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Spr q5

Discussion in 'Financial Planning Study Group' started by burnseed, 29th Oct, 2010.

  1. burnseed

    burnseed Member

    27th Apr, 2010
    Brisbane, Qld
    Hi all

    What a forum this is.

    Im after some help with Question 5 of Super.

    Im finding difficult to know how Richard and Bern should be treated.

    Should I be combining their income and assets for the tests and then dividing by 2?

    I was wondering if there is a good online calculator where I could feed this information into.

    Any thoughts greatly appreciated.
  2. serge g

    serge g Active Member

    16th Oct, 2009
    Hi there,

    The first question you need to ask is - are they a couple (within the definition of a couple)? If so, then you need to apply the couples rates and formulas, which generally means combining income and assets. In this case I think it's pretty safe to say that they are a couple for centrelink purposes, but you need to satisfy yourself that this is the case, so check, and include your reasoning in your answer.

    The second question is - are they each eligible for any kind of payment, and if so which one? This is determined by applying the eligibility tests to their individual situations.

    Thirdly, based on their relationship situation and eligibility as determined above, how much do they each get? Apply the corresponding rates and thresholds to the income and assets they have. You should be on the right track if you've answered those threshold questions correctly.

    Be careful of deeming when doing the income test - make sure you correctly classify all the assets as either financial or non-financial and add the deemed income from the financial ones.

    There are no tricks to this situation - everything can be figured out by referring back to the notes.