Grey nomads and Santa Claus:
National Media Release
Friday, 11 August 2006
Centrelink General Manager, Hank Jongen, said Age Pensioners have a range
of choices if they decide to take on short-term or one-off employment opportunities
in retirement.
"We often receive calls from Age Pensioners who have been asked to play
Santa Claus or work at their annual Show Day, who are worried about taking
on the opportunity in case they lose their entitlement," Mr Jongen said.
"It's very important Age Pensioners who earn income talk to Centrelink,
but it doesn't mean they will be disadvantaged by working.
"Generally speaking, a single pensioner can receive $128 a fortnight before
their pension is affected at all, and a couple can receive $228 a fortnight.
After this, the pension reduces by a set rate for every dollar of income above
these amounts.
"In some circumstances, an Age Pensioner's total employment income from
a short-term job can be averaged over 12 months or else annualised just for
the period of employment. Centrelink staff will discuss these options with
the customer to work out which way is best.
"For example, if a customer worked for five weeks doing the Census collection
but has no other employment income for the year, the amount earned for the
five weeks could then be treated as annual income. If the earnings were not
very high, the customer's Age Pension might not be affected at all."
Mr Jongen said 'Grey Nomads' – Age Pensioners who were travelling around
Australia – often see opportunities to take advantage of these flexible
rules to enhance their holiday.
"If a customer has employment income that is variable to predict, Centrelink
may use an average amount projected over 12 months," Mr Jongen explained.
"If the period of employment is short but the income earnings are generous,
a customer can decide to suspend their Age Pension altogether. It's possible
to suspend a payment for up to three months, and then restore it when employment
ends without having to restart the whole pension claim process.
"This is especially useful for seasonal work that retirees might pick
up while travelling around regional and rural Australia.
"The Income Test includes all income, not just income from earnings. It's
important you understand how any income earned from superannuation, deemed
income from financial investments, foreign pensions and income from real estate
might also affect your payment."
Mr Jongen urged Age Pensioners to discuss their individual circumstances with
Centrelink if in doubt by calling 13 2300 or by visiting www.centrelink.gov.au
For more information, telephone the relevant Centrelink Media Contact.
