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Superannuation & Retirement Updates

CHANGES TO THE ASSESSMENT OF SUPERANNUATION ACCOUNT-BASED INCOME STREAMS

Many of our retired clients would have received a letter from Centrelink in September regarding changes to the assessment of superannuation account-based income streams. Below is a summary of the basic changes to Age Pension assets tests as of September 2014 and the new deeming rules that apply from 1st January 2015.

Account-based income streams (superannuation pensions, annuities and allocated pensions or annuities) have been treated differently from other income for Age Pension purposes as they have been considered a return of capital. Centrelink uses a special formula to calculate the income amount so as to not double count the income. As of the 1st January 2015 the treatment of super pensions when assessing the Age Pension income test has changed, but only for anyone receiving the Age Pension for the first time or an Age Pensioner receiving a super payment for the first time.  All pensioners with income products in place before 1st January 2015 will continue to have that income assessed under the existing rules for the life of the product, unless they choose to change the superannuation pension product.


Click HERE to download the full edition of The Business Accelerator Magazine for  December 2014.

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IMPORTANT DISCLAIMER:This newsletter is issued as a guide to clients and for their private information. This newsletter does not constitute advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.


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