Parliament was busy in the month of June, passing a number of proposals from the 2014 and 2015 Federal Budgets.
The new laws affecting older Australians include:
Pension Asset Test
From 1 January 2017, you will be able to hold more assets without affecting the full pension entitlement.
On the downside, once you are over the full pension asset limit, your pension will reduce at a faster rate than under today’s rules.
Our “Budget to impact retirees” blog looks at how you will fare when the new rules apply.
Health Care Card
Health Care Cards/Commonwealth Seniors Health Card will automatically be granted to those losing their pension in 2017.
Seniors Supplement
Payment of the Seniors Supplement to Commonwealth Seniors Health Card or Veterans’ Affairs Gold Card Holders ceased from 20 June 2015.
Defined Benefit Pension
From 1 January 2016, the amount of your defined benefit pension excluded from Centrelink income test assessment will be limited to 10% of the annual pension paid. This may result in Centrelink counting more of your defined benefit pension in calculating your age pension entitlement.
For more information consult your Quill Group Financial Planner by clicking here.
About The Author: The Quill Team
Quill Group is your specialist adviser for accounting, taxation, insurance, financial advice, investment, estate planning and superannuation.
We have offices on the Gold Coast (Southport) as well as Brisbane (Eight Mile Plains), Sunshine Coast (Maroochydore), Adelaide (Wayville) and a visiting office in Alice Springs.
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