6 hours ago
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March 18, 2026 — 5:02am
How is gold bullion categorised for Centrelink purposes – as an asset or as income? I am currently being assessed under the income test, so does this include the value of gold when it is purchased? If the value of the gold increases, does that affect my pension now or only when it is sold? Also, if I sell some gold, am I required to inform Centrelink if my income exceeds the deeming threshold, and if it does not exceed that threshold, can it remain unreported?
Gold bullion held as an investment is treated by Centrelink as a financial asset. It’s counted under the assets test and included in your pool of financial investments subject to deeming rules under the income test.
The market value of the gold is added to your other financial assets – bank accounts, shares, managed funds – and Centrelink applies standard deeming rates to that total to calculate your assessable income, regardless of whether the gold produces actual income.
Buying gold doesn’t create assessable income, but once you own it, the value must be declared to Centrelink. If the price rises or falls, that’s not treated as income, but the current value may affect your pension when reviewed.
When you sell gold, the proceeds aren’t treated as income – you’ve simply converted one financial asset to another. If the money goes into a bank account, it continues to be deemed.
Note that personal jewellery is exempt from the assets test as it’s regarded as a household item rather than an investment. Gold bullion doesn’t fall into that category. You should notify Centrelink whenever you buy or sell gold bullion as it changes the value and structure of your assets.
My mum is 75, recently widowed, and receives the full age pension. She lives alone in a large family home worth about $2 million (mortgage-free) and has $100,000 in savings. The house is far too big for her needs, and I’m worried about injury risks as she ages, plus the maintenance burden is significant. I’ve been encouraging her to downsize to something more suitable, which would allow her more time to enjoy life. However, she won’t even consider it because she’s convinced downsizing will affect her pension if she has money left over from the sale. Is there any way she could downsize and keep her full pension?
Your mum’s fears are understandable but possibly unfounded. The asset test threshold for a single home owner to retain full age pension is $321,500, so if she had substantial funds left after buying a smaller home, she’d lose the full rate of pension.
But that doesn’t mean downsizing is off the table. The full age pension is worth about $30,646 a year, plus the pensioner concession card. If the concession card is important, she could structure her finances to stay under the part-pension cut-off of $714,500 and retain all concessions. Even without any pension, she’d still qualify for the Commonwealth Seniors Health Card.
The real question is whether staying in an oversized house just to maintain the pension makes financial sense. Downsizing would eliminate injury risks, reduce maintenance, and give her a far better lifestyle in her 70s.
Sit down with her and run the numbers together. Look at what a smaller home would cost, what she’d have left over, and how much pension she’d receive. Sometimes seeing it in black and white makes the decision clearer. Downsizing certainly makes sense from a lifestyle perspective – it’s just a matter of helping her see past the pension fears.
I recently read your comment that for long-term growth, it’s generally better to purchase a freestanding house, rather than an apartment. Is this something owner-occupiers should also consider? I’m six years from retiring and currently live within 10 kilometres of Melbourne CBD. Because of an inheritance, I could afford to buy an apartment in this area. Alternatively, I could move further out to an outer suburb and purchase a house of inferior standard, or possibly move to a regional town and buy a house there.
The key to making money in real estate is finding an underpriced property you can add value to. That’s the difficulty with apartments – you generally can’t add value, and they simply age.
But the bigger issue here is lifestyle. Many retirees live very happily in apartments, so focus on the lifestyle that would suit you best. Provided you buy in a good location and hold it long term, you are unlikely to lose money.
My wife is turning 75 in September this year. Can we use the three-year bring-forward rule and place $360,000 into her super? I am a bit confused because I understand that 75 is when contributions normally cut out.
Yes, a 74-year-old can use the bring-forward rule, but timing is critical. Your wife must be 74 or younger on 1 July of the financial year when the contribution is made.
As she was 74 on July 1 this year, she can trigger the bring-forward rule. That would allow a non-concessional contribution of up to $360,000 (3 × $120,000) this financial year, provided the bring-forward rule hasn’t already been triggered in the previous two financial years and her total super balance was below $2 million on or before June 30, 2025.
There’s also a timing rule at age 75. Contributions must be received by the fund within 28 days after the end of the month in which a person turns 75.
If your wife turns 75 in September, the contribution must be received by October 28. That means she could make the contribution before that deadline and successfully trigger the bring-forward rule.
However, if someone is already 75 on July 1, they cannot initiate the bring-forward rule in that financial year. Always confirm the details with the super fund or seek financial advice before making the contribution to ensure all eligibility rules are satisfied.
Noel Whittaker is author of Retirement Made Simple and other books on personal finance. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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