There will be two results from the new rules that apply to the assets test from January 1, 2017. As a result of the pension reduction factor increasing from $1.50 up to $3.00 for every $1000 over the lower asset limit, a couple’s entitlement to the age pension ceases once their assets exceed approximately $816,000.
Currently anyone who is not in receipt of an age pension is entitled to a Commonwealth Seniors Health Card if they pass the income test. Under that test a couple receive the CSHC if their annual income is less than $84,472.
As the health care card is one of the most prized possessions of anyone receiving the age pension the government announced anyone that loses this card, as a result of the change to the assets test, will effectively receive a CSHC without any income test applying in the future.
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