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Overview

The Age Pension Tab in Cashflow 2.0 offers a comprehensive overview of the Centrelink benefits a client or partner may be eligible to receive.

These calculations are based on three primary factors: Age, Income Test, and Assets Test. The tab ensures accurate assessment and projection of Age Pension entitlements, helping you provide tailored and precise retirement planning insights.

The Age Pension Tab is populated by data entered in the Fact Find section of AdviserLogic. Relevant details include:

Income	Captured in Fact Find > Income, including employment income, pensions, and other relevant income streams.
Assets	Added under Fact Find > Financial > Assets, including all assessable assets such as investments, superannuation, and property.
Superannuation and Pensions	Enter in Fact Find > Financial > Superannuation, where details about account balances and pension structures are defined. This information flows into the Age Pension tab, providing a foundation for automated eligibility calculations.

Access

To access the Cashflow Age Pension tab, open a client record, hover over the Cashflow tab, and select Cashflow 2.0 from the drop-down menu.

Open an existing Scenario or create a new one by selecting the blue Plus+ button, entering a Scenario Name, and ticking the available setup options.

Enable Automatic Calculations

To have Cashflow 2.0 automatically calculate Age Pension, ensure the Age Pension Applicable checkbox is selected when creating or editing a scenario.

This option can be found under Advanced Options in the Add/Edit Scenario dialog box.

The Cashflow 2.0 landing page will open the Cash Accounts tab in the Overall Position if the client is partnered or on the individual client sheet if unpartnered.

The Overall Position provides a unified system for managing cash flow for both the Client and Partner.

By consolidating income, expenses, and transactions into a single sheet, it simplifies tracking for multiple income streams and superannuation. This approach allows for efficient management of surpluses and deficits while supporting shared financial goals.

The centralised system enhances financial planning by making monitoring, analysing, and optimising cash management easier.

You can view individual values for the Client, Partner, SMSF, or any Business or Trust entities, and their Superannuation Accounts by selecting options from the drop-down menu.

If the client is unpartnered all the options will be available from the main sheet, and additional entities such as Trusts or Businesses will be found within the dropdown

This allows you to isolate and analyse specific financial data for each entity, ensuring a clear and detailed understanding of their contributions and cashflow dynamics.

The Age Pension tab is located in the Individual Client Tabs. For partnered clients, select the Client or Partner from the drop-down menu and navigate to the Age Pension tab; for unpartnered clients, the Age Pension will show in the main sheet.

Adjust Indexation

Age Pension indexation rates can be customised from the Advanced Options in the Add/Edit Scenario menu.

Aside from showing in the Pension tab, the total eligible Age Pension calculated will also show as an Inflow in the Cash Account tab in the Overall Position.

Taxable Income

Age Pension income is considered taxable unless it is the sole income for the client or partner. In such cases, it is non-taxable.

Age Pension Tab Layout

The tab is divided into three sections:

Calculation Factors

Displays the Age Pension thresholds and parameters used for calculations, such as limits and rates.

Assumptions

Age pension assumptions can be found in the Assumptions tab in the Overall Position.

Income Test

Calculates Age Pension eligibility based on income data sourced from the Cash Account, Assets Tab, and Pension Tab.

Assets Test

Calculates eligibility based on asset balances, including:

Asset Balances
Super Balances
Pension Balances
Cash Account Balances

Additional Calculations

Calculation of Applicable Age Pension	The minimum entitlement from the Income Test and Assets Test will be applied as the Applicable Age Pension.
Work Bonus	Employment income is adjusted for the Work Bonus and reflected in the Age Pension tab.
Deemed Income	By default, all assets and pensions are treated as Deemed Income. To exclude specific assets or pensions from deemed income, right-click on the respective entry and edit the value to set Deemed Income to No.

Adjustments

Use the Plus+ button on the bottom right of the Age Pension tab to access the Variance option for manual adjustments. Adjustments can be made for both the Income Test and Assets Test by selecting the appropriate option.

Troubleshooting

Duplicate Age Pension Income in Cash Account

If Age Pension income appears twice in the Cash Account sheet, it may be due to manual entry in Fact Find > Income combined with automated Cashflow calculations.

To resolve this:

To manually calculate the Age Pension, you need to disable the automatic calculation option in Cashflow 2.0. Follow these steps:

Access the Scenario Edit Menu:

Select the line menu located in the top-right corner of the window. From the dropdown menu, choose Edit to access the scenario settings.