Centrelink financial advice and Age Pension planning.
Centrelink financial advice matters because the rules are detailed and they change. Most households leave entitlements on the table because of how their assets are held, not because they earn too much. We work the structure inside the rules.
Compliant Centrelink strategies.
We do not do schemes. We do not move assets to a relative's name for a year. We work inside the Social Security Act, with the structures the legislation contemplates, and we write the strategy down so it can be defended at review.
Done properly, Centrelink optimisation can lift a household's after-tax retirement income materially. Done badly, it creates debts to Centrelink and arguments inside the family. The difference is in the documentation, and in the sequencing against the retirement income plan and any future aged care move.
The six levers we work.
The right combination depends on the household's age, marital status, asset mix, and timeline to retirement or to aged care.
The two tests
The Age Pension is calculated under both an assets test and an income test. The lower entitlement of the two applies. Most strategy work targets whichever test is currently binding.
Deeming
Centrelink deems financial assets to earn a set rate, regardless of actual income. Restructuring assets between deemed and non-deemed categories can change the income-test outcome.
Gifting rules
Gifts above the allowable thresholds remain on the assessment for five years. Useful in some plans, damaging in others. The timing matters.
Account-based pensions
Pension drawdowns and balances are assessed under specific rules. The mix between super and outside-super investment changes both tests.
Funeral bonds and exempt assets
Some asset classes sit outside the asset test up to a limit. The use is narrow but worth knowing for households on the edge of an entitlement threshold.
Couples and the home
Single, partnered, and homeowner status all change the thresholds. So does the family home arrangement on entry to aged care.
The asset test is usually the binding one.
For most households with super and one or two investment assets, the asset test decides the entitlement, not the income test. That changes the strategy. We focus on the right side of the asset threshold, because each $1,000 of assessable assets above the threshold reduces the fortnightly pension by a set amount.
For wealthier households the income test takes over. The deeming rate then becomes the lever, which is why the mix between deemed financial assets and other holdings matters. The longer-form context for retirees managing super, age pension and aged care together sits in the retirement planning guide.
- Current asset position
- Deemed income result
- Threshold proximity
- Pension phase timing
- Gifting history
- Estate priorities
Frequently asked questions.
The maximum rate is set by Services Australia and is published each March and September. Your entitlement depends on assets, income, marital status, and homeowner status. Some households on apparently comfortable balance sheets are still entitled to a part pension with the right structure.
Sometimes, but not as often as people think. Gifts above the allowable amount are still counted as your asset for five years. The strategy needs to be planned well in advance, and the family relationship is more important than the entitlement.
It can. Restructuring to maximise the Age Pension sometimes shifts wealth out of the estate or into less flexible assets. We weigh both outcomes and write down the trade-off so the household can decide.
We coordinate the application and any reassessment so the strategy is reflected in the record. The forms themselves are submitted by the client or their authorised representative. We make sure nothing on the form contradicts the plan.
Continue reading
- Financial planning overviewThe pillar page. How a Statement of Advice is delivered.
- Retirement planningWhere Centrelink fits in a retirement income strategy.
- Aged care planningRAD, DAP, and Centrelink reassessment at entry to care.
- Superannuation adviceAccount-based pensions and deeming.
- Tax-effective investingWhere structures interact with the Centrelink tests.
Information on this page is general in nature. It does not take into account your personal objectives, financial situation, or needs. Read the relevant Product Disclosure Statement and consider whether personal advice is appropriate before acting on any information here.
Book a Centrelink position review.
An initial conversation is free and obligation-free. Bring the latest Centrelink statement and your super pension details.