Australians on the Age Pension are set to have a bit more breathing room under changes being actioned in a few weeks. Not only will their payments go up on September 20 to keep pace with inflation, but also the cut-off limits for the income and assets tests.

This will mean that the 2.6 million pensioners will be able to have slightly more money coming in or higher-value assets than before. Tanya Plibersek, Social Services Minister, said these adjustments ensure the welfare system remained "grounded in fairness".

“We’ll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind," she said.

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What are the upcoming changes to income and assets test thresholds?

At the moment, if you're single and earning more than $2,516 per fortnight, you won't be able to access the Age Pension at all.

From September 20, the limit for the part pension will increase by $59.40 to $2,575.40 per fortnight.

For couples, the combined fortnightly salary threshold will go up by $89.60 to $3,934.

The full pension rate will remain unchanged. Single people can earn up to $218 per fortnight, and couples can earn up to $380 combined.

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A single homeowner will also have a $10,000 boost to their assessable assets for the part pension.

Assets can be financial investments, superannuation, real estate, home contents, shares, gifts and others.

These people will be able to have up to $714,500 in assets, while non-homeowners will be able to have up to $972,500.

Couples will get a $15,000 boost to their assets for the part pension. Homeowners can have up to $1,059,000, while non-homeowners can have up to $1,332,000.

The full pension rates for the assets test will also remain unchanged.

Single homeowners can own up to $321,500 in assets, while single non-homeowners can own up $579,500 in assets.

Couples who own their homes can have $481,500 in assets, and non-homeowners can have up to $739,500 in assets.

Age Pension rates are going up but deeming rates will be unfrozen

The amount pensioners receive will also go up on September 20 by nearly $30 per fortnight.

When you include the supplement and energy supplement, the payment for single people will go from $1,149 to $1,178.70.