Australian Government                                Payments & ServicesFinancial Information Service
Who we are...     “Accessible   information for   all Australians”Free, confidential service,available to all  We speciali...
What we do... Information about investment options   • Investment types and strategies   • Advantages and disadvantages   ...
But, we do not...Advise on or recommend any particular:          “Financial • Products             Information… • Provider...
Our service to you              • Financial Seminars              • Phone              • Personal                consultat...
Today’s Presentation• Looking for Work• Australian Government Payments• Waiting Periods• Income and Assets• Rates• Concess...
DisclaimerThe information in this presentation is intended as a guide only. TheDepartment of Human Services (DHS) cannot w...
Your Situation...                  Planning to Retiring            Study      DisabledLooking for                     Rais...
Looking for Work  Under 22 yrs old   - Youth Allowance  Over 22 yrs old   - Newstart• Unemployed or working part-time• Cap...
Claiming a Payment132 850 or humanservices.gov.auIntent to Claim • download claim forms (if required)Rapid Connect to Job ...
Employment Pathway Plans• Those of workforce age who are able to  work are expected to seek paid work• Training activities...
Other Payment Types
Planning to Study                    Under 25 yrs old                      • Youth Allowance                    Over 25 yr...
People with ChildrenParenting Payment*     •       if partnered         •     dependent child under 6     •       if singl...
Permanently Disabled            Disability Support Pension              •   over 16 yrs old              •   under Age Pen...
Caring for SomeoneCarer Payment•   providing constant care to    someone with a severe    disability or medical    conditi...
Retired           Age Pension             • Men 65 years             • Women 63½             • In Australia > 10 years2009...
Couples• Eligibility depends on individual situation  • (eg. Newstart / Age Pension)• Amount paid depends on combined inco...
Waiting PeriodsTypes                             Applies to ...Compensation Preclusions          All pensions/ allowancesS...
Seasonal Work PreclusionApplies to  •   Seasonal work  •   Contract or sub-contract work  •   Casual or intermittent workW...
Income Maintenance Period• Termination payments treated as income for  the duration of the period they represent• Includes...
Income Maintenance Period                    George will receive 3                    weeks annual leave and a            ...
Liquid Assets Waiting PeriodSingleOne week for every $500 above $2,500CouplesOne week for every $1,000 above $5000•Maximum...
Liquid Assets...Include•  Cash•  Money in bank, building   society and credit union   accounts•  Term deposits, shares, ma...
Waiting PeriodsLiquid Assets: 13 weeks                                    Payment                                   commen...
Income andAssets
Assets include...• Motor vehicles, boats, caravans etc• Household contents and personal effects• Bank accounts, investment...
Valuing Assets• Net market value• Motor vehicles, household contents etc •   Your estimate• Real estate •   Current market...
Asset DO NOT include...•       Principal home and up to 2ha of        surrounding land on same title•       Funeral bonds,...
Asset Test Thresholds                                  Threshold*      Cut-out point               Homeowner          $192...
Income includes...       •       Gross earnings from employment           •    Including salary sacrificed income       • ...
DeemingAll financial investments are aggregated (cash, shares, bank accounts, investments, loans)Single • first $45,400 is...
Deeming - ExampleBrian is single and has the following investments: Bank account $ 4,473 @ 1%$     44 pa Term deposit $ 72...
Allowance Rates• Single maximum rate is $489.70 pf provided  assessed income is below $62pf• Couples maximum rate is $442....
Pension RatesSingle•   Maximum Rate is $755.50pf•   Income affects rate if above $152pf•   No entitlement at $1,663.00pf (...
Update your details with us...•   Human Services does not know if your income or    assets change• Periodically update you...
Family Tax Benefit                 • Dependent children or                   students                 • Paid to the parent...
Family Tax BenefitBased on "adjusted taxable income"  •   Estimate for current financial year  •   Reconciled against inco...
Family Tax Benefit - EstimatesRevise estimate at any time• (eg as soon as you are aware of future redundancy)Redundancy an...
Family Tax Benefit - Estimates• Redundancy and leave payments• Revise current estimate• May need to revise again as change...
Concessions• Health Care Card •   Allowances •   Low income                  Redundancy payment is                  averag...
Concessions• Pensioner  Concession  Card• Commonwealth  Seniors Health  Card• State Seniors  Cards
Other Issues• Child Support / Maintenance  •   Payroll deductions  •   Change in income  •   Contact CSA on 131 272• Depen...
Contacting us Employment Services     132 850 Disability and Carers   132 717 Retirement              132 300 Family Assis...
Online ServicesTelephone or web self serviceRegisterCheck your details• View income and assets• Payment details• Make clai...
FIS SeminarsFIS presents seminars which may interestyou    Topics include:    •Investing with Safety    •Creating Wealth  ...
GEERS              General Employee       Entitlements and Redundancy                  SchemeTo assist employees who are  ...
Australian Government Payments & Services   01 july 2012
Australian Government Payments & Services   01 july 2012
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Australian Government Payments & Services 01 july 2012

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Presentation detailing the payments and services available via the Australian Government. Including Centrelink benefits and pensions.

