A retired single person eligible to receive the age pension has the following assets:

Main residence - $500,000

Investments - $40,000

Funeral bond - $20,000

Superannuation - 350,000

Before the next Centrelink assessment, they are planning a one-off cash gifting of $20,000 to a relative. In calculating their age pension entitlement, how much will the reduction be from the full pension rate based on the assets test? Use the rates and thresholds provided in the textbook.

Question 7Select one:

a.

$306 pf

b.

full pension will be reduced to nil

c.

$336 pf

d.

$396 pf