Superannuation and Age Pension Eligibility

CoggerGurry • August 10, 2023

During retirement, many people rely on a combination of their superannuation savings and their age pension to sustain them moving forward financially. Accordingly, a front-of-mind issue for individuals is at what point do the superannuation savings and payments impact your eligibility for the age pension? 


While someone is under age pension age, concerning any Centrelink payment, Centrelink does not count your or your partner’s superannuation balance in the income or assets test if your fund is not paying you a superannuation pension. However, that pension is considered if your fund pays you a superannuation pension. 


Once you reach age pension age, Centrelink counts your super (a) in the assets test and (b) in the income test under the deeming rules. The same rules apply to your partner and their super when they are age pension age, even if they are not receiving a Centrelink payment. 


Deeming is a set of rules determining the income your financial assets create. It assumes these assets earn a set rate of income, no matter what they earn. The main types of financial assets are: 


  • savings accounts and term deposits 
  • managed investments, loans and debentures 
  • listed shares and securities 
  • some income streams 
  • some gifts you make. 

 

Centrelink includes any deemed income as your income under the income test. The income test helps Centrelink determine how much income support it can pay you. Taking money out of superannuation doesn’t affect your Centrelink payments, but you may be impacted by the deeming rules (see earlier) depending on where that money is invested outside super. 



Recent research into retirement confidence by Monash University found that people aged 50 and over – who take time to understand and plan their finances – are less anxious about transitioning into retirement. It found that they were more confident overall about their retirement options. Knowing how much of the age pension you could be eligible for can help you understand your finances in retirement. 

Making Electronic Signing Easier for You

By Cogger Gurry • August 29, 2025
We’re excited to share that we’ve upgraded our client signing experience—now powered by FuseSign! This intuitive, secure platform lets you sign documents in minutes (not days), straight from any device, and is simple to use. There’s no need to download apps or remember passwords - just click the link, review your documents, and sign. With industry-leading security and a smooth, hassle-free process, signing important documents has never been faster or easier. You can find out more about FuseSign Here

Understanding The 20% HECS-HELP Debt Reduction

By Cogger Gurry • August 29, 2025
As part of its re-election commitment, the Federal Government has passed legislation to reduce all outstanding HECS-HELP debts by 20%. The Bill passed the Senate on 31 July 2025 and will come into effect once it receives Royal Assent. The reduction will be applied retrospectively to student loan balances held as at 1 June 2025. While many borrowers have recently seen their loan balances increase due to the 3.2% annual indexation, the Government has confirmed that the 20% discount will be calculated based on the loan amount before indexation was applied. How the Reduction Will Work: Once the legislation is in effect, the Australian Taxation Office (ATO) will automatically apply the 20% reduction to eligible student loan accounts. Indexation will also be recalculated using the reduced loan balance, delivering further relief for borrowers. This change builds on previous reforms that now link indexation to the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI), rather than CPI alone, an approach designed to ease the financial pressure on graduates. Lodging Your Tax Return: If you’re getting ready to lodge your tax return, you don’t need to delay. The ATO will automatically apply the discount in the coming months. If you’ve fully repaid your student loan since 1 June 2025, you may be eligible for a refund equivalent to the 20% discount (subject to any other outstanding tax liabilities). Other Changes to Student Loan Repayments: The legislation also introduces changes to repayment thresholds. From 1 July 2025, the minimum income threshold for compulsory student loan repayments will increase from $54,435 to $67,000, making repayments more equitable. If you have any questions about how these changes may affect you or your tax return, please get in touch with CoggerGurry today, we’re here to help. Tel: 03 5571 0111

Division 296 Tax Update

By Cogger Gurry • August 29, 2025
Parliament has resumed, and we are watching closely for the introduction of the Division 296 tax Bill to the lower house. While the Government is managing a number of priorities, the extra time provides us with the opportunity to continue planning with clients who may be affected and to ensure we are ready when the legislation is finalised. Although no update has been given on whether the 1 July 2025 start date will be deferred, we’ll keep you informed as soon as there is more clarity. In the meantime, rest assured that we are monitoring developments carefully and will provide guidance and advice as soon as the position becomes clearer.
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