Centrelink financial advice and Age Pension planning.
Centrelink financial advice is worth having because the rules are fiddly and they keep moving. Most households miss out on money they're entitled to — not because they have too much, but because of how it happens to be held. We work within the rules to fix that.
Inside the rules, not around them.
We don't do schemes, and we won't park your money in your nephew's name for a year. We work within the Social Security Act, using the arrangements the law actually allows for, and we write it down so it stands up if Centrelink looks at it.
Done properly, this can add a genuinely useful amount to a household's retirement income. Done badly, it ends in a debt to Centrelink and an argument at Christmas. The difference is writing it down, and doing it in the right order alongside the retirement plan and any move into aged care down the track.
Six things we can change.
Which combination suits you depends on your age, whether you have a partner, what you own, and how far off retirement or aged care is.
The two tests
Centrelink works out your pension two ways — on what you own and on what you earn — then pays whichever gives you less. Most of the work goes into whichever one is holding you back.
Deeming
Centrelink assumes your savings and investments earn a set rate, whatever they actually earn. Moving money between things that are treated this way and things that aren't changes the result.
Giving money away
Give away more than the allowed amount and Centrelink still counts it as yours for five years. Helpful in some plans, costly in others. Timing is everything.
Pensions from super
There are particular rules for how your super pension and its balance get counted. How much sits inside super versus outside it changes both tests.
Things that don't count
A few things, funeral bonds among them, sit outside the assets test up to a limit. Narrow in use, but worth knowing if you're sitting just over a threshold.
Couples, and the house
Whether you're single or partnered, and whether you own your home, all move the cut-offs. So does what happens to the house if someone goes into care.
Usually it’s what you own that holds you back.
For most people with some super and an investment or two, it's the assets test that decides the pension, not the income test. That changes what you do about it. Every extra $1,000 counted above the cut-off knocks a set amount off the fortnightly payment, so getting on the right side of that line is where the work goes.
For wealthier households it flips, and the income test takes over. Then the assumed earning rate becomes the thing to work on, which is why it matters what sort of assets you hold. There's a longer read on juggling super, the pension and aged care together in the retirement planning guide.
- What you own now
- What Centrelink assumes you earn
- How close you are to a cut-off
- When your super pension starts
- Anything you have given away
- What you want to leave behind
Questions we get a lot.
The maximum is set by Services Australia and updated each March and September. What you get depends on what you own, what you earn, whether you have a partner, and whether you own your home. Plenty of people who look comfortable on paper are still entitled to a part pension once things are held the right way.
Sometimes, but nowhere near as often as people hope. Anything above the allowed amount is still counted as yours for five years. It has to be planned well ahead — and frankly, the relationship with your kids matters more than the pension does.
It can. Chasing the biggest possible pension sometimes means moving money out of your estate, or into things you can't easily get at. We put both outcomes side by side in writing so you can decide which you'd rather have.
We manage the application and any reassessment so what Centrelink has on file matches the plan. You (or whoever holds your power of attorney) actually lodge the forms. Our job is making sure nothing on them contradicts what we've advised.
Keep reading
- Financial planning overviewThe main page — what a plan covers and how it's written.
- Retirement planningWhere the pension fits into your retirement income.
- Aged care planningWhat care costs, and the Centrelink review it triggers.
- Superannuation adviceSuper pensions, and how Centrelink counts them.
- Tax-effective investingHow the way you own things affects the 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.
Find out what you’re entitled to.
The first conversation is free and you're not committing to anything. Bring your latest Centrelink statement and your super pension details.