Centrelink cuts disabled teacher’s pension because he won Set For Life lottery
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What they DON’T tell you about winning Lotto: How a disabled teacher’s $60,000 jackpot led to his pension being cut by $250 a week – because Centrelink now considers him a ‘professional gambler’
- Craig Hill, 61, won The Lott’s Set For Life and will receive $5,000 a month for a year
- Lottery winnings are not taxable income, but Centrelink still cuts its well-being
- Claimed because the payments were regular, he was a ‘professional gambler’
- He says his wife’s compensation was also reduced by about the same amount
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A disabled teacher saw his pension cut by $500 every two weeks after a $60,000 lottery win, despite being tax-free.
Craig Hill, 61, who suffered severe psychological damage while being held hostage by the Townsville Prison inmates, regularly participates in The Lott’s Set For Life game.
He took the modest win last week and will be paid $5,000 a month for a year according to the terms of the lottery, rather than all at once.
The Australian tax office confirmed that his winnings were not taxable income, as is the case with all gambling payouts to average gamblers.
However, he was shocked to learn that his $820 per two-week disability pension would be reduced to about $320 because Centrelink considered him a “professional gambler.”
Craig Hill, 61, won The Lott’s Set For Life game which pays $5,000 a month for a year, but because they’re regular payments and not a lump sum, Centrelink will cut its payments from $820 every two weeks to $320
Mr Hill claimed that after asking for a review, Centrelink agents also cut his wife’s health care allowance by roughly the same amount as his pension.
“I did the right thing and contacted Centrelink and they told me that because it was paid monthly it counted as gambling income,” he told Daily Mail Australia.
“So I asked if I could deduct all my gambling losses from the past 20 years and they said no, you don’t become a professional gambler until the day you win.
Mr Hill claimed that after asking for a review, Centrelink agents also reduced his wife’s health care allowance by roughly the same amount as his pension.
“Had I won $600,000 on the Powerball it wouldn’t affect my pension, but because it’s paid monthly, I’m a professional gambler, that’s ridiculous.”
Mr Hill claimed Centrelink officials had told him he could take the dispute to the Administrative Tribunal, but then his full pension from the past seven years could be checked.
“There’s a culture in some of these departments where they see customers as the enemy, but if they didn’t have customers, they wouldn’t have jobs,” he said.
Mr Hill said he was far from a professional gambler, only playing Powerball when the jackpot got high and buying Set For Life regularly since 2015.
“I don’t bet on the horses or go to the casino, maybe the poker machines bother me from time to time,” he said.
The former Australian Democrat Vice President said Public Services Secretary Bill Shorten was able to intervene but his office was not cooperating.
He also asked The Lott if the winnings could be cashed out in one lump sum to avoid the issue, but he claims the company refused and gave no reason.
“Everyone has the capacity to solve the problem, but nobody wants that,” he said.
The Lott’s Set For Life lottery has a top prize of $20,000 per month for 20 years. Mr Hill won a lower division paying $5,000 a month for a year
Mr. Hill was diagnosed with PTSD and schizophrenia 18 years ago through his work as a prison guard, but was able to continue to work as a teacher.
However, having been held hostage by eight inmates who threatened to kill him, he suffers from severe anxiety and can barely leave his Brisbane home.
He does sporadic administrative work from home which he reports on a profit and loss statement that he submits to Centrelink every three months.
Daily Mail Australia contacted Social Services for comment.