Centrelink Pensions in Thailand are limited by your Australian assets, among other things, writes reader David.
“I am fairly up to date with Australian Centrelink aged pension matters. My intention was simply explain asset and income matters which can be quite complicated for novices”.
Asset and Income information in regards to Australian Pensions: It is my understanding that once you rent out your home in Australia it becomes an asset for the purpose of assessing you payments under Centrelink, that is anytime after you vacate it or rent it out. You can only claim it as asset free if you are living in it yourself, not renting it out??? If you are single and own a home your income asset free threshold is about $257,000 (higher for a married couples) and about $457,000 single with no home. Super is an asset also for Centrelink purposes (not free) but is tax free with ATO .
If you are single and your home has a high value you can get away with it whilst on holidays, (12 month OK? perhaps). Your threshold will go up to about $457.000. If you are game and rent it out that could be fraud if you do not advise Centrelink You are required to advise them of this change of situation, it will affect your pension.
After 12 months if your home is valued more then the threshold and is still empty your pension would be reduced as per the Centrelink formula, if you are single that would be $457,000. If your still living overseas, it is now an asset. Leaving your asset free home empty for 12 months is OK, having a paying tenant is not OK for the purpose of Centrelink, you have to declare the income, the value of the home will then be an asset.
After being absent from Australia for more then 12 months your vacant house will become an asset for Centrelink purposes regardless, If the house is worth a million dollars well sorry there goes your pension yes the lot! You well above the current threshold, you are not living in it. If you house is rented out anytime it is an asset.
I live in Thailand mostly, come home on/off to overcome any of theses problems. That has many great benefits. Medical for one etc.etc.