Sheena Stow-Smith from PensionHelp answers reader questions about super pensions and the Commonwealth Seniors Health Card. Q: I commenced my compulsory pension drawdown in my SMSF in 2012. I couldn’t apply for a Commonwealth Seniors health Card at that date as I hadn’t reached the official retirement age at that time. My birth date is […]
Age Pension News
Age Pension and assessing superannuation income
The means test that most affects Age Pensioners is the Income Test. Full pensioners make up 67% of Age pensioners, followed by 18% of Age Pensioners assessed under the Income Test. Careful consideration should be given when making changes with account-based pensions commenced pre- 1 January 2015. Provided the pension member has been in continuous […]
How the Disability Support Pension works for Age Pensioners
We often get asked what are the differences between the Age Pension and the Disability Support Pension for those who have reached Age Pension age. Centrelink will invite those on the Disabilty Support Pension to transfer to the Age Pension up to 13 weeks before they reach Age Pension age. You will need to tell […]
Here’s a radical reform that could keep super and pay every retiree the full pension
By Kevin Davis, Professor of Finance, University of Melbourne The government’s retirement income review is being told our current tax and benefit treatment of retirement incomes is a mess. Much of financial planning industry is devoted to structuring affairs to maximise access to the age pension. The means test and other requirements that control access […]
Postcode by postcode: A clever way to include homes in the age pension assets test
Anthony Asher, UNSW Here’s the boldest idea the government’s inquiry into retirement incomes should consider but might not: no longer exempting all of the value of each retiree’s home from the pension assets test. The test would merely exempt part of the value of retirees’ homes. The change would free-up funds to support other retirees […]
They’ve cut deeming rates, but what are they?
Peter Martin, Crawford School of Public Policy, Australian National University Treasurer Josh Frydenberg has cut the deeming rate for large investments from 3.25% to 3%, and for smaller ones from 1.75% all the way down to 1%, backdated to the start of July. But what exactly is a deeming rate, and why does it matter […]