GUIDE: Updating your details for Centrelink Age Pension

June 24th 2024 | Categories: Government Services |

The importance of having your asset values up to date with Centrelink, when you should make these updates and how.

Dealing with Centrelink can be notoriously overwhelming, especially for the 43% of Australian retirees who rely on the Age Pension as their main source of income. If eligible – understanding how, and when, to optimise your Age Pension benefits is the key to maximise your entitlements. 

Your eligibility and the amount you receive are determined by the value of your assets and income. Changes in your financial situation can affect your eligibility, making it important to regularly review and update your asset values with Centrelink. 

By the end of this article, you’ll gain an understanding of: 

• Why should I update my asset values with Centrelink?
• When should I update my asset values with Centrelink?
• Updating your asset values in Centrelink.
• Who can assist with updating your Centrelink asset values?

Why should I update my asset values with Centrelink?

Centrelink applies two individual financial assessments to determine your benefits:  

1. Asset Test  

2. Income Test 

Your benefits are based on the test that deems you holding more wealth. So, if your Asset Test returns a higher value than your Income Test, your Age Pension will be based on the Asset Test value. 

As a recipient, the onus is on you to keep these records up to date. Centrelink will frequently remind recipients to update their asset and income values when they increase, because let’s face it – an increase will lead to a decrease in entitlements. Equally, decreases in these values, which can increase your entitlements, are less emphasised.  

Market volatility at play can lead to potential falls in retirement savings, superannuation balances or investments. By updating your current asset values in your MyGov account during these times, you may be eligible for an increase in your pension payments. If you did not meet the requirements of the assets test and were not previously eligible for the aged pension, you potentially may now be eligible if your assets have decreased in value.    

Types of assets assessed by Centrelink: 

• Real Estate Assets: This could include properties you own and live in or leave vacant and rent out, granny flats, or retirement village contributions. 

• Financial Investments 

• Superannuation Investments 

• Lifestyle Interests 

• Income Streams 

• Business Assets 

• Funeral Investments (may be fully or partially exempt) 

• Assets Given Away (must fit within the gifting limit) 

• Special Disability Trusts (concessions may be available) 

Market Value of Items: Cars, boats, household belongings, life value of insurance policies, personal items such as jewellery. 

You can read the full list of assets included and excluded in the asset test here.

When should I update my asset values with Centrelink?

The short answer: whenever your situation or asset values change significantly. 

Centrelink typically completes a balance update for most recipients annually (usually in July). However, if your assets have decreased in value due to recent market falls, you should request a reassessment as soon as possible. 

If you are on a part pension, for every $1,000 your asset values decrease, you will receive a $3 fortnightly increase in your Age Pension benefits. For example, if your retirement account balance decreased from $500,000 to $450,000, a home-owning couple’s Age Pension entitlement could increase by an estimated $150 per fortnight ($75 per person). 

Failing to update your asset values promptly can result in missed entitlements or overpayments if your asset values increase. Deeming rates are used to assess income from financial assets. The current deeming rates for singles and couples can be found here. 

Other scenarios that should prompt an update:

• Buying or selling of an asset
• Receiving an inheritance or other large gift
• Factoring in depreciation on assets like a car or caravan

Updating your asset values in Centrelink

If you believe you may now be eligible for Age Pension benefits after previously failing the Asset Test, you will need to retake the test. Your trusted financial adviser can guide you through the application process. 

If you already receive Age Pension benefits, you are obliged to inform Centrelink of changes in asset values greater than $1,000 within 14 days. Centrelink conducts bulk valuation updates for shares in public companies in March and September, but you can request a reassessment at any time. For shares you own, the assessable value is the sale price at the time of reassessment. 

For a step-by-step guide, visit Centrelink’s online account help. 

Who can assist with updating your Centrelink asset values?

You can visit your local Centrelink office or call 132 300 during business hours for assistance.  

For guided support, your financial adviser is your partner in navigating your financial wellness journey. They will advocate what is best for you, and your individual circumstances – empowering you to live your best possible life.  

If you would like to speak with one of our trusted financial advisers about optimising your age pension benefits and/or updating your asset and income details, please get in touch. 

Still not sure? Why don’t you try our complimentary 15-minute discovery call. The first step in gaining clarity on your financial journey. Book here.  

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What you need to know

This information is provided by Invest Blue Pty Ltd. (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice regarding those matters and seek personal financial, tax and/or legal advice before acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you.