A Centrelink Schedule is generally a one page document that is used to inform Centrelink of the various components relating to your superannuation income stream.
This enables them to asses the amount of the income stream that should be assessed for ‘income test’ and ‘asset test’ purposes to calculate your Age Pension entitlements.
Centrelink assessment of account based pension income streams commenced after 1 January 2015 are easily assessed by Centrelink, as the the capital value is fully assessable and this same amount is deemed to earn an income based on the Centrelink deeming provisions.
However, assessment is not always so simple for income streams commenced prior to 1 January 2015 (where the recipient had a Centrelink entitlement at such time) or for certain other income streams, such as Annuities.
See an example of a Centrelink Schedule here
What is included in a Centrelink Schedule?
A Centrelink Schedule includes all relevant information of the income stream, including but not limited to:
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– Super Fund SPIN
– Type of Income Stream
– Purchase Date
– Purchase Amount
– Current Value
– Current Income Payments
– Frequency of Income Payments
Where can I get a Centrelink Schedule?
Your income stream provider is generally able to provide you with a Centrelink Schedule and most Schedules will not exceed one page.
You may be able to login online to your income stream account and print one off. If you are unable to do this, you should contact your income stream provider and they will send one out to you.
The deductible amount for a defined benefit pension is based on the tax free amount up to a cap of 10% for most defined benefit pensions. Some exclusions apply to defence and military defined benefit pensions. A schedule or statement will detail the tax free component. Read more here.
What if I have a SMSF
If you have a SMSF you should consult the administrator of your SMSF (such as an accountant/adviser) and request a Centrelink Schedule. They may not have a document formatted specifically in the way of a traditional Centrelink Schedule; however they will be able to produce all of the necessary information. Be mindful that this may take time (and a cost) to produce, as an up to date SMSF balance and member balances will need to be determined.
How do Centrelink use a Centrelink Schedule?
Apart from the obvious of recording your account balance, Centrelink use the purchase date, purchase price, commutations and relevant number to figure out the Centrelink Deductible Amount for income streams commenced prior to 1 January 2015.
The Deductible Amount is the amount of income you receive each year from your income stream that is not assessed for Centrelink purposes. Click here for a calculator to figure out your Deductible Amount.