Your Money Q&A
Q AS I approach age pension age, I am trying to my reduce cash assets. If I make a considerable superannuation contribution to my wife’s super above the allowable gifting limits, would this be viewed as a gift and deemed accordingly?
A THE gifting rules do not apply to assets transferred from one member of a couple to another. But keep in mind that the only contribution that can be made for a partner is a non-concessional one, which some people make to a low-income partner to get a rebate of up to $540 for a contribution of $3000. Therefore, you will have to pay the money to your partner who can make the contribution herself.
Q MY WIFE and I have separated, primarily for reasons associated with my advanced Parkinson’s disease. We remain married and she is dependent upon me. She has found work and her earnings impact my disability pension. If I change my status with Centrelink to separated for personal reasons, can we maintain our married status and thus her entitlement to a residual pension if I die? Will Centrelink accept we have separated if we maintain a joint bank account and she remains partially dependent on me?
A THERE is not enough information to give a specific answer but this is the background. A recipient is considered to be a member of a couple relationship if they are: married, in a registered relationship (different-sex or same-sex); or in a de facto relationship (different-sex or same-sex); and not living separately on a permanent or indefinite basis.
Where an income support recipient is assessed as being a member of a couple, their eligibility for payment is assessed at the partnered rate, and takes into account their partner’s income and assets. A recipient may be assessed as separated under one roof if their relationship has broken down and the parties are assessed as living separately on a permanent or indefinite basis but are still residing under the same roof.
In assessing whether a recipient is a member of a couple, the department takes into account the individual circumstances of each case, including the financial aspects of the relationship, the nature of the household, the social aspects of the relationship, the nature of the parties’ commitment to each other, and any sexual relationship.
There may be extra assistance available for recipients who need to leave their home to enter a care situation due to illness. However, the couple’s combined income and assets will still be assessed as if they were a regular member of a couple.
Your best action is to talk to Centrelink and be guided by them. They are usually great to deal with.
- 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.
