From www.smsfadviser.com: Recent legacy pension reforms allow non-commutable pensions to be commuted without Centrelink implications if they lack asset-test exemptions.

However, if a non-commutable pension has an asset-test exemption, it may face Centrelink reassessment, potentially resulting in a debt for overpayment of age pension benefits.

A statutory instrument has been introduced to mitigate some issues caused by these reforms, including waiving debts arising from reassessments if the affected pension is fully commuted within a designated timeframe.