Government Age Pension payments increased on 20 March, so if you’re one of the millions of eligible Australians, you’ll have a little more to spend.
The increases are designed to help address inflation and cost of living increases. Here’s what happened.
Here are the maximum Age Pension payment rates that came into effect from 20 March, which are paid fortnightly, along with their respective annual equivalents. Single payments rose by $19.60 per fortnight, while combined payments for couples increased by $29.40.
Fortnightly* | Annually* | |
Single | $1,116.30 | $29,023.80 |
Previous payment | $1,096.70 | $28,514.20 |
Couple (each) | $841.40 | $21,876.40 |
Previous payment | $826.70 | $21,494.20 |
Couple (combined) | $1,682.80 | $43,752.80 |
Previous payment | $1,653.40 | $42,988.40 |
*Includes basic rate plus maximum pension and energy supplements
The payment rate increased 1.8%, indexed to inflation. Payments last increased in September 2023 and are likely to change again when they are next assessed this coming September.
Tip: Depending on how much super you have, you may be eligible to receive Age Pension payments in addition to income from your super savings.
The government reviews the Age Pension income and assets test thresholds in July each year. The upper thresholds also increase in March and September each year in line with Age Pension payment increases.
Whether you are eligible for the Age Pension depends on your age, residency and your income and assets.
If your income and assets are below certain limits (also known as thresholds), you may be eligible.
When determining how much you’re entitled to receive under the income and assets tests, the test that results in the lower amount of Age Pension applies.
Here are the income and assets test thresholds that apply as at 20 March, compared with previous thresholds.
The lower assets test threshold determines the point where the full Age Pension starts to reduce, while the upper assets test thresholds determine what the cutoff points are for the part Age Pension.
If the value of your assets falls between the lower and upper assets test thresholds, your entitlement will reduce.
The higher your assessable assets, the lower the amount of Age Pension you are eligible to receive.
Your family home is exempt from the assets test but, your investments, household contents and motor vehicles may be included.
Full Age Pension limit | Part Age Pension cut off | |
Single – Homeowner | $301,750 (unchanged) | $674,000 |
Previous threshold | $301,750 | $667,500 |
Single – Non-homeowner | $543,750 (unchanged) | $916,000 |
Previous threshold | $543,750 | $909,500 |
Couple (combined) – Homeowner | $451,500 (unchanged) | $1,012,500 |
Previous threshold | $451,500 | $1,003,000 |
Couple (combined) – Non-homeowner | $693,500 (unchanged) | $1,254,500 |
Previous threshold | $693,500 | $1,245,000 |
The lower income test threshold determines the point where the full Age Pension starts to reduce, while the upper income test threshold determines what the cut off point is for the part Age Pension.
Income includes things like payment for employment or self-employment activities, rental income, and a deemed rate of income from financial investments such as managed funds, super (if you are over the Age Pension age) or account-based pensions commenced after 1 January 2015.
Income doesn’t include things like emergency relief payments.
Full Age Pension limit | Part Age Pension cut off | |
Single | $204 per fortnight (unchanged) | $2,436.60 per fortnight |
Previous threshold | $204 per fortnight | $2,397.40 per fortnight |
Couple (combined) | $360 per fortnight (unchanged) | $3,725.60 per fortnight |
Previous threshold | $360 per fortnight | $3,666.80 per fortnight |
If you have income between the lower and upper income test thresholds, your entitlement will reduce as your level of income rises.
For example, the Age Pension payment for a single person earning more than $204 per fortnight will reduce by 50 cents for each dollar earned over $204.
For a couple earning more than $360 per fortnight combined, the Age Pension payment for each person will reduce by 25 cents for each dollar earned over $360.
Tip: The Work Bonus may allow you to receive more income from working, without reducing your Age Pension.
The maximum Work Bonus balance that you can accrue is $11,800.
Source: Colonial First State
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