Case Studies
On this page Age Pension
Age Pension - Dolores and Patricia's story
Pat and Dolores live in a small town in rural NSW. They have been living together for 30 years and both receive an Age Pension. When they hear about the Government's same-sex reforms, they are concerned about the effect this will have on their Age Pension, as well as the confidentiality of the information they provide.
Pat telephones Centrelink's dedicated enquiry line (13 6280) in June 2009 and advises that Dolores is her partner. On 1 July 2009, Centrelink reassess Pat and Dolores' payments to the partnered rate of Age Pension and they retain their Pensioner Concession Cards, with partner details included on each of their cards. Pat and Dolores have the option of requesting the reissue of their Pensioner Concession Cards without their partner's name displayed.
Age Pension - Allen and Joe's story
Allen and Joe have been in a relationship for 10 years. Allen is in receipt of Age Pension but Joe was not eligible for Age Pension due to his income being over the allowable limit. As their relationship was not recognised prior to 1 July 2009 Joe had been assessed as a single home owner.
Allen's assets are $10,000 and has no other income apart from his Age Pension, Joe's assets are $106,000 with an annual income of $42,000. Joe's income is not earned income so he was unable to register for the Pension Bonus Scheme.
They contact Centrelink after hearing about the changes for same-sex couples and to see if they would benefit in any way.
They were told that from 1 July 2009 the couple's income and assets would be regarded as combined. This would mean that Joe would be now be eligible for part rate Age Pension. Allen and Joe declare themselves as a couple and as at the 1 July 2009 and Joe is granted a part rate Age Pension, Allen's Age Pension rate has reduced however their combined income has increased due to Joe now being eligible for a part rate pension.
Other benefits advised were that they would both receive Pensioner Concession Cards, which would allow them to both be entitled to concessions that are available to Pension Card holders within their state. Allen and Joe have the option of requesting the reissue of their Pensioner Concession Cards without their partner's name displayed.
In addition Bereavement provisions would be available if one should pass away as they are now able to be assessed as a couple.
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Age Pension and Newstart Allowance
Age Pension and Newstart Allowance - Merv and Ron's story
Merv is in his early 70s and receives a part payment of Age Pension and superannuation payments. He has been living with Ron for 5 years. Ron is 53 years old, has been receiving Newstart Allowance for 10 years and has no other income.
In April 2009, Ron contacts Centrelink to obtain more information about the effect on their payments as a result of the same-sex reforms. Centrelink provides Ron with an estimate of his future payments from 1 July 2009. Ron and Merv's payments are recalculated on 1 July 2009 at the partnered rate and taking into account Merv's superannuation payment.
Merv's Age Pension is reduced to the partnered rate and Ron's Newstart Allowance is paid at the partnered rate and reduced slightly because of Merv's superannuation. Merv will retain his Pensioner Concession Card and Ron will retain his Health Care Card, with partner details included on each of their cards. Merv and Ron have the option of requesting the reissue of their Pensioner Concession Cards without their partner's name displayed.
Merv and Ron might benefit from a discussion with a Financial Information Service (FIS) Officer to discuss the impacts of the superannuation amount being assessed.
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Assets Hardship Provisions
Applying Assets Hardship Provisions (Allowance) - David & Greg's story
In December 2008, David, who is receiving Newstart Allowance advises Centrelink that he is living in a same-sex relationship with Greg (who is not receiving a Centrelink payment). David has no assessable income or assets and so receives the maximum single rate of Newstart Allowance.
After the implementation of new legislation, David and Greg are assessed as a couple for social security purposes. The maximum David is able to receive now is the partnered rate of Newstart Allowance. David must also now provide Centrelink with details of Greg's income and assets. Greg is earning $600 per fortnight and his only assets are his home and superannuation (both not assessable), a half share in another property that has a total value of $800,000, and a car worth $10,000. Greg's income is not enough to affect David's rate of payment. However, social security law presumes that each member of a couple has an equal share of their joint assets, so even though the assets are in Greg's name, David's entitlement is calculated based on their joint assets of $410,000. This exceeds the Newstart Allowance assets test cut-out amount for partnered homeowners, so David's payment is cancelled because of the assets.
The loss of payment may bring about hardship, however it is not in itself a reason for Assets Hardship provisions to be considered. David advises that he and Greg are unable to generate income from the property or sell it as it had been bought with Greg's previous partner, who is still living there. This person has blocked the sale until details of the separation have been agreed. The Centrelink Customer Service Advisor issues the appropriate claim form for assessment of Assets Hardship Provisions. David will be required to itemise all of his and Greg's income and assets, detailing that the property is unrealisable to sell or provide income. Centrelink will request written evidence that the property's value cannot be realised, that Greg's previous partner is not paying rent, and that adequate steps have been taken to try to borrow against the property. David must also notify Centrelink immediately of anything that will change the rate or eligibility for Newstart Allowance.
