Retirement is a time to enjoy the fruits of one’s labour, but for many, the financial aspect of it can be daunting. One of the major concerns for couples is how much their partner can earn before their Centrelink Age Pension payment is affected. Knowing the rules and understanding how to calculate the impact of their partner’s income can help retirees make the most of their financial situation.
Calculating Pension Impact
The amount of income a partner can earn before it affects a Centrelink Age Pension payment depends on the couple’s combined income and assets. The Australian Government’s Department of Human Services has an online Income and Assets Calculator that can help couples work out how much their partner can earn before their Age Pension payment is affected.
Income and assets are assessed on a fortnightly basis, so the calculator will take into account any income or assets accumulated over the past 12 months. It’s important to note that the calculator only takes into account income and assets that are assessable by Centrelink. This includes any wages, investments, superannuation and other investments.
Understanding Centrelink Rules
Couples also need to be aware of the Centrelink rules that apply to their Age Pension payments. The rules are designed to ensure that all eligible couples receive the same amount of Age Pension payments. For example, couples must declare any income from the partner’s employment, investments or other sources that is over the allowable limit, as this will affect their Age Pension payment.
It’s also important to note that any changes in a partner’s income or assets must be reported to Centrelink within 14 days. This includes any income received from employment or investments, as well as any changes in the value of assets. Failure to do so may result in a penalty.
Understanding how much a partner can earn before their Centrelink Age Pension payment is affected is important for couples looking to make the most of their retirement. By using the online Income and Assets Calculator, couples can work out how much their partner can earn before their Age Pension payment is affected. It’s also important to be aware of the Centrelink rules that apply to Age Pension payments, as any changes in a partner’s income or assets must be reported within 14 days.