Problem Set 11 - Solutions Q.1 Describe the main features of Centrelink’s Assets Test. Under the Assets Test, the rate of pension or allowance is reduced where the recipient (or recipient’s partner) holds assets over a specified limit. The retiree’s home is not counted in the Assets Test. There are two tables, one for homeowners and one for non-homeowners, which provide Asset Test thresholds (reductions apply if exceeded) – part only shown (see Rates and Tables for full table): Homeowners (basic table) Status To claim full pension To claim part pension Single $186,750 $673,000 Couple $265,000 $998,000 Non-homeowners (basic table) Status To claim full pension To claim part pension Single $321,750 $808,000 Couple $400,000 $1,133,000 The current taper is $1.50 pf reduction of Age Pension for each $1,000 of excess assets. Q.2 What are the main assets excluded from the assets test? The main exempt assets are: •principal home and all land on the same title •granny flat, if not leased or occupied by a member of the family •life interest not created by person or person’s partner •superannuation investment (exemption ceases at age pension age) •contingent, remainder or reversionary interest •interest in an estate until it is received or able to be received •funeral bond up to $5,000, or two up to $11,000 •asset test exempt portions of purchased income streams •accommodation bonds paid to hostels and extra care facilities
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