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Carer Payment and Carer Allowance
Carer Payment and Carer Allowance - Jan and Bettina
Jan has been providing constant care for her partner Bettina for a year, ever since Bettina was in a road accident and became seriously disabled. Jan was granted Carer Allowance but her claim for Carer Payment was rejected as Bettina's assets were over the threshold for the non-customer care receiver income and asset test. The threshold is currently $547,000 and Bettina's assets were $600,000. Bettina was providing financial support to Jan who was not able to qualify for any other Centrelink payment.
Jan and Bettina heard about the social security changes for same-sex couples and they asked Centrelink prior to 1 July if they would benefit in any way. They were told that from 1 July the couple's income and assets would be regarded as combined. This would mean that Bettina's assets would not prevent her from qualifying for a Disability Support Pension as the asset cut out for a homeowner couple is $873,500 (as opposed to $550,500 for a single person). They also learned that if Bettina qualified for a part-rate Disability Support Pension, this would exempt her from the non-customer care receiver income and asset test for Carer Allowance. If Bettina was granted Disability Support Pension, Jan would not be prevented from qualifying for a Carer Payment.
Jan and Bettina declared themselves a couple and on 1 July they claimed Disability Support Pension and Carer Payment. They both met all the other qualification and payability criteria and were each granted a part-rate pension and received a Pension Concession Card. Jan and Bettina have the option of requesting the reissue of their Pensioner Concession Cards without their partner's name displayed.
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Department of Veteran's Affairs Service Pension / Newstart Allowance
Service pension - Roy and Brian's story
Roy, a special rate (Totally and Permanently Incapacitated - T&PI) disability pensioner aged 63, receives a service pension from the Department of Veteran's Affairs and Brian, aged 56, receives Newstart Allowance from Centrelink. Brian claims partner service pension from the Department of Veteran's Affairs (DVA) from 1 July 2009 on the basis of his same-sex relationship with Roy. Brian has already reached the qualifying age for partner service pension (60 years old for males). Brian's Newstart Allowance is cancelled and he is instead granted partner service pension. Roy's service pension is reassessed to the partnered rate.
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Disability Support Pension
Disability Support Pension - Michael and Sandro's story
Michael and Sandro have been living in a same-sex relationship for 3 years. Sandro is employed and earns $60,000 a year (approximately $2,300 a fortnight). Michael is on Disability Support Pension. He receives the maximum rate of payment for a single customer and has no other income. Sandro owns the home they live in and Michael receives Rent Assistance for the rent he pays to Sandro.
Michael contacts Centrelink to declare his relationship with Sandro before July 2009 and provides information about Sandro, including his income and asset details. Michael's Disability Support Pension is reassessed from 1 July 2009, taking into account Sandro's income and assets, and calculating Michael's payment at the partnered rate.As Sandro and Michael's combined income is over $240 a fortnight, Michael will still be able to receive a reduced rate of Disability Support Pension from 1 July 2009. Michael will also be able to keep his Pensioner Concession Card, which will now include Sandro as Michael's partner and he may be able to access concessions because of this. Michael has the option of requesting the reissue of his Pensioner Concession Card without Sandro's name being displayed.
Because Sandro owns the home they live in Michael will no longer qualify for Rent Assistance.
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Disability Support Pension and Newstart Allowance
Disability Support Pension and Newstart Allowance - John and Mark's story
John is in his early 60s and receives Disability Support Pension because of a back injury he received while working in the mining industry. Mark is John's partner and they have been living together for 15 years. Mark is unemployed, receives Newstart Allowance and has been looking for work for the last 12 months. They split their weekly rent of $250 and each receive an amount of Rent Assistance. John receives the maximum non-sharer's rate because he is in receipt of Disability Support Pension and Mark receives the maximum sharer's rate.
John is worried about losing access to Disability Support Pension because of the introduction of legislation to recognise same-sex relationships for Centrelink purposes. John contacts Centrelink in April 2009 to discuss their relationship and what effect this will have on their payments. Using the Centrelink Rate Estimator, staff are able to advise John that, based on the information provided, he would receive a reduced partnered rate of Disability Support Pension and retain his Pensioner Concession Card. Mark will also continue to receive Newstart Allowance (although at the reduced partnered rate) and retain his Health Care Card. Partner details are included on each of their cards. John and Mark have the option of requesting the reissue of their Concession Cards without their partner's name displayed.