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Australian Government Payments & Services 01 july 2012

  1. 1. Australian Government Payments & ServicesFinancial Information Service
  2. 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. 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. 4. But, we do not...Advise on or recommend any particular: “Financial • Products Information… • Providers not FinancialTell you what to do with Advice” your money • That decision is yoursAssess pensions and allowances
  5. 5. Our service to you • Financial Seminars • Phone • Personal consultations132 300 orhumanservices.gov.au/fis
  6. 6. Today’s Presentation• Looking for Work• Australian Government Payments• Waiting Periods• Income and Assets• Rates• Concessions
  7. 7. DisclaimerThe information in this presentation is intended as a guide only. TheDepartment of Human Services (DHS) cannot warrant that it is complete,accurate or free from faults.This presentation is current at 01 July 2012DHS recommends that persons refer to Human Services Online(www.humanservices.gov.au), DHS telephony or Service Centres, to fullyenquire about income support payments and or services.© Commonwealth of Australia 2012This work is copyright. Apart from any use as permitted under the CopyrightAct 1968, no part may be reproduced by any process without prior writtenpermission from the Commonwealth. Requests and inquiries concerningreproduction and rights should be addressed to the CommonwealthCopyright Administration, Attorney General’s Department, National Circuit,Barton ACT 2600 or posted at http://www.ag.gov.au/cca
  8. 8. Your Situation... Planning to Retiring Study DisabledLooking for Raising Work Caring for Children Someone
  9. 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. 10. Claiming a Payment132 850 or humanservices.gov.auIntent to Claim • download claim forms (if required)Rapid Connect to Job Services Australia • interview with employment service provider
  11. 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
  12. 12. Other Payment Types
  13. 13. Planning to Study Under 25 yrs old • Youth Allowance Over 25 yrs old • Austudy Abstudy
  14. 14. People with ChildrenParenting Payment* • if partnered • dependent child under 6 • if single • dependent child under 8Family 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. 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. 16. Caring for SomeoneCarer Payment• providing constant care to someone with a severe disability or medical condition.Carer Allowance may also be payable• not means tested
  17. 17. Retired Age Pension • Men 65 years • Women 63½ • In Australia > 10 years2009 Federal Budget : from 1 July 2017 Age Pension age will progressively raise to 67 years
  18. 18. Couples• Eligibility depends on individual situation • (eg. Newstart / Age Pension)• Amount paid depends on combined income and assets• Includes Same-Sex couples living togetherExamples• partner working - income may preclude entitlement• neither working - usually both claim Newstart• child(ren) under 6 - Newstart / Parenting Payment
  19. 19. Waiting PeriodsTypes Applies to ...Compensation Preclusions All pensions/ allowancesSeasonal Work Preclusion Period Except Age PensionIncome Maintenance Period Except Age & CarersOne Week Waiting Period Allowances onlyLiquid Assets Waiting Period Allowances only
  20. 20. Seasonal Work PreclusionApplies to • Seasonal work • Contract or sub-contract work • Casual or intermittent workWhere earnings were above AWOTE • Singles - $1,322.60 pw • Couples - $2,665.20 pw
  21. 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. 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, butbefore doing so he needs to set aside enough to cover his regular living expenses for at least 23 weeks
  23. 23. Liquid Assets Waiting PeriodSingleOne week for every $500 above $2,500CouplesOne week for every $1,000 above $5000•Maximum waiting period is 13 weeks•Starts from date of unemployment,sickness or study
  24. 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 employerLiquid Assets do not includesuperannuation
  25. 25. Waiting PeriodsLiquid Assets: 13 weeks Payment commences IMP (for example: 23 weeks) Note - Age Pension and Carer Payment are not subject to these waiting periods.
  26. 26. Income andAssets
  27. 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. 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. 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 Gills name is notincluded when assessing Pauls Age Pension
  30. 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 $1,172,000Assets above threshold • Allowances: no entitlement • Pensions: pension reduces $1.50 per fortnight per $1,000* Thresholds are indexed annually on 1 July
  31. 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. 32. DeemingAll 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. 33. Deeming - ExampleBrian 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)Brians 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. 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. 35. Pension RatesSingle• 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. 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. 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. 38. Family Tax BenefitBased on "adjusted taxable income" • Estimate for current financial year • Reconciled against income tax returnsWhile receiving pension or allowance • Income test free - maximum rate paid • Maintenance income test only
  39. 39. Family Tax Benefit - EstimatesRevise 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. 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 orhumanservices.gov.au
  41. 41. Concessions• Health Care Card • Allowances • Low income Redundancy payment is averaged and included as income over the 12 months following payment
  42. 42. Concessions• Pensioner Concession Card• Commonwealth Seniors Health Card• State Seniors Cards
  43. 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. 44. Contacting us Employment Services 132 850 Disability and Carers 132 717 Retirement 132 300 Family Assistance 136 150 Multilingual Service 131 202
  45. 45. Online ServicesTelephone or web self serviceRegisterCheck your details• View income and assets• Payment details• Make claims online• Request cards/statements• Many others humanservices.gov.au
  46. 46. FIS SeminarsFIS presents seminars which may interestyou Topics include: •Investing with Safety •Creating Wealth •Superannuation •Protecting Your Assets For further information, check out: humanservices.gov.au/fis then click on ‘Seminars’
  47. 47. GEERS General Employee Entitlements and Redundancy SchemeTo 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

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