Recent age pension changes impact non pensioners too

Totally with you Pete. My Dad went through all the awful stages described above, and it sometimes takes a force of will to remember him as the intelligent, hard-working, caring and successful man he was for most of his life. Mum now the same age has terminal pancreatic cancer, is still at home with in-home care and with her usual clarity, dignity and courage, has applied for VAD, legal here in WA.

Why does Centrelink assess my share portfolio at market value without allowing for capital gains tax liability ?

I'd suggest two main reasons.
1) they don't know your tax situation so aren't in a position to calculate how much capital gains tax you'd pay if you liquidated your shares today;
More importantly
2) the dividends you get paid aren't reduced to take account of the tax you'd pay which you seem to think means you don't really own as many shares.. Since the main reason for including assets in Centrelink tests is to allow for income that is or could be earned on those assets, it's the full pre-tax value that matters.

Thank you Brendan for this article. Could you please give consideration to doing one on the income eligibility for the aged pension. Especially in relation to eligibility for people that continue to work and earn less that the income cut-off figure.

I recently retired form work at 70 years old and am on 12 months Recreation Leave/Long Service Leave at half pay. By investigating I found that since I had reached retirement age I was eligible for a part pension payment as my assets are below the $954,000 cut-off figure.

Because I had an SMSF I found it hard to research as neither the Centrelink website or the local Centrelink staff had any information/idea on how to include it in the assessment or to review the changes in value (invested mainly in shares). I also found that I could previously have been in full-time employment on a wage less than $92,144pa (current figure) and received a part pension since I was 65 years old.

Research taught me not to tell CentrelinkI had finished work and was on Long Service Leave but that I was still in paid employment, otherwise I would miss out on some income benefits.

By advising Centrelink of my employer details a copy of my fortnight pay slip is downloaded direct by Centrelink and I am requested to confirm the figure online on the due date. Centrelink then advises me what part-payment amount I am entitled to that fortnight.

When discussing eligibility for a part pension with others I worked with it surprised me how many people over pension eligibility age, and still working, that would be entitled to a part pension but had no idea. Some had retired husbands that simply hated going into Centrelink.

Good Afternoon John, One of my clients forwarded the link of Brendan's article and I continued on to read the comments. It is a shame that you were unaware of possible entitlements to a part age pension once pensionable age and still working. At the moment if you were granted an age pension - this is how it would work for you; re: assessable assets - if your SMSF is in accumulation stage it will be the value only and the EOY financials would need to be supplied to Centrelink for assessment (net assets is the figure Centrelink will base the value of the SMSF on). Re: working, Centrelink will base you and your partners gross income + any deductions from the gross ie: employee additional contributions to super pre-tax or allowances etc, THEN they will add to this amount your deemed income from your financial investments, then deduct the allowable income (couple $336 or single $190) then deduct the work bonus $300 per fortnight (if you can claim and be granted the Age Pension prior to end of December 2023 - you will also have the additional $4K work bonus deducted from your gross income). 

All these laudable thoughts on end of life. They count for nothing as you approach the time. Nature determines your last breath unless you cheat by suiciding. It is grossly unfair to ask any living soul to end your life for you, more so when you cannot do it for yourself. You do not usually have a choice how or when you die so entering that vegetative, loss of capacity you dread so much is not a choice but a part of the natural process. Medicos, family and friends can help make this natural process as comfortable as possible, but in fighting against it, you will make it harder for them and most miserable for yourself. So be grateful for yourself, fill your life with love and friends, think well for and of others and you will die comfortably, loved and surrounded by family and friends.

Commonwealth Seniors Health Card (CSHC) calculator:
https://pensionhelp.com.au/commonwealth-seniors-health-card-cshc-calculator/

Couple, not separated, not caring for children, adjusted taxable income $59,566 (tax free threshold), super disbursement ('pension') accounts <= $3,835,822: Eligible = yes.

Why cant a single have nearly a million dollars and still get some pension. It is discrimination... And damnation. People are stating that they dont want to be a burden on society... Well offs in some cases are.

I agree. I’ve told my family if I get to the point where I don’t recognise them l’m already gone. I have no wish to be a burden on them or society.

Moneys no good to you once you die so I say get a reverse mortgage and live it up and that way there won’t be any relatives fighting over money later

No point being the richest person in the cemetery.

Love this

Using the figures above of $780 lost per $10k over the full pension asset test tells me this... unless your rateable assets are earning 7.8% or better then you're better off hiding money in Vegemite jars. Some may say super funds can produce better than this in good years. True, but unless you sell the car, caravan ie; convert assets to cash then 7.8% will never be realised nor guaranteed. When was the last time a standard bank account offered 7.8%?

Government control on who should live and who should survive just because you are nearing the end of your life is a horrible idea. No one should die because they haven't enough money.

Thank you for this article it has cleared up a lot of items I was confused about although I still have some confusion especially about Down Sizing
Than You
John Kean

I think when you are nearing your use by date, the government should offer you an option to end your life. Who wants to be a expensive burden and still not have a quality life. I have seen both of my parents in age care, it is depressing, pitiful and it is not something which I want for myself

Well said..just give us the options and we make the call based on indervisual circumstances

Amen. Couldn’t agree more

Entirely agree, Peter. I have no wish for my children and grandchildren to have a lasting memory of me as a physical and mental wreck, and the prospect of being a (very expensive!) prisoner in an aged care home is depressing in the extreme

I agree.

Totally agree i have witnessed many family members over the years suffer. when we reach this point we should be the ones who when in good health can implement documents to say when i want my life to end with dignity you just have to look at the stress families go through its cruel for all involved.

I believe you are right. I would opt for quality of life once I reach that point (use by date).

I agree wholeheartedly, it is not a crime to commit suicide but it is a crime to provide the means to have a sensible suicide. Many methods are messy, painful, and importantly create trauma for loved ones whilst a sensible outcome would be to discuss the end with loved ones and have a sensible, manageable end. We can of course go to a number of european countries where euthanasia is allowed but at significant cost and generally die alone with most loved ones able to be there.

Totally agree Peter. They call it 'caring'. It's not. I want cognitive tests done on myself privately and the ability to organise my affairs and die with dignity at the time of my choosing. My mother is is misery in aged care and just wants to go home to die. I want to be holding her hand when it happens.