If you are eligible for a Centrelink payment, it will most likely be through a ‘pension’. A pension is a long-term income support payment. There are pensions for age and disability, payments for families and support for carers.

Many clients are able to claim a pension – there are just different rules about how much each person can receive, and how long they have to wait. Basically, it depends on the:

  • compensation you received
  • type of Centrelink payment you are applying for.

The amount of pension or allowance you receive is different for everyone. Centrelink will base this on your personal circumstances, through the ‘income and assets tests’.

The income test looks at how much you earn. Centrelink only pays support payments to people if their income is below a certain level. This is called ‘allowable income’.

The assets test looks at property or possessions that you own, either in full or just a part of. These are your assets.

To complete an income and assets test, Centrelink may need to know, or will take into account, the:

  • ‘asset value’ of your funds held in Court (how much your funds are worth)
  • ‘income earnt’ (how much your funds earn and investment returns).

The amount you receive from Centrelink depends on your personal circumstances, your income and assets. Once Centrelink have details of your funds held in Court, they will decide which test you should be paid under.

Note: If you have bought a property or house that you live in from your funds held in Court, this is not considered an asset by Centrelink.

Other things to consider

If you are a member of a couple, your pension is calculated on your combined income and assets. It does not matter which one of you actually receives the income or owns the assets.

If you are blind, the income and assets test will not affect your Centrelink payments – but you still have to tell them about your funds held in Court.