Centrelink

Market Linked Pension - Centrelink Treatment

Assets in a complying pension are not considered to be assets by Centrelink if taken out before 20/9/04 and half of the asset values if taken out after 20/09/04. There is no access to your capital once the pension has commenced. However, from 20/9/07 all new pnsions taken out have all assets counted by Centrelink.

Types of Complying Pensions

• Lifetime Pensions
• Flexi Pensions
• Term/Life Expectancy pensions
  (There are some restrictions as these are commenced on or after Aged Pension Age)
• Growth or Market Linked Pensions from 20/09/04

Allocated Pensions

These are considered to be assets by Centrelink, however, for Centrelink and Income Tax purposes only the excess over the purchase cost of the pension spread over your life expectancy is considered to be income. Centrelink and the Australian Tax Office can have different treatment of the income calculations.

Aged Pension From Centrelink

A combination of allocated and market linked pensions may increase your Aged Pension with assets of up to about $818,000.00 Those couples with assets over $818,000.00 may still be able to access a Centrelink pension, depending upon their individual circumstances, e.g. by purchasing a more expensive residence.

Benefits

• Centrelink Aged Pension benefit possibly may be able to be obtained. Even a part age pension can give valuable other benefits.
• Control of your investments and making your decisions for your investments.
• No tax is payable on taxable income or capital gains received by your pension fund.

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