Rekha, a 75 year old widowed retiree wants to apply for a Centrelink payment. Over the past year, she has gifted $50,000 of her savings to her family. She has an investment property, with a mortgage of $60,000 outstanding, and earns $15,000 per year in rental income. She also has a casual job, earning $36,000 per year. She has an account-based super fund balance of $240,000. She owns her residential home which is valued at $1.8 Million, and owns the following assets;

Asset Total Asset Value Managed Fund $20,000

Investment property $350,000

Share Portfolio $19,000

Bank Savings Account $8,000

Car $28,000 Pre-paid

Funeral $25,000

Furniture $18,000

Jewellery $4,000

Calculate assessable income, including deemed income. 4 Marks Calculate the pension using the income test based on assessable income.

Calculate the pension using the assets test based on assessable assets.