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Major age pension changes coming from July 1

Changes to the income and asset thresholds kick in this week.

Tamika Seeto
·Finance Reporter
Updated ·2-min read
Composite image of Australian money and Centrelink sign. Age pension payment concept.
Some Aussies will be eligible for higher age pension payments this week. (Source: Getty)

Thousands of older Aussies are set to benefit from changes to the age pension coming into effect this week.

From July 1, the income and asset thresholds that determine how much pensioners are paid will be adjusted for inflation.

This means more people will be able to qualify for the age pension. Additionally, some Aussies who were receiving part pensions may be eligible to receive the full pension payment.

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Here’s what is changing from July 1.

Pension age increasing to 67

Aussies will have to wait until they turn 67 years old to be eligible for the age pension. This is an increase from the current 66 years and six months.

The pension age has been gradually increasing over the past few years. This is the last legislated increase.

Income threshold increasing

Single pensioners will be able to earn $204 a fortnight - up from $190 a fortnight - and still be eligible for the full single pension.

Couple pensioners will be able to earn $360 a fortnight- up from $336 a fortnight - and still be eligible for the full amount.

Once this threshold is exceeded, the pension amount is reduced by 0.50 cents for every dollar over $204 or $360, respectively.

The cut-off point will be $2,332 per fortnight for singles and $3,568 per fortnight for couples.

Asset threshold increasing

Single homeowners will be able to have assets of $301,750 and receive the full pension, while single non-homeowners can have $543,750. These are increases of $21,750 and $39,250, respectively.

Couple homeowners will be able to have combined assets of $451,500 and receive the full pension, while couple non-homeowners can have $693,500. This is up from $32,500 and $50,000.

Single homeowners will be able to have up to $656,500 of assets and receive a part pension, while single non-homeowners will be able to have $898,500. This is up $21,750 and $39,250.

For couples, the cut-off threshold will increase to $986,500 for homeowners and $1,228,500 for non-homeowners. These are increases of $32,500 and $50,000, respectively.

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