Your State Super pension and Centrelink benefits
Centrelink uses two tests, the Assets Test and the Income Test, to assess eligibility for the Age Pension. You may qualify for a part pension if your assets and income are below these limits and also meet a range of other eligibility requirements, including criteria regarding your age and residential status.
The proportion of a State Super pension counted for the Age Pension Income Test is your gross pension minus a deductible amount (which is equal to your tax-free component). From 1 January 2016, the deductible amount is capped at a maximum of 10% of gross payments. Note Veterans’ Affairs pensioners are not affected by this change. You can find this amount in the letter advising of your annual CPI indexation, and online via the secure Members' Login Area on the State Super website.
For more information refer to STC Fact Sheet 11: CPI Adjustment of your pension
To assess your pension entitlement, you must look at both the Income and Assets tests. Centrelink will apply whichever test results in the lower rate, even if it means you are ineligible for the pension. Your State Super pension is not assessed under the Age Pension Assets Test. If you would like to know more, please contact Centrelink on 132 300 or visit www.humanservices.gov.au.
Alternatively, a financial planner at Aware Super can also assist you in determining your eligibility for the Age Pension.
As a State Super member, your first appointment with an Aware Super financial planner is free of cost or obligation. It’s an opportunity to ask questions and confirm your understanding of how your scheme works, how any change to your working conditions such as working part time or taking long service leave can have an impact your super. It’ll also give you an overview of how the broader retirement system works, and the opportunities and tax benefits of staying within super through retirement.
To speak to an Aware Super financial planner about your situation, please call 1800 841 633 or visit retire.aware.com.au/statesuper.
Note: Aware Financial Services Australia Limited (Aware Financial Services) (ABN 86 003 742 756) holds an Australian Financial Services Licence (AFSL number 238430) and is able to provide you with financial product advice. Aware Financial Services is owned by Aware Super Pty Ltd as trustee of Aware Super. State Super does not pay fees to, nor receives any commissions from Aware Financial Services for financial planning and member seminar services provided to State Super members. Neither State Super nor the New South Wales Government take any responsibility for the services offered by Aware Financial Services and its related entities, nor do they guarantee the performance of any service or product provided by Aware Financial Services and its related entities.