Personal circumstances at Centrelink
Australian Social Security ensures that citizens have the financial resources for at least a frugal minimal standard of living when they cannot earn an income from work.
The minimum income required for a very modest lifestyle is different if you live alone rather than share a home. Thus the Australian community expects that a couple living together would share their resources.
The Age Pension payment rates and means testing arrangements are different for ‘members of a couple’ and ‘single’ people. ‘Homeowners’ and ‘non-homeowners’ also have different means test allowances. But who is a ‘single’ at Centrelink and who is a member of a ‘couple at Centrelink’
Couple at Centrelink
Any two adults who share domestic arrangements and present socially as a ‘couple’ could be treated as a ‘couple at Centrelink’.
Thus Joe and Mary who moved into their current home as soon as they were married in 1950, are a ‘couple at Centrelink’. Joe and Mary jointly own their home and operate a joint bank account; they are happy to be recognized as a couple.
Less happy about being treated as a ‘couple at Centrelink’ are Kim and Lesley. Kim lived alone in a large apartment whereas friend Lesley struggled to afford the rent for a tiny flat. Kim invited Lesley to stay short term. They share household bills and are often seen together at cultural events and generally around the artists’ social hubs.
Two people who are in a ‘marriage like arrangement’ or de facto relationship, can be treated as a ‘couple at Centrelink’ from the date that they start sharing accommodation. Their ‘couple at Centrelink’ status ends immediately Centrelink is notified that one had moved out permanently.
You do not need a documented ‘marriage’ or ‘civil partnership’ to be treated as a ‘couple at Centrelink’. Centrelink expects its clients to report their ‘personal circumstances’ honestly. But as guardian of taxpayer funds, Centrelink is alert to the potential for incorrect records resulting in benefit over-payments.
The big government data matching systems are helped along by interested ‘friends’ and neighbours. Centrelink might contact you if you are flagged as possibly having a change in living arrangements that you had not reported.
Couple separated by illness at Centrelink
If one or both members of a couple at Centrelink need residential aged care then Centrelink could treat them as a ‘couple separated by illness’.
Sue and Sam had been living together for decades. When Sam became too frail to be cared for at home he moved into residential aged care. Sue stayed on in the family home that she and Sam jointly owned. Sam and Sue then became a ‘couple separated by illness’. They still consider themselves as a couple even though they need to live apart and Sue still manages their combined finances.
Bill and Betty are also a ‘couple separated by illness’ whilst Bill does his time in the big house.
Single at Centrelink
A single person who lives alone in a self-contained residence could be a single client at Centrelink.
But if she is still in a financial relationship with her former domestic partner she might still be a ‘member of a couple at Centrelink’.
The Social Security Act ensures that two people who share domestic arrangements cannot be treated as a ‘couple’ if one of them is an ancestor or a descendant of the other or a brother, sister, half‑brother or half‑sister of the other person. At Centrelink these are prohibited relationships for partners.
Thus two sisters who share a home could each be single at Centrelink. Whilst they might share domestic arrangements they would not present socially, or be accepted at Centrelink, as a couple. Similarly a widow and her intellectually challenged son might share a home and each be treated as a single person at Centrelink as they are in a ‘probhibited relationship’ for a couple status at Centrelink.
Separated under one roof
Centrelink are aware that not every couple can split their assets and go their own ways immediately their personal relationship ends. Maintaining a combined household in a jointly owned property might enable both parties to avoid being homeless and minimise disruption to their children’s schooling.
Centrelink have a detailed form for customers to demonstrate how they are ‘separated under one roof’. Once Centrelink accept a genuine ‘separated under one roof’ situation then each party could be treated as a ‘single’ at Centrelink.
Help to understand how your situation fits in the Age Pension system.
Christine at Financial Care Services writes this Age Pension Guide. She can help you to understand your Age Pension situation.
Ask Christine to help you navigate your Age Pension challenge.
Contact Christine at Christine@financialcareservices.com.au or call 03 9808 0338 to book a consultation.
Christine at Financial Care Services is experienced with Pension Applications and the many Centrelink financial means tests.
Financial Care Services helps seniors with Centrelink Pension issues. Christine at Financial Care Services could help you check if you are eligible for an Age Pension.
An estimate of your potential Age Pension amount before you apply could spare you a rejection letter from Centrelink.
Financial Care Services offers ‘personal financial factual information’ consultations to help you check your asset and income position against the Centrelink Pension means tests. Christine is also able to assist with filling in your Centrelink forms ready for you to sign. She could accompany you to a Centrelink office to lodge your Pension claim form and show your proof of identity documents.
Financial Care Services charges hourly rate fees for ‘personal financial factual information’ consultations, assistance with personal data collation, completing Centrelink forms and attendance at a Centrelink office with you.
Email Christine@financialcareservices.com.au now for the Financial Care Services Client Services Guide and Financial Care Services Age Pension Personal Data Checklist.
Disclaimer This Age Pension Guide is based on our understanding of the current Social Security provisions. Your claim for a Social Security Pension will be based on your personal situation as documented to Centrelink and the Social Security legislation and Regulations in force at that date.
Updated 24 May 2018
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