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Australian Government

Payments & ServicesFinancial Information Service

In today's presentation...

• Australian Government Payments

• Waiting Periods

• Income and Assets

• Rates

• Concessions

DISCLAIMER:

The information in this presentation is intended as a guide only.

Human Services cannot warrant that it is complete, accurate or free from faults.

The presentation is current at 20 March 2014

Human Services recommends that persons refer to Human Services Online (humanservices.gov.au), Human Services telephony or Human Services Service

Centre, to fully enquire about income support payments and/or services.

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Financial Information Service

• free, confidential service

• available to everyone

We can help you to• understand financial planning principles• make informed investment decisions• use your money to best advantage• understand social security and taxation

Who we are…

DisabledLooking for Work

Caring for Someone

Retired

Your Situation…

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Newstart

• over 22 years old

• unemployed or working part-time

• capacity to work

• residence qualifications

Looking for Work

Disability Support Pension

• over 16 yo, but under Age Pension age

• medical impairment

• unable to work more than 15 hours pw for at least 2 years (or be retrained)

*Those who are able to work at

least 15 hours pw will be expected to look for work.

Permanently Disabled

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Carer Payment

• providing constant care to someone with a severe disability or medical condition.

Carer Allowance may also be payable

• not means tested

Caring for Someone

Age Pension

• men 65 years

• women 64½ years

• in Australia > 10 years

2009 Federal Budget : from 1 July 2017 Age Pension age will be progressively raised to 67 years

Retired

Birth Date Age When

1/1/46 to 30/6/47 64 2010-2011

1/7/47 to 31/12/48 64 ½ 2012-2013

After 1/1/49 65 After 2014

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From 1 July 2017 Age Pension age will be progressively raised

to 67 years

Retired

Birth Date Age

1/7/52 to 31/12/53 65.5

1/1/54 to 30/06/55 66

1/7/55 to 31/12/56 66.5

1/1/57 and after 67

• Compensation Preclusion

• One Week Waiting Period

• Income Maintenance Period

• Liquid Assets Waiting Period

Waiting Periods

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• Termination payments treated as income for the duration of the period they represent

• Includes

• Annual leave

• Long service leave

• Redundancy payments

• Irrespective of what you do with the money

Income Maintenance Period

• Single

• One week for every $500 above $5,500

• Couples

• One week for every $1,000 above $11,000

• Maximum waiting period is 13 weeks

• Starts from date of unemployment, sickness or study

Liquid Assets Waiting Period

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Include

• Cash

• Money in bank, building society and credit union accounts

• Term deposits, shares, managed funds etc

• Account based / allocated pension balance

• Payments made to you by former employer

• Do not include superannuation

Liquid Assets

Liquid Assets - 13 weeks

IMP - 23 weeks

Payment commences

Note: Age Pension and Carer Payment are not subject to these waiting periods.

Waiting Periods

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• Eligibility depends on individual situation• eg Age Pension / Newstart

• Amount paid depends on combined income and assets

• Includes same-sex couples living together

• Examples• Partner working - income may preclude entitlement

• Neither working - usually both claim Newstart

• Child(ren) under 6 - Newstart / Parenting Payment

Couples

• Motor vehicles, boats, caravans etc

• Household contents and personal effects

• Bank accounts, investments, loans

• Real estate

• Farms, businesses

• Antiques, collectables

• Gifting

Assets include

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• Principal home and up to 2 Ha of surrounding land on same title

• Funeral bonds, prepaid funerals

• Superannuation/rollover investments

• until Age Pension age

• unless converted to an income stream

Assets DO NOT include…

Assets above threshold

Allowances - no entitlement

Pensions - pension reduces $1.50 pf per $1,000

Homeowner Non Homeowner

Single $196,750 $339,250

Couple $279,000 $421,500

Asset Test Thresholds

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Homeowner Non Homeowner

Single $758,750 $901,250

Couple $1,126,500 $1,269,000

No Pension if assets are above…

• Gross earnings from employment

• including salary sacrificed income

• less Work Bonus or Working Credit

• Overseas income

• Income streams and superannuation pensions

• Rent from real estate

• Farm or business income

• Deemed income on financial investments

Income Includes:

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All financial investments are aggregated

(cash, shares, bank accounts, investments, loans)

Single

• first $46,600 is assessed at 2.0%

• remainder is assessed at 3.5%

Couples

• first $77,400 combined is assessed at 2.0%

• remainder is assessed at 3.5%

Irrespective of the actual income received

Deeming

• Single maximum rate is $519.20 pf provided assessed income is below $100 pf

• Couples maximum rate is $468.70 pf each if assessed income is below $100 pf each

• higher rates may be payable• over 60 yo after 9 months

• single with children

Allowance Rates

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• Single

• Maximum Rate is $842.80 pf• Income affects rate if above $156 pf

• No entitlement at $1,841.60 pf ($47,881.60 pa)

• Couples

• Maximum rate $635.30 pf per person

• Income affects rate if above $276 pf combined

• No entitlement at $2,817.20 pf ($73,247.20 pa)

Pension Rates

• All pension recipients

• Primary entitlements

• Health, pharmaceutical

• Transport

• Household bills

• Informal entitlements

• Club memberships, sports, entertainment

Pensioner Concession Card

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• Age Pension age

• adjusted taxable income below

• $50,000 - single

• $80,000 - couple (combined)

• no asset test

• Seniors Supplement

• single - $876.20 per annum

• couples (ea) - $660.40 per annum

Commonwealth Seniors Health Card

• Health Care Card

• Allowances

• Low income

Concessions

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Employment Services 132 850

Disability and Carers 132 717

Retirement 132 300

Family Assistance 136 150

Multilingual Service 131 202

humanservices.gov.au

Contacting Human Services

Thank you!

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