- Income from account-based pensions will be deemed for aged pension purposes.
- If you decide to refresh your pension you need to complete the paper work by 1 January 2015.
- In most cases a death benefit nomination is not the equivalent of a nominated reversionary.
New Year 2015 will see two big changes made to government benefits available to retirees.
Both changes involve grandfathering, which means there is a before and after situation. The two changes are:
- Aged pension – Account based pensions (ABPs) that commence after 2014 will be deemed; most pensions that commence before 2015 will retain an income test concession – this change has been legislated.
- Commonwealth Seniors Health Care Card (CSHC) – ABPs that commence after 2014 will be deemed; income paid from many pensions that commence before 2015 will remain exempt from the CSHC income test – this change hasn’t been legislated.
Needless to say, there is a lot of interest in how these changes might impact a variety of situations. Most people simply want to know if they should do anything before 1 January next year.