FIN2106 Lecture Notes - Lecture 9: Average Weekly Earnings, Centrelink, Full Rate
Module 9 – FIN2106
-Social security benefits
oIn Australia, Centrelink administers social security payments to eligible persons, as
either pensions or allowances
oPensions are generally paid for long term needs while allowances are paid to
alleviate short-term situations
oBenefits can be categorised into:
Payments and benefits for families with children
Help in retirement
Disability, sickness and carer assistance
Help while undertaking study
Assistance to those who are unemployed
Special benefits
oThe focus of this module is on benefits common to retirees and those who are
approaching retirement which is the Age Pension.
-Age pension
oTo help meet the basic living expenses of older people
oCentrelink publishes regularly the full rate of age pension that is benchmarked at
around a quarter of male total average weekly earnings.
oResidency requirements:
Australian resident for total of at least 10 years with at least 5 of the years
in one continuous period
Must be in Australia when claimed
oQualifying age for males is 65 years.
oGraduated qualifying age for females depending on birthday but will eventually
be the same as for males.
oThe government is gradually increasing the qualifying age for both male and
female.
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Document Summary
Special benefits: the focus of this module is on benefits common to retirees and those who are approaching retirement which is the age pension. Age pension: to help meet the basic living expenses of older people, centrelink publishes regularly the full rate of age pension that is benchmarked at around a quarter of male total average weekly earnings, residency requirements: Australian resident for total of at least 10 years with at least 5 of the years in one continuous period. Couple . 80 each per fortnight: actual pension determined by means testing. Assets and income are assessed against thresholds and the full pensions are reduced accordingly. The test which produces the lower pension entitlement is the applicable test: new rates and thresholds are published every quarter. All other items of value: exempt assets: House and surrounding land up to 2 hectares. Gifted assets less than ,000 per year or ,000 over five years.
