With July 1 just around the corner there are a number of new Centrelink rules that could impact your financial situation when they come into effect. Here are the ones that you need to know about.
The Work Bonus allows most pensioners who’ve reached the age pension age to disregard the first $250 per fortnight of their employment income under Centrelink’s income test. From 1 July, this will increase to $300 per fortnight, which also means the maximum unused fortnightly amounts you can accrue will increase to $7,800 per annum, up from $6,500. So you’ll be able to ear more from work before your pension reduces.
Additionally, from 1 July 2019, the Work Bonus will be extended to include eligible earnings from self-employment.
Assessment of lifetime income streams
Lifetime income streams (such as lifetime and deferred annuities) will be assessed differently under the social security income and assets tests if they are purchased on or after 1 July 2019. If you are considering commencing a lifetime income stream, the choice of whether to purchase it before 1 July, or on or after 1 July, could therefore make a big difference to your level of social security entitlement.
To find out more information about the changes and how they can impact your financial situation contact our office and speak to our financial advisers.