2. Who we are...
“Accessible
information for
all Australians”
Free, confidential service,
available to all
We specialise in:
•Social Security
•Taxation
•Superannuation
•Financial Industry rules
3. What we do...
Information about investment options
• Investment types and strategies
• Advantages and disadvantages
• Security and risk
Effect on
• Pensions and allowances
• Taxation
“Helping people make best use
of their financial resources”
4. But, we do not...
Advise on or recommend
any particular: “Financial
• Products Information…
• Providers not Financial
Tell you what to do with Advice”
your money
• That decision is yours
Assess pensions and
allowances
5. Our service to you
• Financial Seminars
• Phone
• Personal
consultations
132 300 or
humanservices.gov.au/fis
6. Today’s Presentation
• Looking for Work
• Australian Government Payments
• Waiting Periods
• Income and Assets
• Rates
• Concessions
8. Your Situation...
Planning to
Retiring Study Disabled
Looking for Raising
Work Caring for Children
Someone
9. Looking for Work
Under 22 yrs old
- Youth Allowance
Over 22 yrs old
- Newstart
• Unemployed or working part-time
• Capacity to work
• Residence qualifications
10. Claiming a Payment
132 850 or humanservices.gov.au
Intent to Claim
• download claim forms (if required)
Rapid Connect to Job Services Australia
• interview with employment service provider
11. Employment Pathway Plans
• Those of workforce age who are able to
work are expected to seek paid work
• Training activities
• Work experience
• Work for the Dole
• Voluntary Work
13. Planning to Study
Under 25 yrs old
• Youth Allowance
Over 25 yrs old
• Austudy
Abstudy
14. People with Children
Parenting Payment*
• if partnered
• dependent child under 6
• if single
• dependent child under 8
Family Tax Benefits
• discussed in more detail later
*Those granted before 1/7/06 may remain on Parenting Payment
until youngest child turns 16 (conditions apply)
15. Permanently Disabled
Disability Support Pension
• over 16 yrs old
• under Age Pension age
• medical impairment
• unable to work more than 15
hours pw for at least 2 years (or
be retrained)
*Those who are able to work at least 15 hours
pw will be expected to look for work.
Special provisions if granted DSP before 1/7/06
16. Caring for Someone
Carer Payment
• providing constant care to
someone with a severe
disability or medical
condition.
Carer Allowance may
also be payable
• not means tested
17. Retired
Age Pension
• Men 65 years
• Women 63½
• In Australia > 10 years
2009 Federal Budget : from 1 July 2017 Age Pension age will progressively raise to 67 years
18. Couples
• Eligibility depends on individual situation
• (eg. Newstart / Age Pension)
• Amount paid depends on combined income
and assets
• Includes Same-Sex couples living together
Examples
• partner working - income may preclude entitlement
• neither working - usually both claim Newstart
• child(ren) under 6 - Newstart / Parenting Payment
19. Waiting Periods
Types Applies to ...
Compensation Preclusions All pensions/ allowances
Seasonal Work Preclusion Period Except Age Pension
Income Maintenance Period Except Age & Carers
One Week Waiting Period Allowances only
Liquid Assets Waiting Period Allowances only
20. Seasonal Work Preclusion
Applies to
• Seasonal work
• Contract or sub-contract work
• Casual or intermittent work
Where earnings were above AWOTE
• Singles - $1,322.60 pw
• Couples - $2,665.20 pw
21. Income Maintenance Period
• Termination payments treated as income for
the duration of the period they represent
• Includes
• Annual leave
• Long service leave
• Redundancy payments
• Irrespective of what you do with the money
Redundancy payments assist
financially while you look for
another job…
You can’t get pensions and
allowances for the same period
22. Income Maintenance Period
George will receive 3
weeks annual leave and a
package equivalent to 20
weeks of his pay…
George must serve a 23 week income maintenance
period before he can be paid Newstart
He plans to use the money to repay a car loan, but
before doing so he needs to set aside enough to cover
his regular living expenses for at least 23 weeks
23. Liquid Assets Waiting Period
Single
One week for every $500 above $2,500
Couples
One week for every $1,000 above $5000
•Maximum waiting period is 13 weeks
•Starts from date of unemployment,
sickness or study
24. Liquid Assets...
Include
• Cash
• Money in bank, building
society and credit union
accounts
• Term deposits, shares, managed funds etc
• Account based / allocated pension balance
• Payments made to you by former employer
Liquid Assets do not include
superannuation
25. Waiting Periods
Liquid Assets: 13 weeks
Payment
commences
IMP (for example: 23 weeks)
Note - Age Pension and Carer Payment are
not subject to these waiting periods.
