30 July 2007

Changes to the Centrelink Assets Test and Complying super pensions

On 20 September 2007 changes to the Centrelink Pension Assets Test come into effect as part of the Australian Government’s plan to simplify and streamline the rules around super.

The changes mean that many people already on part-pensions from Centrelink will have their payments increased. More people will also become eligible for Centrelink and Department of Veterans’ Affairs pension payments and concession cards.

As the thresholds for pensions are increasing, the downside is that some “complying” pensions will lose their current 50% asset test exemption status. Therefore this may be the last chance you get to maximise the potential pension from Centrelink under the Assets Test. (Note that Vision super life-time pensions for defined benefit members will continue to be 100% asset test exempted).

Vision Super offers a range of low cost, flexible income streams for people who are still working, thinking about retiring or have already retired which qualify for the Assets Test exemption.

This area is complex so you should speak to us before deciding whether to implement any retirement strategy. As the cut-off date for taking out a “complying” income stream is fast approaching you need to act quickly and obtain personal financial advice by completing our Fact Finder. This allows us to capture all your details prior to providing you with recommendations.

Vision Super must receive your completed Fact Finder by the 10 August 2007 in order for you to obtain personal advice in time. This will allow us time to meet with you, confirm your details and then proceed to prepare your personal plan. Recommendations for commencing a complying pension must be approved by you and implemented by the no later than the 13 September 2007. This will give us the necessary business days to process the commencement of a complying pension so it becomes effective prior to the 20 September 2007.

Contact Member Services on (03) 9911 3222 (1300 300 820 for regional callers) to obtain a Fact Finder or download a copy by clicking here.

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