Legally minimising your assets for Centrelink [March 2024] March 5th, 2024
This guide emphasizes the importance of updating Centrelink records before an upcoming payment rate increase to ensure recipients receive their full entitlements. It covers checking and updating valuations for assets and investments, as well as maintaining accurate bank records via my.gov.au. Taking these steps can prevent potential reductions in payments due to changes in asset values.
Upcoming Payment Rate Increase
With the next increase in payment rates due to kick in on the 20th of March, 2024, now is the time to check and update your Centrelink records to ensure you get the most from the increase in rates. There’s a chance that the improvement in share valuations could see your expected pension increase wiped out and possibly, even a reduction in your fortnightly payment.
Automated Review of Investments
A lift in payment rates also triggers an automated review of all unit-based investments Centrelink have recorded. This includes share holdings, but also superannuation and other managed investment funds. Account-based pension funds receive separate treatment and are usually updated in March and August, so you might use this opportunity to check that the Centrelink records are accurate.
Importance of Current Valuations
Checking now is important, because the valuation of an investment with any type of share exposure is likely to have risen. When the last automatic update was run in September 2023, the ASX S&P 200 index was about 6 percent lower than it is now. When Centrelink computers calculate your new entitlements from March 20, they will use unit and share prices from the end of February.
Ensuring Accurate Records
The trick and indeed a legal requirement, is to ensure that all of the records held by Centrelink are accurate. Centrelink sometimes double up, particularly if you opened up new bank accounts with the proceeds of another. Equally, even though you provided full details including account numbers and copies of statements when you claimed a benefit, Centrelink doesn’t routinely track account balances or values. It is up to you to keep them up to date.
Updating Information via my.gov.au
The easiest way to update the information is via the Centrelink service in my.gov.au. Firstly, check that the fixed asset values reflect the current valuations. Things like cars, caravans, and boats depreciate in value. Use the current private sale values which you can get from sites like carsales.com.au or even gumtree.
Checking Bank Balances and Investments
Next, check that the bank balances are accurate. Also, check that the records aren’t showing any closed accounts. You may need to provide copies of closing statements, but the system will usually prompt you if that’s required. Next, look at the unitised investments and check that the number of units or shares showing is accurate. You may have cashed out some super for a trip or received shares through a dividend reinvestment plan.
Update your Centrelink Schedule
If you have recently cashed out money from an account-based pension since Centrelink last updated, you can provide a new Centrelink Schedule. You can normally download a current schedule from your super fund any time.
Reviewing Investment Properties
Lastly, double-check any investment properties shown. Make sure the valuations are about right. If left alone, Centrelink will typically re-value properties every couple of years, but there’s normally no set frequency.