27. Assets include...
• Motor vehicles, boats, caravans etc
• Household contents and personal effects
• Bank accounts, investments, loans
• Real estate
• Farms, businesses
• Antiques, collectables
• Gifting
28. Valuing Assets
• Net market value
• Motor vehicles, household contents etc
• Your estimate
• Real estate
• Current market value
• Australian Valuation Office
• Financial investments
• Current value or account balance
29. Asset DO NOT include...
• Principal home and up to 2ha of
surrounding land on same title
• Funeral bonds, prepaid funerals
• Special disability trusts
• Super/Rollover investments
• Up until age pension age
• Ministerial exemption
Paul is 65, and his wife Gill is 58.
Superannuation in Gill's name is not
included when assessing Paul's Age
Pension
30. Asset Test Thresholds
Threshold* Cut-out point
Homeowner $192,500 $696,250
Single
Non-homeowner $332,000 $835,750
Homeowner $273,000 $1,032,500
Couple
Non-homeowner $412,500 $1,172,000
Assets above threshold
• Allowances: no entitlement
• Pensions: pension reduces $1.50 per fortnight per $1,000
* Thresholds are indexed annually on 1 July
31. Income includes...
• Gross earnings from employment
• Including salary sacrificed income
• Overseas income
• Income streams and superannuation
pensions
• Rent from real estate
• Farm or business income
• Deemed income on financial
investments
32. Deeming
All financial investments are aggregated
(cash, shares, bank accounts, investments, loans)
Single
• first $45,400 is assessed at 3%
• remainder is assessed at 4.5%
Couples
• first $75,600 combined is assessed at 3%
• remainder is assessed at 4.5%
… irrespective of the actual income received
33. Deeming - Example
Brian is single and has the following investments:
Bank account $ 4,473 @ 1%$ 44 pa
Term deposit $ 72,000 @ 5.5% $3,960 pa
Shares $ 28,000 $1,120pa
Total $104,473 $5,124 pa ($197 pf)
Brian's deemed income
First $ 45,400 @ 3% $1,362 pa
Remaining $ 59,073 @ 4.5% $2,658 pa
Total $104,473 $4,020 pa ($155pf)
34. Allowance Rates
• Single maximum rate is $489.70 pf provided
assessed income is below $62pf
• Couples maximum rate is $442.00 pf each if
assessed income is below $62pf each
• Higher rates may be payable
• over 60 years old after 9 months
• single with children
35. Pension Rates
Single
• Maximum Rate is $755.50pf
• Income affects rate if above $152pf
• No entitlement at $1,663.00pf ($43,238.00pa)
Couples
• Maximum rate $569.50pf per person
• Income affects rate if above $268pf combined
• No entitlement at $2,546.00pf ($66,196.00pa)
36. Update your details with us...
• Human Services does not know if your income or
assets change
• Periodically update your:
• Bank account details
• Share portfolio
• Asset values
• Income details
• Changes to super payments
• Register to view and update
income and assets online
37. Family Tax Benefit
• Dependent children or
students
• Paid to the parent or
guardian
• Payment made by
Human Services
• Fortnightly
• Lump sum after
lodgment of tax return
38. Family Tax Benefit
Based on "adjusted taxable income"
• Estimate for current financial year
• Reconciled against income tax returns
While receiving pension or allowance
• Income test free - maximum rate paid
• Maintenance income test only
39. Family Tax Benefit - Estimates
Revise estimate at any time
• (eg as soon as you are aware of future redundancy)
Redundancy and leave payments
• Leave payments are taxable
• Include in estimate
• Redundancy payment - tax free portion
• $8,806 + $4,404 per completed year of service*
• Do not include in estimate
• Redundancy payment - taxable portion
• Excess above tax free portion
• Include in estimate
* Rates current for 2012/13
40. Family Tax Benefit - Estimates
• Redundancy and leave payments
• Revise current estimate
• May need to revise again as changes
occur
• (eg. you get a new job)
136 150 or
humanservices.gov.au
41. Concessions
• Health Care Card
• Allowances
• Low income
Redundancy payment is
averaged and included as
income over the 12 months
following payment
42. Concessions
• Pensioner
Concession
Card
• Commonwealth
Seniors Health
Card
• State Seniors
Cards
43. Other Issues
• Child Support / Maintenance
• Payroll deductions
• Change in income
• Contact CSA on 131 272
• Dependant children over 16 yrs old
• May qualify for Youth Allowance, or
• Increased rate of Youth Allowance
44. Contacting us
Employment Services 132 850
Disability and Carers 132 717
Retirement 132 300
Family Assistance 136 150
Multilingual Service 131 202
45. Online Services
Telephone or web self service
Register
Check your details
• View income and assets
• Payment details
• Make claims online
• Request cards/statements
• Many others
humanservices.gov.au
46.
47. FIS Seminars
FIS presents seminars which may interest
you
Topics include:
•Investing with Safety
•Creating Wealth
•Superannuation
•Protecting Your Assets
For further information, check out:
humanservices.gov.au/fis
then click on ‘Seminars’
48.
49. GEERS
General Employee
Entitlements and Redundancy
Scheme
To assist employees who are
• made redundant due to bankruptcy or liquidation of
their employer, and
• owed unpaid wages, leave or redundancy payments
workplace.gov.au
1300 135 040