How does Centrelink Assess Equity released?

A different Centrelink assessment applies if the client is borrowing against their home or an investment property.

Income test – will not be effected if the proceeds are consumed immediately upon withdrawal. If the funds are placed into an investment product, then the income test that applies to that investment product will apply.

Assets Test

• Home – the first $40,000 is not counted for 90 days; amounts above $40,000 are counted immediately.
• Investment property – this $40,000 concession does not apply.

To this end, the monthly income or flexible drawdown options might provide a better solution.

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