Their Rent Assistance will be reassessed and they will receive the maximum partnered rate of Rent Assistance.
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Newstart Allowance
Newstart Allowance - Jason and Andrew's story
Jason and Andrew are in a same-sex de facto relationship. Both Jason and Andrew are paid Newstart Allowance at the maximum rate and occasionally have access to casual employment. They split their weekly rent of $240 and each receive Rent Assistance paid at the maximum sharer's rate.
On 1 July 2009, Andrew advises Centrelink they are in a same-sex de facto relationship. Newstart Allowance payments for both Jason and Andrew are reassessed and paid at the partnered rate. Rent Assistance is reassessed and they now receive the maximum partnered rate of Rent Assistance and this is split equally between them. Jason and Andrew will each retain their Health Care Card, with partner details included on each of their concession cards. Jason and Andrew have the option of requesting the reissue of their Health Care Cards without their partner's name displayed.
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Parenting Payment / Family Assistance
Parenting Payment (Single) - Mary and Sarah's story
Mary and Sarah have been living in a same-sex de facto relationship for 5 years. Mary has a 10-year old child from a previous relationship and Sarah has a 9-year old child from a previous relationship. They look after their own children and have separate childcare arrangements when they do some casual work. Mary and Sarah both receive Parenting Payment (at the single rate) and Family Tax Benefit (FTB) for their children.
On 1 July 2009, Mary and Sarah advise Centrelink they are in a same-sex relationship. As both of Mary and Sarah's children are over 6 years of age and their combined income is below $769 each per fortnight, they will need to transfer to Newstart Allowance. Only 1 of the couple can be considered to be the children's principal carer and have reduced participation requirements to allow for caring responsibilities. When Mary and Sarah contacted Centrelink, staff used the Centrelink Rate Estimator to illustrate what Mary and Sarah's future payments will be.
For Family Tax Benefit purposes, Mary and Sarah could choose to be paid as a blended family as each of them has a Family Tax Benefit child or 1 of them can be paid for both children. The rate of Family Tax Benefit Part A would not change, however Part B which is paid per family, will be based on the income of the lower earner of the 2. Mary and Sarah would each be entitled to a Health Care Card for the whole family.
Depending on the child care service they use, Mary and Sarah may also be eligible for Child Care Benefit, Child Care Tax Rebate and JET Child Care Fee Assistance. Child Care Benefit will be reassessed based on the couple's income and the increased percentage applicable for 2 children in care.
Parenting Payment (Single) - Mike and Steve's story
Mike and Steve have been living in a same-sex de facto relationship for 8 years. Mike and Steve each have a 5-year old child from previous relationships. Steve is employed and earns $75,000 per year (approximately $2,885 per fortnight) and receives some Family Tax Benefit. Mike is in receipt of Parenting Payment (Single) and Family Tax Benefit, and has a Pensioner Concession Card. Steve owns the home they live in and Mike receives Rent Assistance for the rent he pays to Steve.
Mike contacts Centrelink prior to 1 July 2009 to advise he and Steve are living together in a same-sex relationship. Mike's Parenting Payment is reassessed from 1 July 2009, taking into account his partnered status and including Steve's employment income.
Mike is no longer entitled to Parenting Payment, Rent Assistance or a Pensioner Concession Card, as their combined income is over the income limit. Mike and Steve's Family Tax Benefit Part A will be calculated based upon their combined income. Their Family Tax Benefit Part B will be calculated based on Mike's income because he is the lower earner.They can choose to each receive Family Tax Benefit for their own child or the combined Family Tax Benefit to be paid to only 1 of them.
Parenting Payment (Single) and Parenting Payment (Partnered) - Alison and Emily's story
Alison and Emily have been living in a same-sex relationship for 1 year. Alison is a self-employed graphic artist and the income from her business is approximately $21,000 per year (approximately $808 per fortnight). Emily has a 2-year old child and receives Parenting Payment at the single rate and Family Tax Benefit.
On 1 July 2009, Emily contacts Centrelink to advise she and Alison are in a same-sex de facto relationship. Centrelink staff are able to provide Emily with an estimate of her future payments. Emily's Parenting Payment is reassessed as a partnered person and takes into account Alison's income from her business.
