What is Age Pension Income Test?
Income Test is not just as simple as checking your pay slip, or the level of income you earn from your investments, because every type of earned income is included in the test and each might be calculated differently.
Income Test includes:
• your employment income if you continue working full-time or part-time,
• any money your earn from your business
• Income received from overseas pension funds
• Income earned from your rental property or your investment properties,
• Income received from your retirement income streams
• plus all assessable assets, so all your financial assets such as your bank accounts, managed funds, shares, superannuation, business assets.
and each might be under different income assessment rule. Sometimes you might feel like you would have to be Einstein to understatement and follow those rules.
How much income can I earn before it affects my Age Pension Payments?
How does Age Pension reduce under Income Test?
What is the maximum I can earn under Income Test?
What income is exempt from Income Test?
My partner is not of Age Pension age, so not eligible for Age Pension payments. Is the income of my partner included in income Test?
Is my super fund assessed under Income Test if I don’t draw any income from it?
Is my partner’s super included in Income Test?
Videos mentioned:
Age Pension explained:
The truth about Asset Test:
9 ways to legally hide money from Centrelink Age Pension:
Age Pension Deeming Rules – Unfair Rules:
To download the book 12 PRINCIPLES OF INVESTING:
Contact details:
Katherine Isbrandt of About Retirement
Website:
Email: katherine@aboutretirement.com.au
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Age Pension Income Test MADNESS #AgePensionIncomeTest
The Age Pension is a crucial form of financial support provided by the Australian government to senior citizens who have retired from work. It is a safety net that ensures the elderly can live a dignified life during their twilight years. However, recent revelations about the Age Pension Income Test have caused widespread outrage and confusion among pensioners and the general public alike.
The Income Test determines the amount of Age Pension a retiree is eligible to receive. Under this test, the government assesses an individual’s income to determine their pension entitlements. The test allows pensioners to earn a certain amount of income per fortnight without affecting their pension payment. However, for every dollar earned above the income threshold, the pension payment reduces by 50 cents.
While on the surface, this may seem like a fair way to ensure that those who need the pension the most receive the appropriate support, the implementation of the Income Test has been nothing short of madness. The complexities and discrepancies in this system have left many retirees bewildered and frustrated.
One of the major concerns with the Age Pension Income Test is the way it treats different types of income. Retirees who rely on investment income face a distinct disadvantage compared to those who earn income through employment or superannuation. This discrepancy creates an unfair playing field where retirees with identical financial circumstances can receive significantly different pension amounts due to the type of income they have.
Another issue with the Income Test is the way it penalizes those who try to save for their future. A retiree who diligently saved throughout their working life to support themselves in retirement is punished by having their pension reduced or even eliminated entirely. This discourages responsible financial behavior and creates a disincentive for provision in old age.
Furthermore, the complexity of the Income Test is a significant barrier for many retirees. The intricacies involved in calculating income and the cumbersome paperwork required to report changes in financial circumstances create a burdensome and time-consuming process. Many pensioners are left grappling with confusing rules and regulations, seeking professional help, and even facing financial penalties for unintentional errors.
The Age Pension Income Test needs urgent reform to address these glaring issues. The Australian government should prioritize simplifying the income assessment process, ensuring fairness across different types of incomes, and rewarding responsible saving for retirement. It should be a system that supports retirees in a transparent and straightforward manner, providing them with the stability and security they deserve.
The outcry surrounding the Age Pension Income Test has sparked a social media campaign under the hashtag #AgePensionIncomeTest. Retirees and advocacy groups are using this platform to amplify their concerns, share personal stories, and demand action from the government. It is high time that policymakers listen to the voices of those who are directly affected by these unfair and complex regulations.
The Age Pension is an essential lifeline for countless elderly Australians. However, the Income Test madness that currently plagues the system undermines its purpose and leaves retirees in a state of confusion and frustration. It is imperative that the government takes immediate steps to rectify this situation and provide retirees with a fair, simple, and transparent income assessment process that truly supports their needs.
Hi Katherine, thanks very much for your tutorial video, very good information. I receive state income pension nearly $2001 per fortnight, and will increase subject to CPI in Oct 2023. soon I will reach the maximum part pension limit. Are there any guides to keep receiving the part pension even few dollars as the benefits of part pension are great. (discount in medical, electricity, car rego, rates etc)
Hi Katherine
How Centrelink treat define benefit super.
How does deeming come into play on income test .
Hi Katherine. Great job seeing your passion for helping others with their pension years.
Hi love your info what happens if my mum on a pension gifts me over the threshold. I know it’s test each year for 5 years will affect her pension if so how? Thank you
Amazing information, easy to understand a c0mplex situation. I am interested to know if the same rules apply to disability pension for an aged couple?
Just the Australian Government politicians creating the worlds worst pension scheme, whilst creating a good one for themselves.
hi Katherine, thanks very much for your tutorial video. I have a question to ask,
should overseas pension be added as part of the fortnightly pension income test? For example: if I receive a A$200 overseas pension per fortnightly, and my Australian income is A$120 per fortnightly, then my pension income test should be calculated as A$320 in total? Please advise me, looking forward to hearing from you soon. Thanks in advance!
