FINS2643 Lecture Notes - Lecture 8: Average Weekly Earnings, Social Security In Australia, Centrelink
Friday, 27 April 2018
M08 Social Security
M08-1 Social Security!
-Learning Outcomes!
•Describe how the social security system operates in Australia!
•Explain the different types of social security payments !
•Determine the amount of pension receivable with the assets test and income
tests!
•Discuss strategies to increase age pension entitlement!
Social Security!
-The social security system redistributes income taxes the government collected
from the current working population.!
-The Australian government provides basic income support payments to eligible
persons for:!
-Retirement!
-Unemployment!
-Disability!
-Centrelink administers these programs!
Types of Social Security Payments!
-Age Pension!
-A safety net income for people who are unable to fund their retirement
adequately. !
-Age Pension represents approximately 25% of average weekly earnings. !
-Disability Support Pension!
-For people with disabilities, illness or injury preventing them from working full-
time. !
-Newstart Allowance!
-Austudy!
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Friday, 27 April 2018
-Youth Allowance!
-Carer Allowance!
-Widow Allowance !
-Rent Assistance!
-Pharmaceutical Allowance!
-Telephone Allowance!
-Service Pension!
-Concession card!
-Senior Citizen Card!
Eligibility Requirements: Residence!
-An Australian resident on the day of lodging the claim. !
-Be physically present in Australia on the day lodging a claim. !
-Have been an Australian resident for a continuous period of at least 10 years, or
for a number of periods that total more than 10 years with one of the periods
being at least five years. !
Qualifying Criteria and Means Testing!
-Qualifying criteria vary from one pension or benefit type to another!
-Most social security payments are means tested to provide benefits to people
most in need. !
M08-2 Age Pension and Means Testing !
-As life expectancy has increased, as has the pension qualifying age. !
-New pension rates are published semi-annually. !
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Document Summary
The social security system redistributes income taxes the government collected from the current working population. The australian government provides basic income support payments to eligible persons for: A safety net income for people who are unable to fund their retirement adequately. Age pension represents approximately 25% of average weekly earnings. For people with disabilities, illness or injury preventing them from working full- time. An australian resident on the day of lodging the claim. Be physically present in australia on the day lodging a claim. Have been an australian resident for a continuous period of at least 10 years, or for a number of periods that total more than 10 years with one of the periods being at least ve years. Qualifying criteria vary from one pension or bene t type to another. Most social security payments are means tested to provide bene ts to people most in need. As life expectancy has increased, as has the pension qualifying age.
