Centrelink Payment and Offset Account

funnysht on 05/05/2019 - 18:30
Last edited 05/05/2019 - 18:53 by 1 other user

Hey guys
My friend is looking to apply for a masters in finance- however he's going to do it full time basis. Mainly because he has been having trouble finding work- he is currently arppox 4 months out of work.
He's wondering what sort of centrelink payment this will entitle him to- looking online i'm guessing it is just austudy for higher degree.

However https://www.humanservices.gov.au/individuals/services/centre… states the waiting periord is >12 weeks if you have more than >$11,500.

I think he roughly has 3k but then his owner occupied home has like $50k in the offset account (most of the 50k was from the long service leave payout).

a) would he still be eligible for the austudy given it has been >12 weeks
b) would he better of just renegotiating his home loan (i.e. put the 50k to reduce the amount owned rather than keeping it in an offset account) before applying.
c) could they just say you need to use the 50k before applying

Thanks in advance and i'll pass on any suggestions,

Financial

Related Stores

Services Australia
Services Australia

Comments

  • altomic on 05/05/2019 - 18:37
    +1

    What did Centrelink tell your friend when he asked them?

    also, could you PM me your friends name. because if they can't understand what centrelink requirements are then I don't want any finance advice from him/her

      • altomic on 05/05/2019 - 18:55
        +2

        so it can't wait until the next business day to ask the actual body for the correct answer?

        • funnysht on 05/05/2019 - 18:56
          +1

          clearly we're not going to agree. so you can't just let it go and move onto the next thread mate?
          edit: sorry also don't mean to be difficult altomic. just trying to help a friend out.

          • altomic on 05/05/2019 - 19:12
            -4

            @funnysht: ??

            there is nothing to not agree upon.

            • Numpty21 on 05/05/2019 - 19:20
              +6

              @altomic: I agree with OP
              You comment the same thing in almost every forum post, just move on to the next thread and post …… “what did XXXXX say they asked them”

              • altomic on 05/05/2019 - 19:59
                -7

                @Numpty21: Because every post where i make that comment is a post which could be answered simply by the OP (or the OPs friend or daughter) Making a phone call or googling it.

                • burningrage on 05/05/2019 - 21:28

                  @altomic: Look. I don't like your line of answering but to be fair, you do have a point.

                  Many of the questions in the general forums these days are something that can be obtained with a some effort of researching.

                  Having said that, this thread may NOT be one of them. Centrelink can be one helleva maze to navigate.

                • Samsungnote10 on 05/05/2019 - 23:44

                  @altomic: and where does it say on forum rules that any question that can be googled in 2 seconds is not allowed on here?

                  who made you executioner,

                  99% of the questions on here could be googled

              • teacherer on 05/05/2019 - 21:34
                -3

                @Numpty21: @altomic contribute to the discussion for once

                • altomic on 05/05/2019 - 21:57
                  -1

                  @teacherer: that's rich coming from you

                  have a look at ,say, my last 20 comments and tell me if the majority were n't "contributing"

                • [Deactivated] on 24/05/2019 - 19:14

                  @teacherer: Altomic has made so many useful, mature comments over the ten or so years I've been here. Topics from booze to finance to holidays.

                  She's a good one.

        • WreckTangle on 05/05/2019 - 20:14
          +3

          Yip, i’m sick of seeing it too…it adds nothing to the discussion

    • Diji1 on 05/05/2019 - 19:13
      -2

      Centrelink are entirely the wrong people to be talking to about payment eligibility as they are duty bound to give advice that minimises the amount the person is eligible for.

      • funnysht on 05/05/2019 - 19:16

        really? so who ends up deciding the actual amount.?

  • toniyellow on 05/05/2019 - 18:44
    +1

    Only three universities offer a Masters of Applied Finance that is eligible for Austudy.

    https://www.legislation.gov.au/Details/F2019L00062

    There is no getting around that list, and it is rare for the government to approve new Masters courses to be added to it.

    Does he want to study at Adelaide, Charles Sturt or Wollongong? Are they the ones that will offer him the best chance of getting a job in the field or would he be better off going to a different uni and using the money in his offset to support himself?

    He has to put a lot of thought into this, and more than just how to squeeze the most out of Centrelink, or he will finish the degree and still have trouble finding a job.

    • funnysht on 05/05/2019 - 18:47

      Thanks that's quite useful. I think he probably wants UNSW, but he has heard some good things about Wollongong. Excuse the pun but finances is always going to be an issue when choosing a course- but you're right the quality of the degree is prob more important. I guess he's just trying to find out the options- if clearly he's not allowed to get abstudy then he has to plan what else he's going to do e.g. doing masters part time then, thanks

    • funnysht on 05/05/2019 - 19:21

      also according to
      https://www.humanservices.gov.au/individuals/enablers/approv…

      it just states it needs to be eligible for HECs help or fee-hellp

  • CyberMurning on 05/05/2019 - 18:50
    +3

    He has more money than average ozb so use them first before asking government help.

    • funnysht on 05/05/2019 - 18:54
      -2

      i would rather my taxes go to him who has worked hard and gotten long service leave, than some yobbo who is too lazy to work, plays xbox, drinks and spends their time on whirlpool:)

      • Quantumcat on 05/05/2019 - 19:07
        +9

        So you'd rather someone who has options and choices gets the money, but not someone so is trying to get a job but can't afford to even live, or uni students who are trying to get their first degree trying to manage 30 contact hours a week while working enough to keep a roof over their heads and not have to go without food too often, while finding the time to do their assignments as well? You, or, cough, your friend should get over yourself (or cough him or herself).

        How about you just follow the rules and not try to scam the taxpayer - robin hood trying to rob the poor to pay the wealthy?

