The Centrelink Puzzle: Understanding the Age Pension Means Tests
The Age Pension uses assets and income tests to calculate your payment, and the harsher result applies. Many retirees do not realise that changing how wealth is held can change which test applies. Decisions like selling a property, gifting money, or downsizing can reduce or increase your pension in unexpected ways. Effective retirement planning should always include Centrelink modelling before you make major financial moves.
Power of Attorney: The Document That Could Matter More Than Your Will
An enduring power of attorney gives a trusted person authority to manage your finances if you lose capacity. Without one, your family must apply to a tribunal before they can access accounts or manage your affairs. That process can take months and adds stress and cost during an already difficult time. Completing a valid, state‑specific power of attorney while healthy is one of the most important planning steps you can take.
The New Super Tax: What Division 296 Means for Large Balances
From 1 July 2026, Division 296 will add extra tax on super earnings linked to balances above $3 million. The tax applies only to the portion of earnings tied to the balance above the thresholds. The rules focus on realised income and gains, and the thresholds will index with inflation. Very few people will be affected at first, but the change signals tighter limits on super tax concessions over time.
Q & A
- Which matters more for my pension, income or assets?
Centrelink uses both tests, then applies whichever gives you the lower Age Pension payment.
- Should I worry about the new tax on super balances over $3 million?
The tax affects only earnings linked to balances above the thresholds, but it still shapes long‑term strategy.
- Why is an enduring power of attorney so important?
It lets a trusted person manage your finances if you lose capacity, without a slow and stressful tribunal process.
