- Switzer Report - https://switzersuperreport.com.au -

Why you need to start a pension before the end of the year

The deeming of pension income for both the Aged Pension and Commonwealth Seniors Health Card (CSHC) holders is big news. Although these changes are not yet law, for many it might be best to assume they will become law.

What are they?

CSHC recipients need to pass an income test. This test counts taxable income, reportable fringe benefits, salary sacrifice super contributions and personal super contributions claimed as a tax deduction and net investment losses.

From 20 September 2014, singles can earn up to $51,500 per annum and a couple $82,400 per annum. (These income thresholds have now been indexed because of legislation that recently went through Parliament.) Special rules apply if you have dependant children or a couple who lives apart due to illness.