Centrelink and retirement

With the right advice, even the most financially prepared retiree may be able to receive some Government support in the form of a part pension or benefit card.

The purpose of Social Security is to support Australians in retirement. Obviously, some individuals will qualify for more support than others, but you may be surprised at the various ways in which Centrelink can help. Even qualifying for a Commonwealth Seniors Health Card could save you money.

Financial planning experts can help you structure your retirement income to ensure that you can take advantage of the Government support that you have earned. To make an appointment with Telstra Super Financial Planning you can call Telstra Super on 1300 033 166 or request an appointment online.

Can I qualify for Government assistance?

Below we discuss the more commonly accessible forms of Centrelink support - the Age Pension and Commonwealth Seniors Health Card - but depending on your circumstances you may also qualify for other payments. Detailed advice on the full range of options offered by Centrelink can be found on their website.

Age Pension

The Age Pension exists to provide an income for people who have reached retirement age, and require some level of support through retirement.

The maximum pension rate as at 20 March 2013
Single $733.70* per fortnight
Couple $553.10* (each) per fortnight

* These amounts exclude a pension supplement that is currently: single $61.20, couples $92.20 combined.

You may qualify for the Age Pension if you:

  • pass both the Income and Assets tests
  • are an Australian resident or meet other residence requirements
  • are male aged 65 years or over
  • are female and above the current qualifying age. 
Date of birth Qualifying age - Female Qualifying age - Male
Before 1 July 1947 64 65
1 July 1947 to 31 December 1948 64.5 65
1 January 1949 to 30 June 1952 65 65
1 July 1952 to 31 December 1953 65.5 65.5
1 January 1954 to 30 June 1955 66 66
1 July 1955 to 31 December 1956 66.5 66.5
1 January 1957 and later 67 67


Income test

To receive the maximum pension amount your fortnightly income must not exceed the limits set out below. Income over these amounts reduces the maximum pension payable by 50 cents in the dollar.

Income you may earn to receive pension payments
Maximum pension Part pension*
Single up to $152.00 less than $1,663.00
Couple up to $268.00 less than $2,546.00

* This figure may be higher if you are eligible for Pharmaceutical Allowance. These figures may be higher if you also qualify for Rent Assistance.

Assets test

To receive the maximum pension amount your assets (excluding your primary residence) must not exceed the limits set out below. Assets over these amounts reduce the maximum pension payable by $1.50 per fortnight for every $1,000 above the limit (single and couple combined).

Assets test for home owners to receive pension payments
Maximum pension Part pension*
Single up to $192,500 less than $696,250
Partnered† up to $273,000 less than $1,032,500
Assets test for non-homeowners to receive pension payments
Maximum pension Part pension*
Single up to $332,000 less than $835,750
Partnered† up to $412,500 less than $1,172,000

* Pharmaceutical allowance included. These figures may be higher if you also qualify for Rent Assistance.
† Combined

 

Commonwealth Seniors Health Card

The Commonwealth Seniors Health Card is only available to self-funded retirees who are of Age Pension age but not receiving any Age Pension.

A Commonwealth Seniors Health Card helps older Australians with:

  • receiving a discount on PBS prescription medicines
  • accessing medical services funded by the Australian Government
  • accessing concessional rail travel on Great Southern Rail Services
  • access to concessions provided by state, territory and locals governments
  • receiving a Seniors Supplement; which aims to help you meet the cost of daily household and living expenses.

The current rate for the Seniors Supplement are:

Single $845.00 (each) per annum
Couple $637.00 (each) per annum

Your eligibility for the Seniors Supplement is automatically assessed when you claim a Commonwealth Seniors Health Card.

To receive a Commonwealth Seniors Health Card, your taxable income* must not exceed these limits:
Single $50,000
Couple† $80,000

* Currently, income from superannuation retirement income streams such as Telstra Super RetireAccess, will not be counted as taxable income for the purposes of the Commonwealth Seniors Health Card.
† Combined