What is deeming? Deeming is the term which describes the method used by Centrelink and Veteran’s Affairs to calculate your Income Test assessable income from certain investments when determining the level of entitlement to be paid. Deeming means that you are assumed to earn a certain return on ‘financial’ investments, irrespective of the actual rate of interest or capital growth you earn. If you earn more than the deemed rate [...]
How Centrelink treats Gifting.1 In order to prevent you from simply giving away your assets to qualify for age pension and other social security benefits, Centrelink and the Department of Veteran Affairs apply gifting rules that impact income support recipients. These rules can be summarised as follows: Two tests apply in respect of assets gifted: a maximum of $10,000 in gifts is allowed in a single financial year (for both [...]
What is the Centrelink compensation preclusion period?1 A compensation preclusion period test will be applied to applicants for social security benefits who have received/ will receive compensation for injuries etc that have forced them out of the workforce. The extent of the preclusion period is calculated according to publicised criteria that can be found on the Services Australia website. The preclusion applies to benefits paid by Centrelink or the DVA. [...]