Case Studies

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 heard about the Government’s same-sex reforms, they were concerned about the effect this would have on their Age Pension, as well as the confidentiality of the information they provide.

Pat telephoned Centrelink in June 2009 and advised that Dolores was her partner. On 1 July 2009, Centrelink reassessed Pat and Dolores’ payments to the partnered rate of Age Pension and they retained 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.

They contacted Centrelink after hearing about the changes for same-sex couples and to see if they would benefit in any way.

They were advised that from 1 July 2009 the couple’s income and assets would be regarded as combined. This would mean that Joe would now be eligible for part rate Age Pension. Allen and Joe declared themselves as a couple on 1 July 2009 and Joe was granted a part rate Age Pension. Allen's Age Pension rate was reduced however their combined income increased due to Joe now being eligible for a part rate pension.

Other benefits are that they both receive Pensioner Concession Cards, which allows 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 will 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 contacted Centrelink to obtain more information about the effect on their payments as a result of the same-sex reforms. Centrelink provided Ron with an estimate of his future payments from 1 July 2009. Ron and Merv’s payments were recalculated on 1 July 2009 at the partnered rate and taking into account Merv’s superannuation payment.

Merv’s Age Pension was reduced to the partnered rate and Ron’s Newstart Allowance was paid at the partnered rate and reduced slightly because of Merv’s superannuation. Merv retained his Pensioner Concession Card and Ron retained 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 advised Centrelink that he was living in a same-sex relationship with Greg (who is not receiving a Centrelink payment). David has no assessable income or assets and so received 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 Adviser issued 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 $571,500 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 $928,000 (as opposed to $626,000 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 Scott’s story

Michael and Scott have been living in a same-sex relationship for 3 years. Scott is employed and earns $60,000 a year (approximately $2,300 a fortnight). Michael is on Disability Support Pension. Prior to 1 July 2009, Michael received the maximum rate of payment for a single customer and had no other income. Scott owns the home they live in and Michael had been receiving Rent Assistance for the rent he paid to Scott.

Michael contacted Centrelink to declare his relationship with Scott prior to July 2009 and provided information about Scott, including his income and asset details. Michael’s Disability Support Pension was reassessed from 1 July 2009, taking into account Scott's income and assets, and calculating Michael’s payment at the partnered rate. As Scott and Michael’s combined income is over $248 a fortnight, Michael still receives a reduced rate of Disability Support Pension from 1 July 2009. Michael has also kept his Pensioner Concession Card, which now includes Scott 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 Scott’s name being displayed.

Because Scott owns the home they live in, Michael no longer qualifies 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 was worried about losing access to Disability Support Pension because of the introduction of legislation to recognise same-sex relationships for Centrelink purposes. John contacted Centrelink in April 2009 to discuss their relationship and what effect this would have on their payments. Using the Centrelink Rate Estimator, staff were 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 would 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 has been reassessed and they 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 were receiving Rent Assistance paid at the maximum sharer’s rate.

On 1 July 2009, Andrew advised Centrelink they are in a same-sex de facto relationship. Newstart Allowance payments for both Jason and Andrew were reassessed and paid at the partnered rate. Rent Assistance was reassessed and they now receive the maximum partnered rate of Rent Assistance and this is split equally between them. Jason and Andrew 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. Prior to 1 July 2009, Mary and Sarah both received Parenting Payment (at the single rate) and Family Tax Benefit (FTB) for their children.

On 1 July 2009, Mary and Sarah advised 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 $779.17 each per fortnight, they were transferred 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 would 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 does not change, however Part B which is paid per family, is based on the income of the lower earner of the 2. Mary and Sarah are each 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. Prior to 1 July 2009, Mike received Parenting Payment (Single) and Family Tax Benefit, and had a Pensioner Concession Card. Steve owns the home they live in and Mike received Rent Assistance for the rent he paid to Steve.

Mike contacted Centrelink prior to 1 July 2009 to advise he and Steve were living together in a same-sex relationship. Mike’s Parenting Payment was 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 is calculated based upon their combined income. Their Family Tax Benefit Part B is 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 received Parenting Payment at the single rate and Family Tax Benefit.

On 1 July 2009, Emily contacted Centrelink to advise she and Alison are in a same-sex de facto relationship. Centrelink staff provided Emily with an estimate of her future payments. Emily’s Parenting Payment was reassessed as a partnered person and took into account Alison’s income from her business.

The result is Emily is 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 is no longer entitled to a Pensioner Concession Card, but is issued with a Health Care Card which covers the whole family.

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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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More information

For information about other changes due to the same-sex law reforms, refer to Centrelink recognises same-sex relationships from 1 July 2009.