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.