How to Calculate Age Pension in Australia 2024
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- čas přidán 24. 08. 2024
- This video looks at how the age pension is calculated in Australia. The age pension is calculated using the income and asset tests, with whichever test gives the lowest result being the one that is used.
Please note this video was filmed in 2024, so figures may change into the future. This video is in no way shape or form financial advice.
This was the best explanation of the income and assets test I have ever seen. Thankyou very much for providing it. Centrelink should refer people to this video for an explanation.
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They do the same, punch in the numbers, that's how it works.
The clarity and simplicity of this explanation begs the question as to why Centrelink seem unable or unwilling to do the same.
hahahahha I hear that!
In my experience many of their products have become so complicated that many of the Centrelink staff do not understand them and certainly most are unable to explain them.
Thank you for this video. This is the best explanation about how to calculate the age pension I've seen so far! 👍
I have to agree with the comments below. This is the best explanation I have ever seen. Thank you!
that really explained these calculations very well .. thank you
Wonderful Excel sheet and explanation. Are you sharing this Excel sheet? I can build my from watching yours but it would be easier if you were sharing your work :)
This is great. My only comment would be that "home contents" and "motor vehicle" are assessed at "fire sale" value, not the "real value" which reduces your total assets.
As they are of no financial use or gain to anyone unless sold, they should not be there at all. Yes, they are an asset in an accounting term but in a real term they are not. If they were a business they would only have a tax value if sold. For pension assessment they should be treated the same as a business asset, not taxable until sold. I equate taxable and valued for pension reduction as being equivalent operationaly. If sold, the money would appear in the bank column. But until then they are not just neutral they are a liability.
This accounting fraud is because pensions are and have always been, seen by the coalition as welfare and have educated the right wing media and many others to see it that way. When its not welfare its an earned entitlement. Earned by years of paying tax, and creating the Australian economy.
@@jimspc07 The LNP was the first to refer to the Aged Pension as welfare when Scummo was the PM.
The Aged Pension was established as a user pays pension through the tax system. During the Howard government the accumulated pension fund was dumped into consolidated revenue - by the time we got to Scummo it was called welfare.
@@ColinCreevy1 Howard saw Government pensions as welfare. In fact he gave very generously to "self funded" retirees, on frequent occasions, always specifically excluding government funded retirees as he did not like anyone who got welfare getting other than something enshrined in law, or controlled by a liberal government. He was a DIY liberal and anyone who was not DIY should be barred from anything except austerity for ever.
Then don't forget that the employer compulsory superannuation payments were not part of wages either. and therfore were not part of a remuneration package, packages were only for the management and bosses.To make them part of wages, a media campaign was commenced to make it sound as if it had always been "Your" money so it was therefore part of a package and all of a sudden everybody was on a "package". See, a pay rise and shift in thinking all done and dusted. Also the Libs don't like any scheduled lift in % as its now welfare paid by the employee to the workforce for no productivity gain. Though they don't know what productivity is.
This is a strange attitude by the Libs as the intention of the compulsory super system was to eventually take over the as the main pension system, the government pension being for those who fell through the cracks and who worked in a compulsory super excluded business. But once the Libs dont like something they never change their spots. Ideology till they die.
Thank you, nice clear explanation. I will get nothing while our politicians and public servants walk away with lifelong pensions. The system is corrupt snd broken.
Why nothing? If that is the case, you failed both asset and income test, which means you must be RICH and complaining about it, LOL.
@@johngreydanus2033 I do fail both and have contributed many millions in tax through my life and would have no issue if it was a level playing field. My point is our political class make laws for themselves and other laws for the rest of us. Example Dan Andrews getting a $300k pension and driver for the rest of his life. For what ? Being a politician who bankrupted a state.
@@ricecrash5225 Can't help you there, have the best retirement you can.
@@johngreydanus2033 My point is we spend billions every year in political and public servant pensions and here we are stripping down scraps for those that actually contributed to the productivity of this country. Politicians and career public servants are welfare recipients, a lot of whom have never paid a single cent in tax. The system is broken.
