Australian Aged Pension

[David Walden]

On 4/7/2018 at 6:22 PM, ELVIS123456 said:

I agree it is out of order and really proves nothing.  But the Govt wanted to stop people coming back and staying with family/friends for a few weeks while they applied for the OAP, and then once it was approved they immediately left and took it with them.  I think anyone who has lived 35+ years in Aust (post 16) should be exempt from having to return to apply for the OAP.

 

 

I din't think you will get much mileage by going down this road.  If you want to be successful....also the aged pension assets income  threshold is different if you are an owner or part owner of a house. 

[oxymoron]

On 4/6/2018 at 4:53 PM, nev said:

Better not let your wives know they will still get your pension when your gone, you will be worked into the Wat and cremated before you know it. ?. Just jesting lads ?

Many a true word is said in "jest"

[David Walden]

On 4/6/2018 at 10:22 AM, Old Croc said:

Funds transfer history from your Oz bank.

You can have $457,000 + in the bank super fund or under the carpet, not own a house or other assets and you will received the Australian Aged Pension in full.  Plus rent assistance if you reside in Aus.  The threshold is different if you own a house.  It is unlikely that many if any contributors to this site will have any problems with the assets test.  You might as well keep your money in Aus or are we wasting our time discussing what do we do with our asset above $825,000 APPROX.

 

It seems that much of this discussion is about applicants that just have not read "The Instructions" about applying for the pension.  If you live in Aus for the required time it will all happen with very little fuss.  If you are applying and intend to live overseas then when granted then you need to put your thinking caps on about 5 years or so before  applying...there are ways?  

[Nemises]

You can have $457,000 + in the bank super fund or under the carpet, not own a house or other assets and you will received the Australian Aged Pension in full. 

Wrong!

Having $457,000 + in the bank will earn deemed income well beyond the allowable full pension limit.

[giddyup]

4 minutes ago, Gregster said:

 

Wrong!

Having $457,000 + in the bank will earn deemed income well beyond the allowable full pension limit.

 

And usually deemed well in excess of current bank interest.

[David Walden]

4 minutes ago, Gregster said:

 

Wrong!

Having $457,000 + in the bank will earn deemed income well beyond the allowable full pension limit.

 

The deeming does not apply with the assets test..  You can have your $457,000 invested anyway you like, most people have it in Super, yes super is an asset.  You can go down this road as often as you like anytime.   Centrelink will need to be informed because you might be "up to no good".  It will not effect your pension,  it may improve you pension if you are over the limit of assets.  If it is in super no tax is payable either.  The asset test is less if you do own a house (or half) about $257,000.  I'm sorry for those people who have a million dollars and don't get the pension.  The only solution is "blow it" until the assets get down to about $600,000 for couples for a part pension and then down to $457,000 if you are single and you will get a full pension (no rent assistance if overseas)...why do you think world cruse ships a fully booked in Aus.  You often have to stand in line to see a travel agent for a $100,000 trip.  These people are living it up so they can get the full pension.  "Blow it,  get a camper van SKI vehicle (spending kids inheritance).

[Nemises]

The deeming does not apply with the assets test..  You can have your $457,000 invested anyway you like, most people have it in Super, yes super is an asset.  You can go down this road as often as you like anytime.   Centrelink will need to be informed because you might be "up to no good".  It will not effect your pension,  it may improve you pension if you are over the limit of assets.  If it is in super no tax is payable either.  The asset test is less if you do own a house (or half) about $257,000.  I'm sorry for those people who have a million dollars and don't get the pension.  The only solution is "blow it" until the assets get down to about $600,000 for couples for a part pension and then down to $457,000 if you are single and you will get a full pension (no rent assistance if overseas)...why do you think world cruse ships a fully booked in Aus.  You often have to stand in line to see a travel agent for a $100,000 trip.  These people are living it up so they can get the full pension.  "Blow it,  get a camper van SKI vehicle (spending kids inheritance).

You are wrong.


Having anywhere near $400,000 in the bank (or in super or under the carpet) will result in deemed INCOME far exceeding the allowable INCOME limit to obtain the full pension.