Hi Katharine
Thank you so much for the videos you share with the community.
Just a bit confused when you say that overseas pensions ie UK pension are $ for $ when you apply for Australian pension.
What if you are an Australian resident and lived there for 30 years and still entitled to a UK pension.? Could you help clarify this for me.
Kind regards.
help with advice, yes please, I'm transferring over to age pension, I've now 66, Ive got Unisuper accumulation, ive have savings, its all assets but must be under $280.000 for single is this correct
Hello Katherine, how do i choose a financial planner to help me negotiate the centrelink maze? We live in a quite remote region of NSW I am approaching benefit age, next May, and my wife is recipient of disability pension, and still quite a few years from retirement age. My only income in the last few years has been from withdrawals from my super fund, which is just about depleted. We own our home and we have just acquired an investment property that earns $450 per week. Love the videos
Geoff
How do I find a competent advisor to look at my position or can I contact yourself
Hi Katherine. If I have a rental property does the income test calculate the gross or net for the income test.
Yes please I wants to know how rental income is calculated under Income Test? Thanks Kath.
hi, thanks for your great videos. What is the maximum amount of money a couple can have in a bank account without affecting the pension, and is that amount of money come under the deeming rules. Again thanks for your excellent content.
hi & thank you my question is that if I receive interest twice a yr from my bank is that viewed as 2 lump sums ? 0r is it averaged out over the yr
Hi. Love your videos, thanks! Can you tell me if social security payments from the United States are considered to be pension payments?
Greetings Kath. Like your input on age pension. I am 70yrs old, full time, planing to retire to make way for younger generation, my question is what is the best month to call it quits from. Work, so I can retire. Thank u kindly
hi
Myself and wife are an age pension couple.
Can I keep a border for some extra income?
Hi, I have a question in regards to a Commknwealth CSS pension. The CSS pension is a taxable item, therefore for the aged pension / health card assessment is the CSS pension income calculation included as net (after tax) or gross . Regards Gary H.
Hi Katherine. My wife and I are on full aged pensions. We own our own home, bought 6 years ago for $364, 000, We want to move into a Retirement Village, buying a Least for around $400,00 and our home has now increased in the 6 years to around$650,000. Would this effect our Pensions?
The Australian politicians are so corrupt and incompetent and hate old people. This has been proven beyond reasonable doubt. Check out the nursing home conditions or the pensioners living in poverty. It’s got so bad that some are being forced to become economic refugees, having to move overseas to survive. The Government could easily fix this, No pensioner to pay any taxes until they receive $50,000 for a single person and if they don’t earn that then they get the full pension so that their income plus pension can be up to $50,000. If politicians claim that the old age pension is enough why do they need their high salaries and pensions?.
Hi Katherine, I would like to know more about how rental income is calculated for the income test. For example can loan repayments be considered in reducing rental income?
Hi, is income calculated as gross, or net per fortnight ? Cheers John
You are a blast Katherine. I really love watching your videos. Not sure if you see comments form old videos. Here goes, I have a small defined benefit pension from the Defence Force. Is this treated as personal or can this be treated as income for a couple (my wife and I). I am 62 so a long way from pension age.
Janice:
Hi Katherine; thank you for these incredibly informative videos which I found by pure accident. I'm hoping you can help me in my situation. I am 75 years of age and still working (I love my job) and receive a commission when I sell a property. Is it possible assuming my employer is agreeable, to convert my commissions to a fortnightly income to stay below the allowable threshold of $187.00 per fortnight plus the $300.00 per fortnight work bonus (maximum of $7,800 pa) which equals $487.00 per fortnight and in so doing retain the maximum pension, rent assistance etc. At the moment when I receive a commission, the gross amount is annualised by Centrelink and reduces my pension for 12 months from the date I received the commission. Does this sound feasible, and of course legal, to you?
I find you most helpful. I would love to learn about a rental property. Having a loan on a property with spouse, the security for the loan, the rental income etc and how it relates to the age pension.
Katherine thank you so much as it's very helpful . Yes if you could also look at the topic how rental income is calculated under the income test
Thanks Katherine, your videos are a great help, even though the system is SO confusing! My husband is retiring next week and is receiving a reasonable payout from 25 years with a company. We will be putting the money in the bank. Is this classified as income or an investment. I don’t think it’s fair being classified as both. Hopefully he may still get part pension. I am not at pension age yet. Thanks again for your great work, you put a lot of effort into your videos!
The whole thing seems so unfair and overly complex. Why cant it be an entitlement like it is in the UK. If you work 35 years and pay your taxes you get a full pension.
My parents have just retired and they seem to be down centrelink every 5 seconds making minor adjustments. They told me they needed to provide receipts to prove were they spend their money. Sounds like big brother
I wonder what the ammount of extra income a Politician is allowed to earn before they lose their pension and also the reduction of pension due to excessive Assets, my guess its the same as us Australians
can you please do realestate investment return with pension .
Thanks so much Katharine your videos are very informative and a great help thanks again.
So if I can receive regular payments from a close relative, can I put savings in a relatives account before I retire and then receive them after I retire as regular payments from a close relative without it affecting my income test? Are there any criteria I need to be careful of in doing this?