You are here: Home > Blog > Will Changes To Centrelink Treatment Of Pensions Affect You


Blog


Will Changes To Centrelink Treatment Of Pensions Affect You

Will Changes To Centrelink Treatment Of Pensions Affect You

Currently Centrelink & DVA (Dept. Veterans Affairs) apply very generous treatment of the Pension payments received from Allocated Pensions (also known as Account Based Pensions), but this is all due to change for some people.

allocated pensionsThe Pension payment received from an Allocated Pension is not all counted as income. The Pension payment received is reduced by a “Deductible Amount” which results in little income from the Allocated pension being assessed, & sometimes none of the pension payment is counted as income at all. The benefit of this is helps increase the Centrelink & DVA Age Pension entitlement under the “Income Test” rules & helps reduce the Income Tested Fee (payable by those who entered aged care BEFORE the 1st July changes, & helps reduce the Means Tested Fee for those who entered care AFTER the 1st July.

However, Centrelink & DVA are changing the rules from the 1st January 2015. In some circumstances the Pension payment received from an Allocated Pension will be subject to the “deeming” rules, ie they will be treated the same as money in the bank or shares, consequently you may be worse off.

Who will be affected;

  • Anyone who commences a Centrelink or DVA Pension after 1st January 2015
  • Anyone who commences an Allocated pension after the 1st January 2015
  • Self funded retirees in aged care, will have their Income Tested Fee or their Means Tested Fee increased
  • Anyone who changes their Allocated Pension after 1st January 2015
  • Anyone who has a partner who holds an Allocated Pension, who is not receiving an Age Pension from Centrelink or DVA on 1st January 2015, in which case the deeming of their Allocated Pension may affect the amount of your pension entitlement.

To find out more about how these changes may affect you Balance Aged Care Specialists is holding a series of seminars across Sydney in early November on this issue. Michael Levene (our Financial Adviser) will present the changes, & highlight how you will be affected, & clarify who will & who won’t be affected, & provide strategies to minimise the impact.

To book in call 8814-7307

Locations

Parramatta

Maroubra

Narrabeen

Kareela

Posted: 08-Oct-2014. Author: Eric Hiam

 

 
Copyright © 2014 Balance Aged Care Specialists.
loginPowered by Guybon.com. Affordable web sites that are easy to maintain
Sydney
Central Coast
Newcastle
Canberra