Centrelink Issues
Dated: May 2004
Recent changes announced
by the Government will have impact on how "complying" annuities
and pensions will be treated by centrelink from September 2004. Currently
the asset value of these investments is not assessed, however, from
September the asset value of any new investment will only be reduced
by 50%.
At the same time "growth
pensions" will also be introduced, so there will now be more choices
for retirees. We believe these "growth pensions" will be similar
to allocated pensions but will have a 50% asset reduction for Centrelink
pensions, therefore, providing additional opportunities for retirees.
The new rules mean we have
to reassess our future strategies, however, there is now a small window
of opportunity for some pensioners to actually increase their age pension
entitlement.
We encourage all
investors who are not receiving the full age pension to contact us prior
to July to review your pension entitlement.