Your Age Pension is based on the information Services Australia holds about your income, assets, relationship and living arrangements. If your circumstances change, your pension may need to be reassessed.
Some changes need to be reported within 14 days. Other changes, such as a fall in the value of certain assets, are worth reporting because they could increase your pension.
This guide explains which changes you need to report, what Services Australia updates automatically and when it may be worth asking for your Age Pension to be reassessed.
Justin Bott, Community Information Officer at Services Australia, spoke to SuperGuide about how these rules work in practice. His comments appear throughout this guide.
What changes do I need to tell Centrelink about?
You generally need to tell Services Australia within 14 days about changes to your circumstances that could affect your Age Pension.
These can include changes to:
- your name or address
- your income, or your partner’s income
- your financial assets, for example if your financial assets rise by $2,000 or more, or the number of shares or other investments you own changes
- your other assets, for example if you buy or sell property, receive an inheritance or give money away
- your relationship status, for example if you start living with a partner or separate
- your living arrangements, for example if you move home, move into a retirement village or enter residential aged care.
You also need to tell Services Australia about other significant changes, including if your partner dies or you plan to travel or move overseas.
Bott says pensioners should not assume Centrelink already has access to all the information it needs.
“One of the myths out there is: I don’t need to tell you anything because you’re the government and you know everything anyway. In the majority of cases, that’s actually not the case. It is up to you to let us know as your circumstances change.”
Justin Bott, Services Australia
Importantly, the requirement to report a change does not necessarily depend on whether you think it will alter your pension.
“Even if you know the change is not going to have an impact on your rate of payment, if it’s one of those changes on the list, you’ve got to let us know.”
Justin Bott, Services Australia
What happens when my Age Pension is reassessed?
A reassessment checks that you still meet the Age Pension eligibility requirements and are receiving the correct Age Pension rate.
Services Australia applies both the Income test and Assets test. The test that results in the lower pension determines how much you receive.
A reassessment can therefore result in your pension increasing, decreasing or, if your income or assets exceed the relevant cut-off, stopping altogether.
Changes to your relationship or living arrangements can also affect your payment because different Age Pension rates and means test limits apply depending on whether you are single or part of a couple and whether you are a homeowner or non-homeowner.
Does Services Australia reassess my pension automatically?
Some changes are applied automatically, but Services Australia does not continually reassess every part of your financial position.
Age Pension rates and means test limits are updated when the relevant rates and thresholds are indexed. Changes to deeming rates are also applied automatically.
Services Australia also automatically revalues some investments.
“On the 20th of March and 20th of September every year, the rate of pension is indexed. But that’s not the only thing that happens. The value of your listed shares and unit-based managed funds is updated on those days too. You don’t need to tell us about changes in the value of your shares, but you do have to tell us if the number of shares has changed.”
Justin Bott, Services Australia
Services Australia also receives updated balances for many superannuation income streams.
“In February and August each year, for the majority of super funds that are paying an income stream, like an account-based pension, we update the balances. If you’ve got a self-managed super fund, we can’t link with those, so you or your accountant will need to update the balances for us.”
Justin Bott, Services Australia
Personal assets such as your car and household contents are different.
“Household contents and personal effects don’t depreciate. If you said your car was worth $30,000 five years ago, it will still be sitting on your record at $30,000.”
Justin Bott, Services Australia
When should I ask for my Age Pension to be reassessed?
You do not need to wait for Services Australia to reassess you. If your circumstances have changed in a way that could increase your pension, it can be worth updating your details.
For example, you may want to update Services Australia if:
- the value of your financial investments has fallen significantly
- you have spent a significant amount of your savings
- you have spent money on major improvements to your principal home
- you have sold or disposed of an assessable asset
- your employment or other assessable income has fallen
- the value of personal assets recorded by Services Australia is now significantly lower
- your relationship or living arrangements have changed.
This can be particularly important if you receive a part pension because of the Assets test. A fall in your assessable assets may increase your pension.
“If your financial assets rise by $2,000 or more, you’re required to tell us. You’re not required to tell us if they’ve dropped in value, but if you’re getting a part pension, a reduction in your assets may well lead to an increase in what we pay you.”
Justin Bott, Services Australia
There is no single annual reassessment that every Age Pension recipient has to complete. In many cases, reassessments happen because you tell Services Australia that something has changed.
Even if nothing obvious has changed, it can be useful to check the income and asset information Services Australia holds about you twice a year, particularly if you receive a part pension. Bott suggests using 1 January and 1 July as reminders.
What if my Age Pension has stopped?
If your Age Pension stops because your income or assets rise above the relevant cut-off, your position may change again later.
For example, if your Age Pension has been suspended because of employment income, it may be possible for your payment to be restored if your income later falls or you stop working, depending on your circumstances and how long your payment has been suspended.
If your payment has been cancelled rather than suspended, you may need to make a new Age Pension claim. Services Australia can tell you whether your payment can be restored or whether a new claim is required.
What happens if I don’t keep Centrelink up to date?
If Services Australia has outdated information, you could receive too little or too much Age Pension.
- Underpaid. If a change could increase your pension and you do not update your details, you may continue receiving a lower rate than you are entitled to. The date an increase can take effect depends on the circumstances and when you notify Services Australia, so reporting promptly gives you the best chance of it applying from the date of the change.
- Overpaid. If a change reduces your entitlement and you do not report it, Services Australia may continue paying you too much. This can result in a debt that you need to repay.
As Bott explains:
“A debt is simply: we paid you money we shouldn’t have, could you please give it back to us. There’s no judgement. Wait until you’ve received notification that you owe money, and how to repay it.”
Justin Bott, Services Australia
How do I update my details?
You can update many of your details with Services Australia:
- online through your Centrelink online account linked to myGov, or using the myGov app
- by calling the Centrelink Older Australians line on 132 300, Monday to Friday, 8am to 5pm
- by calling Centrelink phone self service on 136 240.
It is also important to remember that updating your details with another government service does not necessarily update Centrelink.
“myGov doesn’t hold information itself. If you change your bank account with the Australian Taxation Office, myGov doesn’t pass that on to Centrelink or Medicare. Update one, update them all.”
Justin Bott, Services Australia
If you have a change that needs to be reported, do not wait for a regular check before updating your details.
Summary
Your Age Pension is based on the information Services Australia holds about your income, assets, relationship and living arrangements. Many changes need to be reported within 14 days, and you should not assume Services Australia will receive the information automatically.
Some information, including the value of listed shares and certain managed investments, is updated automatically. But if your circumstances change or the value of your assessable assets falls, updating your details can help make sure you receive the Age Pension rate you are entitled to.
The information in this guide is general in nature.