John is aged 67. He is single and owns his own home. He has the following assets and liabilities as of March 15, 2023.

 

John is working part-time and currently earns $350 per fortnight. John is applying for the aged pension and would like to know his aged pension entitlement. (As he is applying for the age pension, his work bonus bank has a zero balance).

What is John's fortnightly entitlement to the aged pension under the Asset Test?

What is John's fortnightly entitlement to the aged pension under the Income Test?

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Asset Cash in savings account (earning 0.06% p.a.) Managed funds (expected rate of return of 3% p.a.) House contents Car Share Portfolio Family Home TOTAL Liabilities Credit Cards (interest rate of 18% p.a.) Mortgage on Family Home (fixed rate of 3% p.a.) TOTAL $90,000 $50,000 $35,000 $25,000 $120,000 $1,200,000 $1,520,000 $15,000 $125,000 $140,000 Asset Cash in savings account (earning 0.06% p.a.) Managed funds (expected rate of return of 3% p.a.) House contents Car Share Portfolio Family Home TOTAL Liabilities Credit Cards (interest rate of 18% p.a.) Mortgage on Family Home (fixed rate of 3% p.a.) TOTAL $90,000 $50,000 $35,000 $25,000 $120,000 $1,200,000 $1,520,000 $15,000 $125,000 $140,000

Answer rating: 100% (QA)

To calculate Johns fortnightly entitlement to the aged pension we need to consider both the Asset Test and the Income Test Lets calculate each one sep... View the full answer