{"id":2337,"date":"2026-01-12T05:21:51","date_gmt":"2026-01-12T05:21:51","guid":{"rendered":"https:\/\/actinvest.com.au\/?p=2337"},"modified":"2026-01-12T05:21:52","modified_gmt":"2026-01-12T05:21:52","slug":"care-needed-with-ceased-legacy-pensions","status":"publish","type":"post","link":"https:\/\/actinvest.com.au\/index.php\/care-needed-with-ceased-legacy-pensions\/","title":{"rendered":"Care needed with ceased legacy pensions"},"content":{"rendered":"

SMSF members with legacy pensions should be aware a commuted income stream may affect their Centrelink entitlements, but also the government has employed staff who can calculate the impact, a technical specialist has said.<\/p>\n

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Heffron SMSF technical and education services director Leigh Mansell stated members with legacy pensions waiting for a debt waiver to commute it could now do so, but cautioned them to be aware of any flow-on impacts.<\/div>\n
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\u201cIf they are an age pensioner and their legacy pension is assets test exempt, but they were concerned about being reassessed over the previous five years and might have had a debt in relation to previous payments, we are now in a position where they can safely commute under the amnesty Centrelink will waive any debt,\u201d Mansell told attendees of a recent technical update.<\/div>\n
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\u201cIf you are talking to clients about this be careful because as soon as you move money out from being assets test exempt, it moves into a different world where it would be asset and income tested, regardless of what they do with the commutation proceeds.<\/div>\n
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\u201cIf they are going to stick it in an accumulation account or take it out and invest it in their own name, they will have a financial asset for those particular age pension tests and also potentially for their aged-care tests as well, and once you have made the move, you can\u2019t go back.\u201d<\/div>\n
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She added it may not be easy to calculate the impact of a commuted legacy pension on other Centrelink entitlements, but that agency had Financial Information Service (FIS) officers to help pensioners.<\/div>\n
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\u201cWe have spoken to clients waiting on the debt waiver to come to life and directed them to a FIS officer because we aren\u2019t Centrelink experts and the clients have been asking us: \u2018What do I do?\u2019 and \u2018What are the ramifications if I commute?\u2019\u201d she said.<\/div>\n
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\u201cSo far, so good with those clients. Centrelink and the FIS officers have been quite useful to tell them how much their age pension would go down and what would occur.\u201d<\/div>\n
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December 18, 2025
\nJason Spits
\nsmsmagazine.com.au<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

SMSF members with legacy pensions should be aware a commuted income stream may affect their Centrelink entitlements, but also the government has employed staff who can calculate the impact, a technical specialist has said.<\/p>\n","protected":false},"author":1,"featured_media":2338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2337"}],"collection":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=2337"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2337\/revisions"}],"predecessor-version":[{"id":2339,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2337\/revisions\/2339"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media\/2338"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=2337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=2337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=2337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}