Centrelink part pension asset value updates, Digi Mart USA News (Australia): Keeping Services Australia, the parent agency of Centrelink, up to date can be one of the simplest ways for part-pensioners to increase their fortnightly income. Under the rules, people must notify Services Australia of a change of $2000 in their circumstances within 14 days, but the article reports that many people are unaware of this obligation or ignore it.
Part pensions are generally calculated using means tests that include both an income test and an asset test. Whichever test produces the lower payment is the one applied.
Because the values supplied at the original application are usually not updated unless the person does so, the rate may not reflect current holdings.
Annette Sinclair, a former Centrelink officer who now works as a specialist Centrelink and aged-care consultant, said many people assume Services Australia tracks all their bank balances, investments and fixed assets. According to Sinclair, only some valuations are tracked automatically, including shares, managed investment unit prices and mainstream account-based pension funds, with account-based pension providers sending six-monthly updates.
Automatic revaluation does not capture every change. Sinclair said Services Australia would not know about shares or fund units that have been sold, or additional units received through dividend reinvestment programs.
Adviser Nick Bruining noted that small reinvestments may each fall below the $2000 threshold but can accumulate to a significant difference, and if an overpayment is later identified, Services Australia has a legal obligation to recover it.
Fixed assets also need attention. According to the article, Services Australia counts the scrap value of household contents and personal effects rather than insured values, which the article gives as $5000 for a single person or $10,000 for a couple.
Cars, caravans and boats are not adjusted for depreciation automatically, so a listed value may remain at the original purchase price even after it has fallen substantially.
The article gives an example in which a single asset-tested part-pensioner who withdraws $30,000 from super for a European trip could see an immediate increase of $90 a fortnight in their pension. Updates can be made through the my.gov.au portal linked to Services Australia, at a Centrelink office, or by calling 13 23 00 to make a phone appointment.