[ELVIS123456]

8 hours ago, halloween said:

Ah crap - I used the wrong term, my apologies. Change pension bonus to work bonus and it will be correct. https://www.humanservices.gov.au/individuals/services/centrelink/work-bonus

 

If you are in Oz and a tax resident you can earn $418/fn (168 + 250) without loss to OAP or paying tax. Even if you leave Oz the 250/fn accumulates to max $6500.

All good - and that looks great.  I will study it up a bit, but on first look it looks just the thing.  When in Aus I can make a few decent bucks and no affect on OAP and no tax - win/win. 

[David Walden]

2 hours ago, Gregster said:

 

You are wrong.


Having anywhere near $400,000 in the bank (or in super or under the carpet) will result in deemed INCOME far exceeding the allowable INCOME limit to obtain the full pension.

 

OK...we are talking about a single person in Australia or overseas who has been granted the Australian Aged Pension and does not own a house...I'm sorry I got it wrong.  The asset threshold is not $457,000.00 but is exactly $456,750.00 at present .  That means what it says you can have these amounts of assets and Centrelink does not want profit and loss details etc.etc. just wants to know how much you have.  That can be money in the bank, super fund, a racing car you name it is an asset.  I repeat deeming does not come into the picture under the assets test.

If all your assets are under the $456,750.00 and Centrelink accepts this a fact on you declaration you will receive the full aged pension ( I say aged pension because it can be different for other pensions)

   So yes you can have $400,000 in a bank, super or other and $56,750 in a bank account and you will still receive the full pension all above board...so why not keep your assets in Aus why would you want to stuff around taking you money overseas if your assets are less the threshold...boofhead.

 

Study this...https://www.humanservices.gov.au/individuals/services/centrelink/rent-assistance

 

reads the facts above .

[Nemises]

OK...we are talking about a single person in Australia or overseas who has been granted the Australian Aged Pension and does not own a house...I'm sorry I got it wrong.  The asset threshold is not $457,000.00 but is exactly $456,750.00 at present .  That means what it says you can have these amounts of assets and Centrelink does not want profit and loss details etc.etc. just wants to know how much you have.  That can be money in the bank, super fund, a racing car you name it is an asset.  I repeat deeming does not come into the picture under the assets test.
If all your assets are under the $456,750.00 and Centrelink accepts this a fact on you declaration you will receive the full aged pension ( I say aged pension because it can be different for other pensions)
   So yes you can have $400,000 in a bank, super or other and $56,750 in a bank account and you will still receive the full pension all above board...so why not keep your assets in Aus why would you want to stuff around taking you money overseas if your assets are less the threshold...boofhead.
 
Study this...https://www.humanservices.gov.au/individuals/services/centrelink/rent-assistance
 
You are all barking up the wrong tree, reads the facts above .

You have no idea of allowable INCOME to obtain full pension, so I won’t waste any further time with you.

Does anyone else believe David and think you can have more than $AU400,000.00 cash in bank (or in super or under the carpet) and still expect to receive the FULL old age pension?

[David Walden]

52 minutes ago, Gregster said:

 

You have no idea of allowable INCOME to obtain full pension, so I won’t waste any further time with you.

Does anyone else believe David and think you can have more than $AU400,000.00 cash in bank (or in super or under the carpet) and still expect to receive the FULL old age pension?

 

 

Please note this situation similarly applies to me.  My experience is first hand.  You clearly have no idea what asset, income or deeming issues with Centrelink are about, as is the case with most pensioners.  If you study the link I have attached at some length you may see that our pension can be quite generous if you have a few dollars to invest. ..super is the simplest and it's tax free.  The gov is trying to grab some of that ?

[Nemises]

Please note this situation similarly applies to me.  My experience is first hand.  You clearly have no idea about asset, income or deeming issues with Centrelink are about, as is the case with most pensioners.  If you study the link I have attached at some length you may see that our pension can be quite generous if you have a few dollars to invest. ..super is the simplest and it's tax free.  The gov is trying to grab some of that ?

You posted that you’re allowed to have more than $A400,000.00 “in the bank or in super or under the bed” and still receive full pension.

