Going through a separation or divorce is a difficult time, and dealing with Centrelink bureaucracy is the last thing you want to do. However, separating from your partner changes your Centrelink assessment from the "couple rate" to the "single rate," which usually means a significant increase in your fortnightly payment.
You must notify Centrelink within 14 days of separating to ensure you receive the correct rate and avoid complications.
How to Notify Centrelink of a Separation
You cannot simply click a button online to say you are separated. Because relationship status drastically affects payment amounts, Centrelink requires formal documentation to prevent fraud.
You will need to complete the Separation details form (MOD S). This form asks for:
- The exact date of separation.
- Whether you are still living in the same house (separated under one roof).
- Details of any shared assets or joint bank accounts.
Separated Under One Roof
Given the housing crisis, many couples are forced to continue living in the same house after separating. Centrelink recognises this, but they will scrutinise your claim closely.
If you are separated under one roof, you must prove that the relationship has genuinely ended. Centrelink will look at:
- Financial separation: Have you closed joint bank accounts? Do you buy your own groceries?
- Social separation: Do your friends and family know you are separated? Do you attend social events separately?
- Household arrangements: Do you sleep in separate bedrooms? Do you do your own laundry and cooking?
You will need to provide statements from third parties (like a social worker, doctor, or trusted friend) confirming that the relationship is over.
How Separation Affects Your Payments
- Pensions and Allowances: Your payment will switch to the single rate (e.g., Age Pension increases from $905.20 to $1,200.90 per fortnight). Crucially, your ex-partner's income and assets will no longer be assessed against your payment.
- Parenting Payment: If you were on Parenting Payment Partnered, you will be moved to Parenting Payment Single, which pays a much higher rate ($1,000.80/fn).
- Family Tax Benefit: You will need to apply for a child support assessment. If you share custody, your FTB will be split based on the percentage of care you provide.
Property Settlements and the Assets Test
If you are going through a property settlement, the assets test can be complicated. Until the settlement is finalised, Centrelink generally assesses you as owning half of the joint assets.
If you move out of the family home and your ex-partner stays there, your share of the home may eventually be counted as an asset, which could reduce your payment. It is highly recommended to speak to a Centrelink Financial Information Service (FIS) officer during a divorce to understand how the settlement will impact your pension.