Nick Bruining: It pays to check your Centrelink records and tweak asset values to maximise your age pension

With the next rise in pension payment rates due to kick in on Wednesday week, now is the time to check and update your Centrelink records to ensure you get the most from the increase.

There’s a chance that an improvement in share valuations over the past few months could see your expected pension windfall wiped out and, possibly, even a reduction in your current fortnightly payment.

That’s because a lift in payment rates also triggers an automated review of all unit-based investments Centrelink has recorded. This includes share holdings, superannuation and other managed investment funds.

Account-based pension funds receive separate treatment and are usually updated in March and August. You might use this opportunity to check the records Centrelink has on you are accurate.

Checking now is important because the valuation of an investment with any type of share exposure is likely to have risen.

When the last automatic update was run in September last year, the ASX/S&P200 index was about 6 per cent lower than it is today. When Centrelink computers calculate your new entitlements from March 20, they will use unit and share prices from the end of February.

The trick, and indeed a legal requirement, is to ensure that all the records held by Centrelink are accurate. The agency sometimes doubles up, particularly if you opened a new bank account with the proceeds of another.

Equally, even though you provided full details — including account numbers and copies of statements — when you first claimed a benefit, Centrelink doesn’t routinely track account balances or values. It is up to you to keep them up to date because it won’t know that you spent money on a trip.

The easiest way to update the information is via the Centrelink service at my.gov.au.

Firstly, check that the fixed asset values reflect the current valuations. Things like cars, caravans and boats depreciate in value. Use the current private sale values, which you can get from sites like carsales.com.au or even Gumtree.

Next, check that bank balances are accurate. Also check that the records aren’t showing any closed accounts. You may need to provide copies of closing statements, but the system will usually prompt you if that’s required.

Then look at the unitised investments and check that the number of units or shares showing in your records is accurate. You may have cashed out some super for a trip or received shares through a dividend reinvestment plan.

If you recently cashed out money from an account-based-pension since Centrelink last updated, you can provide a new Centrelink schedule. You can normally download a current schedule from your super fund at any time.

Lastly, double-check any investment properties shown. Make sure the valuations are about right. If left alone, Centrelink will typically revalue properties every year, but there’s normally no set frequency.

Nick Bruining is an independent financial adviser and a member of the Certified Independent Financial Advisers Association