I call BS on that. It is completely false and misleading. Let’s wait and see if others think you are correct.

So far no one agrees with you..

[sceadugenga]

https://www.amp.com.au/news/2016/october/changes-to-the-age-pension-assets-test

[sceadugenga]

https://www.superguide.com.au/accessing-superannuation/age-pension-deemed-income-may-rise-with-interest-rates

[Nemises]

https://www.amp.com.au/news/2016/october/changes-to-the-age-pension-assets-test

Thanks mate, but that link is about the assets test. We need a link about the INCOME test, as it’s the income test that comes into play if one has more than $A400,000.00 in the bank, super or “under bed”.

[watcharacters]

On 7/7/2017 at 12:07 PM, sceadugenga said:

The flow of cash out of Australia to expat pensioners is actually a lot less than goes in to overseas pensioners spending time in Australia.

I had the figures somewhere but can't place them right now.

 

 

 

 

What do you suppose is the reason for the rough treatment of expats regarding their pensions?

 

I think Australia is doing pretty well economically so shoddy treatment of expats seems unwarranted.

 

 

[David Walden]

54 minutes ago, sceadugenga said:

https://www.amp.com.au/news/2016/october/changes-to-the-age-pension-assets-test

Ignorance is bliss.  You clearly need to study the link.

[sceadugenga]

No name calling please.

 

Post removed.

[Nemises]

12 hours ago, David Walden said:

 

 

 

 David, you earlier posted that you can have $457,000 + in the bank (or in super or under the carpet) and still get the full OAP.  

For the 3rd time now (or is it the 4th or 5th?) you are completely wrong and more importantly your false information is continuously misleading other members on here.

 

These facts confirm how wrong you are:

 

• a single pensioner can earn up to about $4,200 income pa and still receive the full pension

 

• Centrelink deem savings (money in bank, super, under carpet) as follows: First $50,200 @ 1.75%. Thereafter @ 3.25%

 

• therefore Centrelink would deem your $457,000 to have earned you income of approx $14,000 pa..... about $10,000 more than you’re allowed to earn to receive the full pension!

 

David, I hope that the above helps you understand about pension INCOME limits and Deeming. Here’s some links to further educate you.

 

DEEMING RATES:

https://www.google.com.au/search?q=deeming+rates+pension&ie=UTF-8&oe=UTF-8&hl=en-au&client=safari

 

 

AGE PENSION INCOME LIMITS:

https://www.google.com.au/search?q=income+limits+for+age+pension&ie=UTF-8&oe=UTF-8&hl=en-au&client=safari

 

I really hope this helps you David. Please let me know if you still think “you can have $457,000.00 + in the bank, in super or under the bed and still get the full age pension”.

 

 

 

 

 

 

 

 

 

 

[halloween]

3 hours ago, Gregster said:

a single pensioner can earn up to about $4,200 income pa and still receive the full pension

The work bonus scheme allows you to earn an additional $6500 pa FROM EMPLOYMENT without loss of pension.

[halloween]

14 hours ago, ELVIS123456 said:

All good - and that looks great.  I will study it up a bit, but on first look it looks just the thing.  When in Aus I can make a few decent bucks and no affect on OAP and no tax - win/win. 

Important to maintain your tax residence in Oz for tax free. Advice received is to maintain an address, bank a/c ( best if only a/c), phone number, licence, electoral roll. I also have a registered vehicle (old m/cycle, single seat rego Qld $311 pa) and club memberships.

Optus has a 6 month prepaid for $30, and they will keep your number for a further 6 months.

 

 

[oxymoron]

Amaysim uses OPTUS Network $10 for 12 months validity.

 

Great as number for contact required by most Australian banks.

[sceadugenga]

Reference to moderation removed, a second post edited.

 

Getting angry because people will not agree with you is not really helping the discussion, make your points and move on, I can remove members from this topic, and for that matter ThaiVisa if it continues but this is an important thread for many people.

 

Lets give people credit for being able to form their own opinion from the facts (or otherwise) available.

