date with any change to your relevant personal circumstances. You can update your Centrelink account via:
- MyGov
- The Express Plus Centrelink mobile app
- Calling 132 300 Monday to Friday between 8am and 5pm (this is the Centrelink Older Australians line)
- Calling 136 240 (24 hours a day, seven days a week), however, it’s important to understand that this is a self-service line where you select options using your phone keypad – there is no person on the other end.
You should get into the habit of regularly checking your Centrelink information to make sure it’s as up to date as possible. At the every least, do this review once a year. But remember, you must report any significant changes within 14 days to avoid any issues.
Summary
It’s crucial to keep Centrelink up to date with both your financial situation and living arrangements in order to ensure that you remain eligible for the Age Pension and that you are being paid the correct rate. You must update Centrelink with changes to your financial and living arrangements within 14 days of the change. They will assess if there is any change to your Age Pension eligibility or payment rate.
The information in this article is general in nature.