Does Capital Gain afrect the pension?



From: Debra L

If someone on a pension sells an investment property and receives a profit from the sale. Once capital gains tax has been paid, does the remainder of the profit that they have made have any effect on the pension they are receiving?

Does the DSS view capital gains as income, and reduce the pension entitlements for that financial year?

Thank you in advance for your assistance.

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Reply: 1
From: Danny Dwyer

To answer your question, I would suggest to read the Centrelink website. Here's the link, which will take you to the Index page:

I have pasted the part might answer your question.

Assessable Income:
What is assessable income?
Under the income test, assessable income is income which is used to work out what rate of payment you receive.

What income is assessed under the income test?
Examples of assessable income include:

deemed income from financial investments;
gross income from earnings, including fringe benefits;
net income from businesses, including farms;
family trust distributions or dividends from private company shares;
net income from rental property;
income from boarders and lodgers;
overseas pensions and income; and
income from income stream products, such as annuities and allocated products.
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Reply: 1.1
From: Paul Edwards


Dan has given you a good link. But to give you the short answer - it is what you do with the 'capital gain' after tax which will affect a pension (I assume you are talking AGE or DSP) For example if you put the money into a savings account the interest earnt from the account is taken into account when calculating the pension rate - and this is for the time your have the money in an account not just a set time frame such as your suggested year. . If you re-invest in another I/P then depending upon whether or not it is pos or neg geared then it will affect the pension accordingly. What people don't realise is that even if your pension is affected you are far better off than if you didn't have an I/P.
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