The new Centrelink rules may affect your future government age pension entitlements. From 1 January 2015, deeming rules will assess the income from your account-based superannuation when determining your pension, benefit or allowance payment from Centrelink.

Account-based superannuation income streams held by pensioners and allowed prior to 1 January 2015 will continue to be assessed under the existing rules unless they choose to change products or buy new products from 1 January 2015.


The following example demonstrates how the deeming rules will be applied after 1 January 2015 compared to the current rules.

Jack (65 years old) has a superannuation account-based income stream account with a $300,000 balance. His wife receives a Centrelink age pension.

  • Currently, Centrelink will use $0 to determine the pension, allowances or benefits Peter is eligible to receive.
  • ‚Ä®From 1 January 2015, $9,300 will be used by Centrelink to determine the pension, allowances or benefits Jack is eligible to receive.


Jack’s scenario Current Centrelink assessment Assessment under Centrelink deeming rules (applicable from 1 January 2015)
Super Balance $300,000 $300,000
Minimum income (4%) $12,000 $12,000
Income drawn $12,000 The first $79,600 is deemed to earn income at 2% $1,592
Income assessed by Centrelink: Less deductible amount $16,181* The remaining balance is deemed to earn income at 3.5% $7,714
Assessed income: $0 Assessed income: $9,300 (Rounded to lowest $10)


* Account balance divided by life expectancy (for Jack, this is 18.54).


If you would like to know more information about how this rule affects your income in retirement, call 1300 541 777 or complete the form below for a free 15 minute consultation.

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