Q Do you know how the Senior Supplement payment is calculated by Centrelink? Mine suddenly appeared in my bank account a couple of years go.  (After submitting a pension application and being knocked back). Perhaps it was compensation for rejection?

A The Seniors Supplement is a quarterly payment made to all Commonwealth Seniors Health Card holders or Department of Veterans’ Affairs Gold Card holders to assist senior Australians to pay regular large expenses such as utilities and motor vehicle registration.

The Seniors Supplement payment rate is:

  • $842.40 a year if you are single
  • $643.40 a year each if you are partnered

The supplement is paid each quarter, shortly after 20 March, 20 June, 20 September, and 20 December. The supplement is non taxable.

To qualify for the Commonwealth Seniors Health Card you must be an Australian Resident, reached Pension Age and have income as a single of less than $50,000 or $80,000 as a couple combined.  There is no assets test.  You would have received the supplement because you qualified for the Seniors Health Card despite failing to be eligible to receive the Age Pension.

Q As a married couple aged 74 both .We are drawing $30000 each a year from our SMSF.  It has been in the pension phase for about 10 years.We do not pay tax on this income.  Could we earn $50000 between us from another source and still pay no tax or would our SMSF pension count as income.

 

A Income received from Allocated Pension is tax free and is not counted for Senior Age Tax Offset (SATO) purposes.  To be eligible to qualify for SATO you must be of Age Pension age, receiving or be eligible to receive an Age Pension and earn less than $53,360 income from other sources.  If you do not qualify for SATO, income other than Allocated Pension income will be assessed under the usual personal income tax rates.