Centrelink Advice
Maximising pension eligibility
To qualify for an age pension, veterans’ pension or social security allowance an applicant must pass two tests – the Assets Test and the Income Test. Whichever test reduces the pensioner’s entitlement the most is the one that applies.
The tests are designed so people with some savings but not enough to be financially independent are entitled to welfare benefits to supplement their investment income.
However there are differences in the way investments are assessed under the tests so smart financial planning can increase pension eligibility considerably.
Chronically ill friend or relative, including your spouse?
Carer Allowance is a Social Security payment paid by Centrelink to people who care for a “disabled adult”. In order for the carer to receive Carer Allowance, both the carer and the care receiver (the caree) must satisfy certain rules. There is no income test or assets test for Carer Allowance and the allowance is not taxable.
To qualify for Carer Allowance (adult) the caree must;
- be an Australian resident;
- be a family member of the person providing the care (in some cases a person other than a family member can qualify);
- receive care in their home;
- pass an Adult Disability Assessment Tool; and
- receive care and attention from the carer on a daily basis because of a disability.
The disability definition is wide ranging and can take many forms.