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Raami LAWRENCE

hen your employment income goes over the cut-off point, it will reduce your Age Pension to $0 for that fortnight. If your income goes over the cut off point for more than 6 fortnights in a row, your Age Pension payment will be suspended. This will be for up to 2 years, so you don’t have to reclaim if you start earning less or stop working.You don’t need to ask to suspend your payment, and it will happen automatically. When this happens, you will be advised in writing and told the dates of the period of suspension.

You won’t need to report your employment income while your payment is suspended.

You can also keep your Pensioner Concession Card for up to 2 years during the suspension and you won’t need to report your income each fortnight.

• you only earn income from selfemployment, even if your business is in Australia.

In addition to this change, the Age Pension, Carer Payment, and Disability Support Pension will increase by $37.50 a fortnight for singles and $56.40 a fortnight for couples combined.

This increase applies to Disability Support Pension recipients who are either older than 21 years of age or younger than 21 and caring for a dependent child. Please note that you do not need to take any action to receive this increase, as it will happen automatically.

Pension will be suspended if both of these conditions apply:

• you get Australian employment income

• your income goes over the cut-off point for more than six fortnights in a row.

Your Age Pension will not be suspended if any of the following apply:

• you don’t get Australian employment income

• you have a Work Bonus balance

COMMONWEALTH SENIORS HEALTH CARD - ENTITLEMENT

Income limit thresholds:

• Single $90,000

• Couple (combined) $144,000

• Illness-separated couple (combined) $180,000

• For each additional child add $639.60

I HAVE BEEN SUED , WHAT DO I DO NOW?

Firstly - don’t get sued to start with. Before the Court Proceeding arrived, you would have received a letter of demand of some variety outlining the dispute, why the other side felt aggrieved and what they wanted. OK you probably didn’t agree with their version of events or their demand, but that doesn’t mean you stick your head in the sand and ignore them. Get on the front foot, get legal advice on your position and reply to the demand.

Your reply may take the wind out of their sails, or you may be able to negotiate a quick settlement. Secondly – if you have been sued, don’t ignore it. You only have 28 days to file your defence or try to negotiate an out-ofcourt settlement. If you don’t, the other side can apply for default judgment. This is a decision where they win the amount they sued for, but also extra money for interest and their legal fees incurred. Once a judgement/order has been entered against you, that can be used to wind up your company, or bankrupt you personally, or haul you into court along with your financial documents to extract the money you owe. None of which is pleasant.

Thirdly - Remember once sued, it may be too late to try and go back and re-open an old offer to settle. The other side will have incurred, and be entitled to, interest on the debt (approx. 7% at present), court filing fees, and the fees they have paid their lawyer for advice and drafting the court documents.

Fourthly – get a lawyer, a good one. Not all lawyers are the same. Some specialise in wills, or tax, or property. Many dabble in disputes, some do it full time. Make sure you get the right one (a full-time disputes lawyer), and not one that wants to just have the court fight, but one that will try and negotiate a settlement and get you back to what you do best – your business – as quickly and cheaply as possible.

Business take-away: If you receive a letter of demand don’t waste time. Get legal advice about your position and your rights quickly, you may be able to settle the dispute. If you get sued, see a good disputes lawyer as you only have a short time to prepare a defence or try to negotiate a deal.