Clarry is 67 and his wife Maree is 56. Both have retired and Clarry is on a pension.

Their house is valued at $865,000 and their contents are $10,000. Their car is worth $55,000 and they have $44,000 in the bank. Their investments consist of managed funds worth $110,000 and shares worth $45,000.

Clarrys super is $220,000, while Maree has $160,000.

What is their pension entitlement under the Assets test?

Clarry could withdraw all of his superannuation tax free as he is over 65 and it is all either tax free or from a taxed source

Contribute it as a non-concessional contribution into Marees superannuation account

It is within the contribution cap when using the bring-forward rule.

Marees super is not assessable as she is under age pension age. This would reduce the couples assets by $220,000 to a total of $264,000 (from $484,000).

Assuming that Clarrys superannuation of $220,000 is made up of $30,000 tax free and $190,000 taxed in the fund, demonstrate how a recontribution strategy could be applied. Calculate Clarrys entitlement to the age pension after implementing the strategy and determine the annual increase in age pension from implementing the strategy