        • Diji1 on 05/05/2019 - 19:17
          +1

          robin hood trying to rob the poor to pay the wealthy?

          That is what the Labour and Liberal Parties have been doing for the past 40 years ever since neoliberal corporate tool Paul Keating started the country down it's present path.

          • Baysew on 05/05/2019 - 19:20
            +6

            @Diji1: Paul Keating on the Greens -

            "They're a bunch of opportunistic Trots hiding behind a gum tree trying to pretend they're the Labor Party"

      • [Deactivated] on 06/05/2019 - 17:30
        +1

        Thats some funnysht

    • zombrex on 08/05/2019 - 19:16
      +1

      Why should it matter!? The government rules allows hundreds of thousands of dollars in both cash and assets and you are still eligible for government payments.

      Making people with a relatively small amount of money in their bank wait up to three months for assistance is not going to help them and could lead to further hardship.
      People who have done the right thing and saved money for the future are treated worse than those who have spent it all.

  • Wystri Warrick on 05/05/2019 - 18:53
    +2

    Have a look into New Start, it's up to $550 a fortnight, austudy is about 450 a fortnight.

    • funnysht on 05/05/2019 - 18:54

      i think with newstart it's tough- doing full time but also applying for jobs etc?

      • Wystri Warrick on 05/05/2019 - 19:01

        To get New Start one either needs to be with a job search agency, apply for X amount of jobs each fortnight and undertake any relevant training.
        The other option is to be studying an approved course full time at a nationally recognised institution.

  • Baysew on 05/05/2019 - 19:02
    +1

    Interest rate products
    Money on deposit including bank, building society and credit union accounts.
    Examples:
    home loan offset/mortgage saver accounts,
    savings accounts,
    cheque accounts,
    interest bearing deposits,
    term deposits.

    Note: this seems to relate to deeming, so best to confirm with Centrelink.

    The general idea is that you get to dip into your own stash before getting hold of any Social Security money.

    • funnysht on 05/05/2019 - 19:13

      thanks, yes that looks like the care..interesting then it would prob be better if he converts his offset into an account with a redraw facility.

      and does deeming mean that his rate will be reduced or that the interest gained (or saved) from the account will be counted as income.

  • CyberMurning on 05/05/2019 - 21:52
    +2

    The general idea is that you get to dip into your own stash before getting hold of any Social Security money.

    That/\

  • Fier2 on 05/05/2019 - 22:05

    My understanding is if you have any money/assets, you won't be eligible for any payment from them. Doesn't matter how your friend will try to hide it or work it out, he would have to pay himself. If he owns a property , they will assesed how much he get from it and how much is his spending . So no way around for your friend. He has to pay from his pocket or ever take a loan.

  • [Deactivated] on 05/05/2019 - 22:20
    +3

    why would you get centrelink if you have 50K cash?

    • Quantumcat on 05/05/2019 - 23:00
      +3

      I think they make special rules for those who are disabled from having too much greed

  • Quantumcat on 05/05/2019 - 22:58

    It is all useless anyway because you have to submit an employment separation certificate on which the ex employer will state how much they gave him and the assessment will be based on that. And there's no backdating. Your "friend" should really have applied the day he lost his job, he would have been out of the waiting period by now. The maximum period is only a few months at most.

  • tabitha731 on 06/05/2019 - 08:01

    Getting a masters degree is not going to guarantee a better chance of a job. Many people who have done their masters, have fond that it has not benefitted their search for a job. More & more people have their Master's these days, so there isnt any more advantage to havibg one.

    Your friend has zero chance of getting money from centrelink,given he's only been out of work 3 months, and has a property. Been ther, and from experience.. Centrelink won't even entertain him.

  • kazoomyn on 06/05/2019 - 08:05

    From Centrelink's website-
    Waiting periods ie eligible but may just not get paid straight away:
    . If you got paid out leave entitlements-
    https://www.humanservices.gov.au/individuals/enablers/income…
    . If you have liquid assets-
    https://www.humanservices.gov.au/individuals/enablers/liquid…
    _
    Actual income and assets test ie if you have more income/assets in total than the cutoff, you may not be eligible at all:
    .Income-https://www.humanservices.gov.au/individuals/enablers/personal-income-test-austudy-and-youth-allowance/30411
    .Assets- https://www.humanservices.gov.au/individuals/services/centre…
    _
    If in doubt, just put a claim in and you'll either get a yay (with our without a waiting period) or a nay (not entitled at all).
    Pretty sure you can put a claim in before you start studies even.

  • Stoozer on 06/05/2019 - 08:23

    If your friend deposits the money into the mortgage account instead of the offset account it won't be included in the centrelink asset assessment, just make sure he has a redraw facility in case he wants to redraw it in the future.

  • Zachary on 15/05/2019 - 17:00

    Just take out the 50k cash from your bank(And if centrelink asks or finds out about it, just say you had to pay off a loan with it or a friend back….), hide it and say you have no money to sustain yourself whilst studying a masters. Hopefully centrelink will have some sympathy for you considering you have no money but at least a roof over your head and support by providing a small amount of welfare each fortnight……

    • funnysht on 15/05/2019 - 23:16

      lying is prob not the best idea- they can then charge you with fraud.

      • Zachary on 24/05/2019 - 18:18

        If they find out, but as long as you're smart with the the 50k they probably won't….actually now that's been discussed, they could just jump on here and cross reference your user here and look you up so it's probably not best to do it anyways….hah….sorry I blew it for you for even suggesting!

  • funnysht on 15/05/2019 - 23:29

    I'm with https://www.loans.com.au/home-loans/offset-account/what-is-a…
    but isn't this technically a offset account not a redraw facility?

Login or Join to leave a comment
Login Join