Centrelink
Introduction
The Centrelink section of Cashflow & Capital helps you to determine your clients Centrelink eligiblity, update and manage information relevant to Centrelink benefits, and review its impact in both pre-retirement and post-retirement.
It is made up of three tabs that you can navigate between along the top of the page, which includes Summary / Pre-retirement / Post-retirement.
Below these tabs each page will have their own buttons that allow you to make relevant changes as required, which we will go into detail further.
Summary
The Summary tab should look similar to the below, depending on the data that has already been input.
The left side shows you information on the assets owned by your clients, the right relevant information on Centrelink information. The bottom graph displays modelling of Age Pension eligibilty under each of the two tests (assets and income) and the actual Age Pension received v Maximum eligible.
The pencil icon in the top left corner will allow you to edit relevant information related to your client.
This includes whether they are eligible for the DVA Pension or Work Bonus, their Pension age and waiting period if relevant.
You can also choose whether your clients assets as assessable, deemed or not assessable.
If you click on the personal assets field you can input the clients Contents, Vehicle & Other non financial assets values, any indexation and start and end dates.
Pre-retirement
The information in the pre-retirement tab will show any pre-retirement pensions/allowances based on the information entered within fact find & C&C.
In this tab you are able to select any disability support pensions that may be relevant, or new start allowance that your client may be eligible for. Additionally, you can include any Family Tax benefits or Rent Assistance. These can all be input by clicking on the pencil icon.
You can also make manual adjustments to the income or assets test as required per year.
Post-retirement
The post-retirement tab will show you any Centrelink benefits your clients may be eligible for in post-retirement.
The key information on this tab is presented within a table, which includes all relevant information on Centrelink benefits including;
- key financial information on your client that will impact their Age Pension outcomes
- the assets test and potential Age Pension against this test
- the income test and potential Age Pension against this test
- the total pension received based on the lower of the above two
Adjustments & gifting example
The only field that can be modified here is adjustments to the assets and income test, which can be either a positive or negative number (ie increase or decrease in the asset/income test for that year). This can help with making relevant manual adjustments for assets or income that may or may not be measured against the Age Pension eligibilty.
For example, if your client was to gift $100,000 to a family member the current legislation allows only $10,000 per financial year or $30,000 over 5 financial years. While the funds of $100,000 will be removed from the assets and income of your client in C&C, the government will still consider the excess funds as part of your clients assets test & apply deeming rates to income these in your income test. You can make the relevant adjustments here that ensures the Age Pension calculations are correct while removing the asset value from your clients modelling.
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