Wednesday, April 29, 2015

Full Pension and $53,000 pa

We recently assisted a number of financial advisors on methods to achieve the full pension while still working. To explain the options we will look at the process in small steps and be a bit simplistic. In subsequent post we will expand upon the scenario. Let's say we have a couple - Jack & Jill - who run a small business, are both of age pension age and are paying themselves a small wage. We may have both Jack and Jill paying themselves $6,500 per annum - which is the limit of the Work Bonus Scheme. Hence this combined $13,000 pa is exempt from the income test. Now lets say they have other earnings of $7,000 pa - such as additional income. More typical would be if this income were as a result of deemed income. For example they may have $250,000 in bank accounts - below the assets test - which results in a deemed income of just under $7,000 pa. Again this income is below the income test threshold of approx. $7,400 pa. So they now have a combined income of $20,000 pa - wages and deemed income. The full pension for a couple is more than $33,000 pa. The combined income is more than $53,000 pa.


  1. I think you may find the $7000 deemed income is counted as income in the income test.

    1. I think you will find that the Work Bonus Scheme deductions for employment are undertaken before considering other income sources - e.g. deemed income. The above numbers have been confirmed with Centrelink with the full pension entitlement payable in addition to the employment income.

      There have been some changes to the Work Bonus Scheme with respect to 'credits' for each reporting period. I may do a new blog to explain how this operates and further clarify the above.