This system benefits the poor, not the rich entitlement. I see nothing wrong with that. The rich still have their yacht and cocktail parties, they do not need small money from government. The poor need every little cents just tot survive.
Can you please share your spreadsheet?
What happens when one person is older? Say one is 67 and the other 65 please
Can I download your spreadsheet?
Well done and spoken at a good slow pace and some duffers complain about microphone, they will always be duffers and racists. Thank you for this you simplified for many as I already knew this but wanted to check the quality of your presentation, it was great.
This was so much easier to follow and understand. Thank you! I have subscribed.
Excellent presentation. Thank you.
Thanks for a clear video. If you’re sharing that sheet, I’d love a link to it. Cheers
Thank you for a very clear explanation. Would it be possible for you to make the spreadsheet available please?
Excellent information. thanks alot! What about investment proprety with morgage? Is it a physical asset or financial asset? How the rental income and interest rate be factored into the calculation?
Thank you that was very helpful.
Hi, thanks for this explanation. there are a number of calculatiors available online but we can't seen the workings. Will you share your spreadsheet??
how do you value the accumulation of gold and silver?
Great explanation. Cheers!
Thank you, very helpful. My brain is a bit cooked with the income test bit, but I will watch again ! I did get an estimate from centre link but good to see if I am on track!. Recommend reading the barefoot investor book by Scott Pape.. Gives a little hope to those of us who emigrated later and don't have big super funds.
The problem with the Australian pension is there are at least three different types. There is the minimum pension and there are one which can be used for keeping your pension by giving your money upon from saving your home to our family. This will allow you to continue with your pension while the money is put in a FAMILY TRUST FUND.. there is the one that are independently invest your money but there is a legislation which is called ASSETS TEST. This means that you will or could lose up to 40% of your pension fortnightly $1,142.80 as low as $670.30 a lose of $472.50
Thank you kindly for the information you provided . Gives a good understanding of how is calculated . Dose it apply to couple that have few years age difference ?
Well Done good video
Good explanation, thanks a lot
Excellent Video
Great work
unfair question - do you have a copy or a link to the spreadsheet please?
Your example should have been at the age of pension, 67.
But other than that, an interesting video.
Why wouldn't you pay off the mortgage? - Decreases assets and stops mortgage payments to the bank
Yes, same as the credit card example near the end, that is the point he is making.
Is an overseas pension considered as work income too? Thanks
Definitely considered as income, I receive a very small amount from Canada Pension, but not enough to affect the Australian pension. Watch at 9:15 the first 300 is excluded so if you're getting more, lucky guy!
@@johngreydanus2033 it’s my mum - 3 x pensions so I’ll definitely be checking she’s declared everything.
@@BeeBee-ku1ym I don't know your Mum full details but I assume she was born overseas, which in my case, they would not even consider my Australian application until I submitted the required paperwork for Canada Pension, so they are fully aware and informed at all times.
@@johngreydanus2033 she’s been upfront and they have the information- I’m just concerned errors can be made. Best to check. 👍
Amazing that anyone with that much assets, especially a house, investments, superannuation, shares, vehicle, savings, even is eligible for a pension. Do an example for someone with nothing, no income, no house, no car, no savings, no investments.
Yeah, full aged pension, you hardly need a spreadsheet for that, but seems you must have zero financial knowledge if you’re in such a position?
@@aussiestallion69 You got it, zero knowledge and zero dollars.
And a lose of $12,553.80, therefore not receiving any benefits because the government has taken a large part of you pension. This is how the Australian government dragged down pensioners who invest so they can earn money regardless of how you are supposed to on less on over 40% pension. Allowing those who have a Family Trust Fund to get a full pension.
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Use a damn pop shield on your microphone ffs. Oh and given your speech impediment how about just use an AI generated voice?
Nice piece of racism there. Mum must be so proud...
@@spokebloke1 just a fact, actually have no idea what race he is, and don’t care.
@@aussiestallion69 Agree - not at all racist - just rude.
@@ColinCreevy1 don't care on iota