 

The Centrelink site has a number of phone numbers available where anything said here can be confirmed or otherwise.

The legislation is complex, settle down and discuss it politely.

 

 

[David Walden]

7 hours ago, Gregster said:

 David, you earlier posted that you can have $457,000 + in the bank (or in super or under the carpet) and still get the full OAP.  

For the 3rd time now (or is it the 4th or 5th?) you are completely wrong and more importantly your false information is continuously misleading other members on here.

 

These facts confirm how wrong you are:

 

• a single pensioner can earn up to about $4,200 income pa and still receive the full pension

 

• Centrelink deem savings (money in bank, super, under carpet) as follows: First $50,200 @ 1.75%. Thereafter @ 3.25%

 

• therefore Centrelink would deem your $457,000 to have earned you income of approx $14,000 pa..... about $10,000 more than you’re allowed to earn to receive the full pension!

 

David, I hope that the above helps you understand about pension INCOME limits and Deeming. Here’s some links to further educate you.

 

DEEMING RATES:

https://www.google.com.au/search?q=deeming+rates+pension&ie=UTF-8&oe=UTF-8&hl=en-au&client=safari

 

 

AGE PENSION INCOME LIMITS:

https://www.google.com.au/search?q=income+limits+for+age+pension&ie=UTF-8&oe=UTF-8&hl=en-au&client=safari

 

I really hope this helps you David. Please let me know if you still think “you can have $457,000.00 + in the bank, in super or under the bed and still get the full age pension”.

 

 

 

 

 

 

 

 

 

 

Once granted the aged pension and you have fully retired and you have a part time job there is still a threshold which you can have up to this amount free of any loss of pension, then the deeming takes effect.

 

  If your additional incomes is from assets.  That is income from any assets you have be it a rental house , money owed to you ( you lend or give it to the kids $100,000 for a deposit on a house $ 90,000 will still be an asset).  It would be folly for Centrelink to try and establish how much income you receive from assets they would need 10,000 accounts to service this aspect of their business alone.   That is SMSFunds and super funds, general shares purchased by youth,  profit from part time taxi driving (yes you have to have an ABN to do that) and so on forth.

 

   So Centrelink for the purpose of determining your aged pension which you now receive uses mostly, nearly always the assets test.  They don't care how you got the assets,  Where you also have a job like a school bus driver then the issue of income above the threshold will be subject to "Deeming" but not very often.  Most aged pensioners don't have a apart time job paying $38 per hour for 10 years like I did.

 

The link I've put on this site clearly spells out you entitlements under the assets test and I'll put the link up again.   Butttt for about the 10th time now Centrelink's site detailing entitlements under the aged pension says  "that if you get as a single Australian Aged Pension and do not own a house you will receive the full pension plus rent assistance and you can have $456,750 in any asset you wish to save it. and $253.750 if you do own a house of course you will not get rent assistance.  Centrelink does not want to know what dividends you get.  My modest super is treated as an asset it is grandfathered so I pay no tax on it.  Lately the gov by trickery has place a 15% tax on on super profits payed by the Super companies before you see it...now that is a great con by the gov.  Since time began governments have said put you money in super it's free of tax.  With this great trick the tax is paid before you see the dividends and no tax credits are available by low income pensioners .  This better then the 3 card trick.

 

  If you are single and own a house worth $506,750 and rent it out it is now an asset (you don't live it) only the house you live is free of the assets test.  OK if your house is worth $507,750 that means you have an asset worth  of $50,000 anything under $456,750 is not counted as a asset.  Centrelink will now reduce your pension by $3,00 for each $1000 of assets per  fortnight, this amounts to $150 deducted of you $907 P/F pension each fortnight.  Centrelink does not want to know anything to do with the bookepping or profits and losses.  They asses you pension payments by the value of your investment asset.  The same situation applies to all assets held by pensioners.  Except! except! where you have a wage which will be subject to deeming.

 

Please read this:-

 

https://www.amp.com.au/news/2016/october/changes-to-the-age-pension-assets-test

[Nemises]

Thanks David for sharing your thoughts on the age pension ASSETS test. But what about the INCOME test? I provided with you a link about the income test.

