Small business and the Pension
I'm 69 and started a small business a year ago hedge trimming. I've never applied for the pension but the work, although useful to stay active, is quite physically demanding. Meaning at my age doing it every day is a challenge. I dont want to give it up as it pays for the basics.
Centerlink require a three month profit and loss statement for my little business for the age pension application. My grose sales for my service overall for three months is about $5000 but when I factor in all the running costs like insurance petrol supplies etc, it leaves about $1650 for my living expenses and a break even over three months.
I dont have any other income other than this small business.
My question is - do centerlink base the pension they will give me on the $5000 grose for the 3 months ($417 pw) or the $1650 ($137.50) left for my living expenses, which is basically what is left after all the running costs?
THey look at net profit after expenses, not gross turnover. You also have a "work bonus" that disregards $300/ftn of income from wages or self employment. So in your example the net $137.50/wk will not have any impact on the Pension.