Urgent warning to Centrelink recipients ahead of $150million Powerball draw
There is an urgent warning for Australians receiving Centrelink payments to be aware of a hidden loophole ahead of Powerball’s multi-million dollar draw.
Powerball won a whopping $150 million in Thursday night’s drawing after no one claimed the top prize in the past six weeks.
But The Lott wants Centrelink recipients to be aware of a little-known rule should they win one of the big prizes.
The Lott has warned recipients of Centrelink benefits that their payments could be affected by a substantial gain – even if they gave the money away
A is included in an asset test and can affect many benefits, such as Austudy and the Old Age Pension
If someone on Centrelink is lucky enough to win one of the substantial prizes in the divisions, this could affect his or her ability to receive benefits in the future.
The rule will remain in place even if the Centrelink winner gives away all his prize money to friends and family, the newspaper reports 7 News.
The Lot has advised that winners receiving Centrelink benefits should seek advice from a financial advisor or Services Australia once they receive their prize.
βIf you are currently receiving Social Security benefits, your award may affect your eligibility,β the report said.
‘This will depend on the size of your prize and the current value of your assets. Giving away your prize may also affect your Social Security benefits. We therefore encourage you to seek financial advice and contact Centrelink.β
Services Australia says lump sums β or a one-off cash payment β ββcan be included in a recipient’s means test and “could affect your payment from us”.
Lump sums can also affect others advantagessuch as the Old Age Pension and Austudy.
All prizes won through participation in Golden Casket, NSW Lotteries, Tatts, Tatts NT and SA Lotteries are considered tax-free income in Australia.
But The Lott also has a warning for ticket buyers regarding taxes; another loophole that gamblers may not be aware of.
βOnce your prize is in a bank account, any interest you earn on your prize is subject to income tax for both you and the gift recipients,β the report said.
‘We strongly recommend that you seek professional financial advice when making any major lottery wins to ensure you get the maximum benefit from your luck.’