‘So much for being lucky’: Lotto winner loses access to pension after winning $60,000

News.com.au
December 30, 2023

A widower who won $60,000 on the Lotto only to have his pension ‘unexpectedly’ cut off is warning other Australians to be careful what they wish for.   

Frank Kemmler, 70, from Adelaide, told his family they were going on a holiday after he learnt he had won thousands of dollars in a Lotto draw.

“It was certainly a nice feeling when I checked me numbers,” he told A Current Affair on Friday.

“I rang the family. I said, ‘pack up, we’re going on a holiday!’”

The excitement quickly came crashing down when he visited his local Centrelink and was told access to his pension would be cut as his Lotto winnings, paid out every month, was considered a form of income.

“[It] was a bit of a disillusionment. You think you win on the one hand, but they take it away with the other hand,” he shared.

“It was so unexpected, it took me a couple of days to realise I had just been cut off for no reason at all. So much for being lucky.”

The 70-year-old was told his monthly Lotto winnings were considered a form of income.

Mr Kemmler said he would have taken his winnings as a lump sum but he wasn’t given the option.

The 70-year-old has now been left to pay full price for GP appointments and medication which were previously covered under the pension.


Mr Kemmler’s monthly payments have also now died up. But when he reapplied to receive the pension on December 1, he was told “they were so busy” and he could wait for up to six months to receive the benefits.

“Anybody would think I grew younger, I grew a year older not a year younger,” he said.   

Mr Kemmler said he wasn’t given the option to receive his Lotto winnings as a lump sum.

He urged Aussies on the pension to be careful if they’re lucky enough to win Lotto as they too could have their benefits cut.

“The pension is not really my main worry, because I’m just trying to stop other people from falling into the same trap,” he said.


“These people that are buying these [lottery] tickets, there’s no warning anywhere … to say that you’re going to lose your pension.

“If I’d known then what I know now, I would’ve given the win to my daughter and kept the pension for myself.”

A spokesperson from Services Australia told news.com.au they “extend an offer to work directly with Mr Kemmler to ensure he’s getting the support he is eligible for”.

Wins aren't or shouldn't be considered income. Otherwise losses would be tax deductable.

"Mr Kemmler said he wasn’t given the option to receive his Lotto winnings as a lump sum.”

I thought Lotto was a lump sum win.    What other way is there to take your winnings?    I know in America it is a heavily taxed lump sum Vs a lower taxed monthly/annual amount.

Vic wrote on Dec 30^th, 2023 at 10:43am:



it may have been one of those 'win for life' scratchie things where you get a set amount every week, and the reporter is lazily just calling it all lotto.

While the winnings are not taxed, once it hits your bank account it becomes an asset. And depending on other assets may cause the pension to be stopped.

lee wrote on Dec 30^th, 2023 at 1:22pm:



Every Govt. pension is means tested.

I know someone who couldn't work after a triple heart bypass but
because he owned a little unit that he was renting out
he couldn't get a DSP  pension.

Centerlink wanted him to sell his unit and then pay the Govt capital gains tax
and then live off that money as he still wouldn't be entitled to a pension.

So - he went to the Govt. for help wanting money and
their solution was for him to give them money.

Carl D wrote on Dec 30^th, 2023 at 1:31pm:




taker mentality

learning how to be a better leaner 

lee wrote on Dec 30^th, 2023 at 1:22pm:


Yep.

Unfortunately, that's what happened 

Centrelink just looks at the balance of your account - it makes no difference where the money came from.

EDIT: Okay, I didn't actually read all of the story.

He receives the $60,000 in instalments (?).

Something doesn't add up here.

EDIT #2: Oh, and A Current Affair is involved!?

Yeah, nah.  Something isn't right.