Yahoo Finance Huge Centrelink age pension changes coming into effect on July 1
The age pension income and asset test thresholds are increasing next week.
Thousands of older Aussies stand to benefit from key changes to the age pension coming into effect on July 1. While the pension rates themselves are not going up, the changes mean some Aussies could pocket higher payments.
To receive the age pension, you need to be 67 years old and pass an income test and an asset test. From July 1, the thresholds for these tests will be going up with inflation.
That means people will be able to earn more and have more assets before their payments are affected. It also means some people may be able to qualify for the age pension who hadn’t previously, while some who were on part-pensions could be eligible to move to the full amount.
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This will all depend on your personal circumstances, so here’s a breakdown of the exact changes happening on July 1.
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Income test changes
Single pensioners will be able to earn $212 a fortnight - up $8 a fortnight from $204 - and still be eligible for the full single pension.
Couple pensioners will be able to earn $372 a fortnight - up $12 a fortnight from $360 - and still get the full amount.
Once this threshold is exceeded, your pension amount decreases by 50 cents for every dollar over $212 and $372 respectively.
The maximum amount you can earn before your pension is cut off completely will now be $2,444.60 per fortnight for singles and $3,737.60 for couples.
Asset test changes
Single homeowners will be able to have assets of $314,000 and receive a full pension, while single non-homeowners can have $566,000. That’s up from $301,750 and $543,750 respectively.
Couple homeowners will be able to have combined assets of $470,000 and get the full amount, while couple non-homeowners will be able to have $722,000. That’s an increase from $451,500 and $693,500.
For part pensions, single homeowners will be able to have assets of up to $686,250, while single non-homeowners will be able to have $938,250. These thresholds are up from $674,000 and $916,000.
Couple homeowners will be able to have assets of up to $1,031,000 and still receive a part pension, while single non-homeowners will be able to have $1,283,000. These thresholds are up from $1,012,500 and $1,254,500.
Deeming rates
Deeming thresholds will also be indexed on July 1. This comes on top of the government freezing deeming rates at 0.25 and 2.25 per cent for another year to June 30, 2025.
Deeming is used by the government to work out your income from your financial assets. The government assumes your assets earn a set rate of income, regardless of what they actually earn. This is then used to determine your income and work out your payment rate.
For singles, the first $62,600 of their assets will be deemed as earning 0.25 per cent. That’s up from $60,400.
For couples, the first $103,800 of their assets will be deemed as earning 0.25 per cent. That’s up from $100,200.
Anything above these thresholds is deemed as earning 2.25 per cent.
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