The planning process can identify opportunities to maximise Centrelink entitlements for some individuals. To be able to do this, knowledge of the Centrelink income and assets thresholds and an understanding of what income and assets are assessed by Centrelink is required.

Assets held in accumulation in the superannuation environment are exempt from testing for those under Age Pension age. On occasion, maximising the level of asset held in accumulation can prove to be beneficial.

An analysis of your entire financial situation needs to be conducted to determine if a “sheltering” strategy is appropriate, and to what extent you should shelter assets from Centrelink testing.

Centrelink entitlements form an important part of retirement income streams and it is important to gain an understanding of what you may be entitled to in the future. For many retirement plans, these entitlements have a significant impact on when retirement is achievable.