Question for you David..Do you still think you can get the FULL pension if you have $457,000 + in the bank (or in super or under the carpet)?

It can only be a “yes” or “no” answer. So PLEASE answer the question with a yes or no.

[David Walden]

1 hour ago, Gregster said:

Thanks David for sharing your thoughts on the age pension ASSETS test. But what about the INCOME test? I provided with you a link about the income test.

Question for you David..Do you still think you can get the FULL pension if you have $457,000 + in the bank (or in super or under the carpet)?

It can only be a “yes” or “no” answer. So PLEASE answer the question with a yes or no.

My answer will be the same and the same answer you will get from Centrelink...YES!    You clearly have not read the Centrelink link I put on this site. Yes. https://www.amp.com.au/news/2016/october/changes-to-the-age-pension-assets-test

If you apply the formula with the example of pension reduction I have shown that is if  the house you are renting out is valued at $747,000 that is when you will have used up your part threshold and your pension will stop.  The bad part of this is if can't find a tenant for your house  you will still lose your pension.  It's an asset.

[ELVIS123456]

2 hours ago, Gregster said:

Thanks David for sharing your thoughts on the age pension ASSETS test. But what about the INCOME test? I provided with you a link about the income test.

Question for you David..Do you still think you can get the FULL pension if you have $457,000 + in the bank (or in super or under the carpet)?

It can only be a “yes” or “no” answer. So PLEASE answer the question with a yes or no.

Greg you are dead right - suggest refrain (message).

 

For those who want to know, here is the facts:

 

https://www.humanservices.gov.au/individuals/enablers/income-test-pensions

 

 

https://www.humanservices.gov.au/individuals/enablers/assets-test-age-pension

 

[ELVIS123456]

13 hours ago, halloween said:

Important to maintain your tax residence in Oz for tax free. Advice received is to maintain an address, bank a/c ( best if only a/c), phone number, licence, electoral roll. I also have a registered vehicle (old m/cycle, single seat rego Qld $311 pa) and club memberships.

Optus has a 6 month prepaid for $30, and they will keep your number for a further 6 months.

Absolutely - I own a place car etc. in Aust and will be returning for a period every year.

I use Aldi - they will also keep number and a credit for up to 12 months.

Before I bought, I would 'rent' a room from a relative/friend and use that street address for electoral roll, licence, bank account, medicare, etc etc, and a PO Box for all mail - which the friend/relative uses for free and scans/sends you anything important. These days most businesses and Govt Depts use email notifications, so all good.

 

 

[David Walden]

11 minutes ago, ELVIS123456 said:

Greg you are dead right - suggest refrain (message).

 

For those who want to know, here is the facts:

 

https://www.humanservices.gov.au/individuals/enablers/income-test-pensions

 

 

https://www.humanservices.gov.au/individuals/enablers/assets-test-age-pension

 

Quite enough so far...this site may have 3 or 4 thousand post on it,  people asking questions about mainly how to go about getting the Australian aged pension overseas  assets,  income and now deeming .  Most of the contributors who post here have not got a clue about it,  they all want you to supply an answer that will please them, can't have them...if you want to talk about deeming that will go on forever...a short? answer deeming is a way of establishing for the purpose of Centrelink mostly to establish what your assets are...That's my only answer.

 

Give it a break.

[David Walden]

21 hours ago, Gregster said:

Thanks David for sharing your thoughts on the age pension ASSETS test. But what about the INCOME test? I provided with you a link about the income test.

Question for you David..Do you still think you can get the FULL pension if you have $457,000 + in the bank (or in super or under the carpet)?

It can only be a “yes” or “no” answer. So PLEASE answer the question with a yes or no.

Please note none of the comments I have made on this site are my comments.  They are simply the information contained on the Centrelink link provided by Centrelink themselves.  All people have to do if they want to take up a pension in Aus or overseas is just read that link, and "be happy don't worry"   https://www.amp.com.au/news/2016/october/changes-to-the-age-pension-assets-test   well there it is again...read it.  Just about every question that has been asked on this site you will find an answer there.