Ask the Expert: Start with your fund for super advice
Question 1
I’m 64, single, don’t own a home. I have about $520,000 in super. I will retire in three years. Should I be seeing a financial adviser now, as I really know nothing about super. Only that I’ve got it!
Let’s be positive: At least you know you have super, and you know your rough balance. You are the exact type of person that superannuation funds should be helping.
From July 1, 2022, superannuation funds were required to have a “retirement income strategy” that identifies the retirement needs of their members and to develop a plan to meet those needs.
Each super fund should have this published on its website. In short, this often involves providing a combination of help, guidance and advice to their members.
As a starting point, contact your fund to see what it can offer. You will already be paying a membership fee to your fund, so you may as well take advantage of all the services that it offers.
If you have more complex financial needs, the next step would be to engage in seeing a financial adviser.
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Question 2
My daughter and I are on disability/carer pensions and I own our home. My daughter has no assets. If pooled we have enough in savings to purchase a small city unit that could be used as a rental, but I fear that will throw our existence into disarray as far as our pensions go. We are the most wealthy demographic, and the government is struggling to meet housing needs. Would this not solve a major problem to allow us a small asset holding?
The Carer Payment and Disability Pension are assessed by Centrelink in the same way. That is, it provides the same level of payment and has the same level of income and assets test applied. And as an aside, the age pension is also treated the same way as these two payments.
The allowable level of assets you can hold are shown in the below table (as at January 2025)
Source: Services Australia (January 2025)
For example, if you are single and own your own home, you can have $314,000 in other assets and still get the full payment. You can have up to $695,500 and still receive a part payment. For non-homeowners, like your daughter, the figures are $566,000 and $947,500 respectively.
Whether your assets are held in a bank account, shares or an investment property, they are assessed as current market value. So, I’m not sure what you mean when you say your pensions will go into disarray as you will still have the same level of assets. Note that super is not counted until you reach age 67.
It’s worth pointing out that most people who receive the carer’s payment are also eligible for a carer’s allowance. If you are not already receiving that payment, you should investigate.
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Also, be careful if purchasing assets jointly with your daughter if you are putting all the money in, as opposed to nothing being contributed by your daughter – Centrelink gifting rules may apply.
Given you and your daughter are receiving different payments and have questions, I suggest contacting a financial information services officer at Human Services. They can help you:
- make informed financial decisions
- understand the results of your decisions in the short and long term
- prepare for retirement, even while you’re still working
- take control of your finances to increase lifestyle choices
Question 3
If my parents’ house or unit was purchased after 1985, when the sole parent passes and I inherit the property, what capital gains do I need to pay? Current value is around $450,000. Purchase price was, I think, about $100,000. What if I’m already on a pension?
Capital gains tax is not triggered by the death of an individual or the passing of an asset from the deceased to their legal personal representative or beneficiary. Generally, CGT is not payable until the beneficiary disposes of the asset.
You will not be required to pay CGT if you dispose of the home within two years, or indefinitely if you decide to live in it as your main residence.
From a Centrelink perspective, though, this may have an impact on your age pension (depending on the total value of your assets), as the value of the home will be counted as an asset. This is still the case even if you waive your right to the asset or direct the executor to distribute funds to a third party, as deprivation is then applied.
Craig Sankey is a licensed financial adviser and head of Technical Services and Advice Enablement at Industry Fund Services.
Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.
Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.
