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View Full Version : Getting Centrelink when you have property?


Georges
07-06-2009, 12:40 AM
I heard from a friend that she knows a friend who is on Centrelink because he lost his job, yet he still has property (not sure if it is his PPOR or is it an IP).

I thought that if u go to Centrelink, the first thing they will do is to make sure you dont have any assets?

Fourex
07-06-2009, 07:17 AM
With Centrelink your PPOR is exempt. So yep you can own and live in a multi million dollar palace and still get a payment.

Also have known someone who owns a few houses and his family currently rent.

He is able to claim rent assistance with their family payment (subject to income levels).

Rolf Latham
07-06-2009, 08:27 AM
I suppose you cant break the front door off and take it to buy a loaf of toast and 2 litres of milk

ta
rolf

INVSTOR
07-06-2009, 09:09 AM
PPOR is exempt but he would have to claim any rent from IP as income. I was told by centrelink years ago if I was earning $400 wk rent and my holding costs of property were $400/wk centrelink would take rent into account as income but disregard my expenses. Might have to take the front door off after all.

travelbug
07-06-2009, 09:26 AM
I suppose you cant break the front door off and take it to buy a loaf of toast and 2 litres of milk

ta
rolf

That reminds me of when I used to do volunteer work (meals on wheels) in Gladesville (Sydney). There were many old people in these huge houses and they had no money and the houses needed work as they were falling apart. Sad really. But they wouldn't move as they had been there all their lives.

Many had kids that never checked on them. I bet they did when it came to sell the house though.

Collector
07-06-2009, 11:15 AM
Rudd recently changed part of the criteria in regards to receiving centrelink.

PPOR is exempt

IP is not

Max $10,000 in savings (previously was $1000)

THEHEATH
07-06-2009, 01:15 PM
Maybe he has the properties owned through a trust?? Not sure how/if that would affect it.

Georges
07-06-2009, 07:16 PM
how about me?
Can I take centrelink?

I have:
-no job now (got retrenched from $100k job 2 months ago)
-1 IP in my name ($120k value, loan $100,000, rent only $140 pw)
-1 IP in hybrid trust ($205,000 value, loan $191,000, rent $280pw)
-only few hundred $ of savings in cash
-share portfolio about $15,000
-no rent to pay, live in parents house

-have to pay for 2 full loan portfolio each month, total $2000 p/m.
-have some credit cards to pay each month

Do U think I can still get Centrelink?

Will they make me sell the IP?

RumpledElf
07-06-2009, 09:23 PM
I was told by centrelink years ago if I was earning $400 wk rent and my holding costs of property were $400/wk centrelink would take rent into account as income but disregard my expenses.
This is still the case, it might be changing next financial year but I'm very sketchy on the details - if so, it might be worth us renting out our PPoR rather than selling it ($25k owing, possible $150pw rent).

how about me?
Can I take centrelink?
Very, very likely. They make you wait based on liquid assets, they'll deem the share portfolio and your IP value is under their 'rich' cutoff (about $250k I think). You'll get a part payment I'd imagine depending on what they deem your shares to be earning you - you can make up to ~$30pw before they cut you down.

I currently get a phone call from centerlink every week or two asking if I've sold my house yet, they want a copy of the settlement statement so they can wipe out my partner's parenting payment because we have money. Since most of the settlement money is already pegged for the subdivision and will be spent within 24 hours of getting it anyway I'll just be getting the conveyancer to send the money direct to the surveyor and skipping the centerlink pain.

Gordon Gekko
08-06-2009, 11:23 AM
With Centrelink your PPOR is exempt. So yep you can own and live in a multi million dollar palace and still get a payment.

Also have known someone who owns a few houses and his family currently rent.

He is able to claim rent assistance with their family payment (subject to income levels).

The first 5 acres of your PPOR is excempt, any acreage above 5 is an assett. I live on 6 acres, the 6th acre is an assett in centrelinks eyes :(

GG

DonG
09-06-2009, 09:05 AM
[QUOTE=Fourex;554133]With Centrelink your PPOR is exempt. So yep you can own and live in a multi million dollar palace and still get a payment.

[QUOTE=Rolf Latham;554144]I suppose you cant break the front door off and take it to buy a loaf of toast and 2 litres of milk


Could you LOE of your multimillion dollar palace and still get a payment?

letiha
10-06-2009, 10:47 AM
I own 4 properties and I qualify for Parenting payment. They minus your mortgage from the value so its only the equity that gets counted, same with rent, if the interest and expenses are less than the rent it does not get counted.

I would worry more about liquid assessts such as shares.

Georges
10-06-2009, 04:06 PM
if i get centrelink now will it affect whether i can claim my $900+ bucks that I have not claimed yet?

Bill.L
10-06-2009, 11:13 PM
Hi Georges,

I think you will find that the $900 Govt handout is based on the 07-08 tax year, not on what is happening to you now. If your assessable income was over $100k last financial year, then you miss out.

Sorry to hear you lost your job.

bye

Ausprop
12-06-2009, 12:47 AM
[QUOTE=Fourex;554133]With Centrelink your PPOR is exempt. So yep you can own and live in a multi million dollar palace and still get a payment.

[QUOTE=Rolf Latham;554144]I suppose you cant break the front door off and take it to buy a loaf of toast and 2 litres of milk


Could you LOE of your multimillion dollar palace and still get a payment?

who will lend you money on the back of your centrelink income? particularly when your equity is going backwards.

reverse mortgage? Supercharge your reverse mortgage - leverage up a falling asset. ugly stuff

Rolf Latham
12-06-2009, 01:22 AM
Hiya Aus

I think u have misquoted me here

Centrelink and LOE is not a good combo with lenders


ta
rolf