Will you now get more?
On 1 July three important Age Pension limits will change. These changes will affect all full Age Pension and part-Age Pension recipients as well as all those who are yet to qualify.
The changes were announced on 12 June by Minister for Social Services, Tanya Plibersek. The Minister described the changes as further ‘cost of living relief’ for more than 2.4 million recipients of social security payments. The rates, thresholds and limits are increasing by 2.4%, says Ms Plibersek, to ensure they keep pace with the cost of living (with the CPI rising by 2.4% in the year to 31 March).
Here’s a brief overview of the different thresholds and how they have been increased.
INCOME LIMIT INCREASES
Full Age Pension income free limits:
| Previous per fortnight | New per fortnight | Increase per fortnight | New per annum | |
| Single | $212 | $218 | $6 | $5,668 |
| Couple (combined) | $372 | $380 | $8 | $9,880 |
Part Age Pension income disqualifying limits:
| Previous per fortnight | New per fortnight | Increase per fortnight | New per annum | |
| Single | $2,510 | $2,516 | $6 | $65,416 |
| Couple (combined) | $3,836.40 | $3,844.40 | $8 | $99,954.40 |
ASSET LIMIT INCREASES
Full Age Pension Asset free limits
| Previous amount | New limit | Increase | |
| Single homeowner | $314,000 | $321,500 | $7,500 |
| Single non-homeowner | $566,000 | $579,500 | $13,500 |
| Couple homeowner (combined) | $470,000 | $481,500 | $11,500 |
| Couple non-homeowner(combined) | $722,000 | $739,500 | $17,500 |
Part Age Pension asset disqualifying limits
| Previous amount | New limit | Increase | |
| Single homeowner | $697,000 | $704,500 | $7,500 |
| Single non-homeowner | $949,000 | $962,500 | $13,500 |
| Couple homeowner | $1,047,500 | $1,059,000 | $11,500 |
| Couple non-homeowner | $1,299,500 | $1,317,000 | $17,500 |
Deeming thresholds
| Previous amount | New limit | Increase | Deeming rates | |
| Single | $62,600 | $64,200 | $1,600 | Below this amount 0.25%,Above 2.25% |
| Couple (combined) | $103,800 | $106,200 | $2,400 | Below this amount 0.25%,Above 2.25% |
At this stage it appears that the current deeming rates (in table above) will remain frozen. Changes to these rates are made at the discretion of the Minister, so this can be announced without prior warning.
Cost of living relief
It’s often easy to dismiss small increases such as the $6.00 per fortnight income limit increase for singles, for example. But this amounts to $156 over the course of a year and this could be the difference between urgently needed medical appointments, fuel for a weekend getaway, or the ability to go to the cinema more regularly. When the prices of basics such as insurance, energy and health services continue to increase, it can be stressful to try to cover the essentials without even thinking about special treats. Because the Age Pension, by legislation, must be indexed in March, July and September, it does stay in touch with overall price increases.
What do these changes mean for you?
If you currently receive the maximum amount of the Age Pension
You can now receive a little more work income before the taper rate starts to reduce your payments, subject to any Work Bonus credits you may hold. The value of the assets you can hold has also been increased.
If you are on a part-Age Pension
The disqualifying limits for both assets and income have increased, meaning more people will stay on the Age Pension. You may also receive slightly more due to the deeming threshold changes.
If you previously missed out or are yet to apply
It’s well worth your while checking your new entitlement status as you may have moved into the ‘qualifying zone’. This can be done by using the free Retirement Essentials Age Pension Entitlements Calculator. But not today! (see following)
Next steps
The Retirement Essentials Age Pension Entitlements Calculator is always totally up to date with all Age Pension limits, thresholds, rates and rules. So for calculations which take these new 1 July changes into account, you will need to check on or after this date.
The good news is that we will remind you with a prompt in the Tuesday 1 July enewsletter, with links to the calculator and other handy information so you can easily bring yourself up to speed with your new situation.
More assistance needed?
If you have a burning question about these changes, please go ahead and share it in the comments section below. We learn a lot from our different members feedback.
If you feel you need support to better manage your own application or to maximise your entitlements, Retirement Essentials Customer Services Team is ready and keen to work with you.
