Beat the Centrelink wait times with these exclusive tips February 23rd, 2024

With news over the past few weeks of significant delays in Centrelink processing new pension applications and updates to existing customers, we thought a few practical tips would be in order.

We hope that Netplan fans can avoid spreading these tips to all and sundry because quite simply, if everyone knows about them, the effectiveness will disappear, or the systems modified.

We’ll work through in the order you might follow in lodging a claim and interacting with Centrelink.

Before actually claiming

If you are self-employed and retirement will be complete, do what you can to effectively close the business down before claiming.

You might take the cash out to live, but the accountant often tweaks the books after the financial year has ended. For this reason, Centrelink generally applies the previous financial year’s income and assets for means testing purposes.

This arrangement applies to business structures such as a Pty Ltd company or a trust structure like a Discretionary Family Trust.

While you don’t have to finalise all of the closing down paperwork, you will need independent verification that you are no longer trading or receiving revenue.

If trading through a trust, you will need to have the independent person state how the trust assets and income are to be distributed to the beneficiaries. That independent person could be someone like your accountant.

Make sure you have established a MyGov account through my.gov.au and have linked the ATO and Centrelink services to your account. Your alternative is to line up at Centrelink to get the paperwork, where you will effectively be pressured to lodge online anyway.

Next, set up a myGovID profile using the myGovID app available for smartphones. If you are not into that, you may have to attend a Centrelink Office with passports, driver’s licences etc., to prove who you are.

If you weren’t born in Australia, you need separate verification that you are an Aussie permanent resident. Usually, the visa or a Citizenship Certificate.

Netplan Tip: You will need to make sure you have all the required documentation ready to go, because you need to include copies of documents in your claim. Ideally, you should have a scanner to take images of the documents or you can use your phone to take clear pictures and upload these.

These will include:

• Verification of ownership of all bank accounts. This can be the most recent statement or a “Proof of Balance” letter. A proof of balance letter can also show the current balance. An online screenshot is also fine, providing it has all the details.
• Your most recent shareholding certificates or CHESS statements, showing the company names and number of shares held. You don’t have to get a value, Centrelink will work this out.
• Statements showing the superannuation account balances. Most super funds involve investment units, so you need to provide a statement showing the total number of units.
• Statements for any other financial investments, including life insurance policies with a surrender value.
• If you have commenced an account-based pension, a copy of the “Centrelink Schedule” which you can probably download from your fund online.
• If you run an SMSF, you need to complete a “Details of Income Stream Product” form (form code SA330).
• If you have a partner and even if they are not claiming a benefit, you will need to provide all or most of the above information for them too.

Valuations of fixed assets are always a challenge but given that most second-hand dealers will give you almost nothing, contents and personal effects for a single of about $5,000 is usually accepted and $10,000 for couples. Do NOT use the insured values.

Netplan Tip: For your cars and other vehicles, use the current private-sale values NOT what you paid with all the fruit added. You can get these by using the “value my car” tools on sites like carsales.com.au to get a specific valuation for your model and year.

For those with investment properties

If you have an investment property(s) in your or your partner’s name, you will be required to complete a “Module R” (For Real Estate). That form will pop up for completion when you start the online lodgement process. For this, you will need the formal name of the property which you can get from the title deed or a rate notice. You will need to provide the Rental Schedule from your last income tax return. If you don’t lodge tax returns, Centrelink will assess 66 percent of the gross rental income to apply to your income means test. The asset value you use is the current market value. You cannot deduct the costs of selling the property.

Lodging the claim.

Assuming you are doing this online, the claim lodging process is interactive and quite easy to follow.

It will take some time as you read and click.

We suggest at least 60 minutes if you have all the material ready to go. With an online claim, you can’t submit the claim until all the supporting documents have been uploaded. If you are lodging a paper claim, some of this can be provided later and in many cases, even though they imply it is needed there and then, you can lodge or submit the claim and provide the requested information later. If anything is missing, they will make contact either by phone or by letter. Keep an eye on your MyGov inbox.

Depending on your answers, the system may flag additional forms or “Modules” to complete.

Common ones include a Module R for Real estate assets and Module F if you are running a business. Sometimes, you might also be asked to complete another form, depending on your Income and Assets.

After the lodgement.

In the old days, many claims were processed on the day. In our new, efficient, digital age, these claims now are taking nearly 80 days to process….

If your circumstances are stressed and you need the application processed quickly, Centrelink suggests you call or go in.

Netplan Tip: If visiting, best avoid Mondays. Usually, they are busy dealing with issues that may have arisen over the weekend. Also, try to avoid lunchtime or just before closing time. That leaves mid-week and probably in the afternoon at about 2:00 (all back from lunch) or maybe between 11 and 12 in the morning (between morning tea and lunch

Calling Centrelink can see you writing off most of the day waiting if you’re not clever and follow these exclusive Netplan tips.

Centrelink’s phone system determines where you’re calling from and the robots determine whether or not you’ll be connected to the queue. That’s why people on the East Coast don’t get connected to WA call centres if they call after 5:00 pm AEST and why West Australian applicants get the “office closed” message if they call very early in the morning at say 7:00 am.

Internal Centrelink policy is for all calls to be answered, including any call made before 5:00 pm. That means, making a call before 5:00pm means you’ll speak to someone and hopefully, they can deal with the query. Centrelink CAN process changes to your circumstances over the phone, but not accept new claims.

SA, NT, and WA people operating in a different time zone also benefit from having call centres operating in their state. That’s because they shut out East coast callers that ring after 5:00 pm AEST, swamping the system.

So, calling after 3:00 pm from WA and 3:30 pm from the other non-east-coast locations will hopefully reduce your wait time.

Finally, and our really secret tip applies if you are also a MyAgedCare customer. This might be through the CHSP program, home-care-packages, or residential aged care.

Given that financial assets also have a bearing on Government subsidies for aged care, many MyAgedCare staff also have “delegate” status for Centrelink. In simple terms, it means they can update Centrelink records as well. If you call MyAgedCare after the respective times above, most calls get answered inside 15 minutes!

It is a sure-fire shortcut to having changes made that might see you getting additional pension if your assets or income have declined. Equally importantly, it ensures you won’t cop an overpayment debt if your changed circumstances result in a lower pension.

You can’t use this tip if you are not a MyAgedCare client.

Lastly, remember that provided you uploaded or provided all of the required supporting documentation, your first payment will be back-dated to the date of lodgement. It could mean your first payment is a biggie.

Also, remember that any changes that might result in a reduced payment must be notified to Centrelink within 14 days.

A slight change in policy at the moment appears to be that if you are overpaid and did the right thing, they may regard the delay as an “administrative issue” and waive the debt.