$780 Centrelink Increase.
Centrelink customers with assets over $686,250, may be entitled to claim a changed asset limit by Pre-paying for their funeral.
This could save them up to $780 per year, based on paying $10,000 as a prepaid funeral plan.
This payment would reduce their assessable assets for the asset test assessment.
Single homeowners could have assets up to $686,250, and single non-homeowners up to $938,250 to qualify for a part pension.
Example:
A single non-homeowner, with assets of $938,251 would not qualify for a part pension.
However, by prepaying $10,000 for a funeral, they reduce their assets to $928,251, and become eligible for a part pension again.
By spending $10,000 on a holiday, it seems that would do the same thing.
For couples, the limits are: $1,031,000 for homeowners and $1,283,000 for non-homeowners.
As at 1 July 2024 the allowable limit is $15,500. The Department of Social Services reviews this limit on 1 July each year.
www.servicesaustralia.gov.au/funeral-bonds-and-prepaid-funerals