Rene is a 66 year old single retiree, has recently taken a car loan of $15,000 to purchase a new Toyota Corolla with a market value of $30,000, but Rene believes it is worth at least $35,000. Rene lives in her own house which was recently valued at $970,000 and is fully paid off. It is a brick home on a block of 1,000 square metres of land. She also has contents with a market value $10,000 (but Vivi, her knowledgeable 80 year old friend, believes they could be sold for $15,000 to an eager buyer).

Furthermore, she has an investment property valued at $250,000, which has an outstanding investment property loan of $200,000. She receives a net (i.e. after deducting the ongoing costs of maintaining the property and borrowing interest costs) rental income of $250 per week.

Her other assets include superannuation of $150,000, a funeral bond of $11,000 and shares that she had purchased one year ago for $25,000, which are now worth $55,000. She also was awarded a war service medal for valour in Afghanistan and similar medals have fetched $40,000 recently in auctions.

Rene has a Term Life insurance policy of $125,000 with an annual premium of $950, surrender value $0. This is held in her own name, outside of superannuation.

(You need to clearly show your workings for each step in your calculation):

Based solely on this information:

1. What assets and total amount in dollars, would be counted towards the aged pension assets test? Clearly list these assets and other possessions in the form of a table.

2. What assets and income would be included for Renes aged pension income test? Clearly list these assets and other relevant possessions in the form of a table. Calculate the deemed amount for the purposes of the Income Test

3. Would Rene receive any Age Pension? If so, which test would Services Australia (Centrelink) apply for her and what amount of fortnight pension would she receive? (Clearly show how much pension she would receive under each test)