What assistance is available for people receiving little income, but whose assets are too high to qualify for a social security payment?

If you own assets, such as a farm and farm machinery, but cannot earn income from them and do not have other significant income, you would normally be unable to receive social security payments under the assets test, and would consequently suffer serious financial hardship. The same problem may arise if Centrelink decides that you have disposed of assets (see above).

If you are affected by these rules,, you can request in writing that Centrelink apply the 'hardship provisions'. This means that Centrelink will disregard or reduce the value of the asset when applying the assets test. Centrelink may not disregard the full value of the asset if they deem you obtain a 'notional income' from the asset.

The hardship provisions apply to pensions when you cannot sell (or be reasonably expected to sell) the assets, or you cannot use (or be reasonably expected to use) the assets as security for borrowing money.

The hardship provisions apply to allowances when you cannot sell the assets or use them as security for borrowing money.

To be eligible for hardship provisions your liquid assets (such as shares, cash or other investments easily converted to cash) must be less than $10 000 for a couple or $6000 for a single person.

You have to specifically ask Centrelink to apply the hardship provisions, after they notify you that your assets are above the limits for the social security payment. Your application has to be in writing - a special form is available from Centrelink offices. If you do not claim in writing, Centrelink will not automatically apply these provisions.