I have started discussing this major change to the aged pension with some of you but to bring all up to date
From Jan 2017 the Assets Test is to be significantly tightened which will impact many people’s pension.
You may have heard the maximum level of assets people can hold and still be entitled to a pension is being reduced eg.
- Couple Home owners reduced from $ 1.163M to $ 823k
- Single Home owner reduced from $783.5k to $547k
(Excludes family home)
BUT what has not been made clear is the way this is being done will also impact many people who will still qualify for the Pension.
In essence the rate at which your pension is reduced is being doubled from $1.50 to $3 for each $1k you exceed the minimum asset levels.
The attached brochure gives more details.
There may be ways to reduce the impact and I will speak to those potentially most impacted in coming months.
I strongly suspect this will start to be a “coffee time” favourite in coming months!
In the meantime if you, your friends, parents or say grandparents would like to discuss please feel free to call me.
Link to article – Centrelink – Aged Pension changes 1st Jan 2017