The result is Emily will be paid a partial amount of Parenting Payment, receive Family Tax Benefit Part A (based upon her entitlement to Parenting Payment) and Family Tax Benefit Part B (based on her income because she is the lower earner). Emily will no longer be entitled to a Pensioner Concession Card, but will be issued with a Health Care Card which will cover the whole family.
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Pension Bonus Scheme
Pension Bonus Scheme - William & Benjamin's story **
William is 70. He has been registered in the Pension Bonus Scheme for 5 years and is still working and earns $50,000 per year. He is planning to retire soon but hasn't made any decisions about retiring yet. His partner Benjamin is 63, is working full time, earning about $100,000 per year and has no plans to retire in the foreseeable future. William owns his home, expects to have no income other than his Age Pension once he has retired, and his assets are less than $100,000.
William contacts Centrelink in April 2009 to advise he is in a same-sex relationship with Benjamin. He is unsure about his entitlement to a Pension Bonus when his relationship is recognised by Centrelink and doesn't know where to get information about his options. The Centrelink Customer Service Adviser arranges for him to discuss his situation with a Centrelink Financial Information Service (FIS) Officer. William is interviewed by the Financial Information Service Officer who provides him with expert information specific to his situation so he is able to make an informed decision about his plans for the future.
The Financial Information Service Officer also informs him that if he were to cease work and claim Age Pension and his Pension Bonus entitlement before 30 June 2009, Centrelink would assess him as a single person until 1 July 2009. As his individual income and assets are not high enough to reduce his Age Pension, his Age Pension rate would be estimated at $568.10 per fortnight and his Pension Bonus at approximately $34,344.30. From 1 July 2009, Centrelink will consider him to be a member of a couple, and if Benjamin's current level of income continued he would not be entitled to an Age Pension or a Pension Bonus if he were to claim on or after 1 July 2009.
If William decided to continue working and retired after 1 July 2009, he could become a non-accruing member of the Scheme if Benjamin was intending to register in the Scheme when he reached pension age. This means that he could still claim Age Pension and his 5 year Pension Bonus entitlement, based on his and Benjamin's combined income and assets, when Benjamin left the workforce.
Note: ** Some assumptions have been made in this example. It is recommended those persons seeking information about the Pension Bonus Scheme discuss their specific situation with a Financial Information Service Officer, or their own Financial Planner, rather than make decisions as a result of this hypothetical scenario.
Pension Bonus Scheme - Betty and Wilma's story **
Betty and Wilma are both currently working and will reach Age Pension age shortly before July 2009. Betty plans to retire soon, however Wilma, who earns $85,000 per year, intends to keep working 30 hours a week for at least 5 more years.
Betty and Wilma contact Centrelink before July 2009 to advise of their same-sex relationship and find out what services and options are available to them. A Centrelink Customer Service Adviser arranges for them to discuss their situation with a Centrelink Financial Information Service (FIS) Officer. They are interviewed by the Financial Information Service Officer who provides them with expert information specific to their situation, so they are able to make informed decisions about their plans for the future.
They are advised that from 1 July 2009 they will be considered as members of a couple, and their combined income and assets will be assessed to calculate entitlements they each have. They are informed about the Pension Bonus Scheme and Wilma's need to register in the Scheme. Betty is informed that even though she will be retiring, she may be able to also register in the Pension Bonus Scheme and accrue a Bonus because of Wilma's work. Betty is advised that she could claim Age Pension as a single person from when she reached Pension Age until 30 June 2009, however if she does this she will not be entitled to a Pension Bonus payment at a later date. Betty is also advised that because of Wilma's income she would not be entitled to Age Pension from 1 July 2009.
Note: ** Some assumptions have been made in this example. It is recommended those persons seeking information about the Pension Bonus Scheme discuss their specific situation with a Financial Information Service Officer, or their own Financial Planner, rather than make decisions as a result of this hypothetical scenario.
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Separated under one roof
Ex-partners - Separated Under One Roof - Michelle and Sharon's story
Michelle and Sharon lived together as a couple in a same-sex relationship from 2000 until March 2007, when they separated. They have continued to live together at the same address but consider themselves to be only good friends and single.
Neither Michelle or Sharon has commenced a new relationship and they have agreed to continue sharing accommodation indefinitely because it's cheaper to share expenses. Their family and friends no longer think of them as a couple.
Because Michelle and Sharon were living together in a same-sex relationship prior to the legislation changes and they are now single, there is no requirement for Michelle and Sarah to notify Centrelink of their previous relationship. At a future customer review where living arrangements are discussed, it may be identified that a Separated Under One Roof assessment is required to ensure they are receiving the correct rate of payment.
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