Your money with Noel Whittaker
Q I am 67 and receive a Commonwealth Public Service pension of $40,000 a year and have $600,000 in super in pension phase and draw down the minimum about $30,000 a year. My wife is 59 and does not work. I receive a Centrelink pension of about $349 per fortnight that is income tested (not asset tested). Will I be affected by the January 1 rules, and if so, can I draw some of my lump sum super and put it in my wife’s super account (current balance about $50,000). I note in your column you said pension rules for income tested people will not be affected but I have heard conflicting information about this.
A A COUPLE is assessed together but money held in superannuation for a person who has not reached pensionable age is not counted by Centrelink. If you are income tested, the assets test change should not affect you, but I suggest you go to my website www.noelwhittaker.com.au and have a play with the calculators there. Go first to the deeming calculator and then use that information for the age pension calculator.
Q Could you please clarify the gifting and the five-year period. If I apply for the pension now (for the 2016-17 financial year) is it included in the five-year period?
A Centrelink will count all monies given away within five years of the application.
Q Is the January 1, 2017, taper rate of $3 per $1000 over the assets test lower limit of $375,000 for home owning couples applied to each member of the couple (hence a $6 reduction of their pension income) or is it a $1.50 deduction from the pension of each?
A The taper rate is $3 for each $100,000 for a couple – it is not doubled for them. The reduction is $7800 a year for each $100,000. Keep in mind that chattels such as furniture and cars should be valued at garage sale prices.
- Do you have a question? Send to Q&A, PO Box 130, Wyong NSW 2259 or email edit@thesenior.com.au A selection of questions will be covered in this column. Personal replies will not be given.
