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.
the assets test goes up by 7,500 and property value goes up by 30,000. so the pension goes backwards again.
That’s right. It is Elder Abuse.
Since the house you live in is not part of the asset test any increase in house value is not relevant unless you have investment properties.
I think the increases are pitiful. Government is completely out of touch with cost of living increases. Around 2000, the lower threshold on the Assets Test approximately equated to the cost of buying an ordinary 3 bedroom, 1 bathroom home. Now it would not even buy half a block of land to build it on or a tiny very run down unit in a dreadful location.
Could you please give details for people who receive a pension from DVA, as this is different from getting your pension from the Government.
Hi Karen, in our experience the DVA have been very helpful and reliable for help regarding their pension payments so we recommend you contact them directly on 1800 VETERAN (1800 838 372).
“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.” Possibly the silliest comment I’ve read this year.
Hi Rocco, thanks for your thoughts. I’m sorry if this came across as silly – it certainly wasn’t intended that way. I’m very respectful of not being dismissive of small amounts of money as what seems small to some can be really helpful to others. Additionally, changed asset limits add further dollars in payments, so I still believe that every little bit counts, warmest, Kaye
I totally agree! $156 a year increase is not even noticeable. This comment is actually embarrassing and says a lot about our pension in Australia!
The changes to the assets thresholds are welcome and could have a positive effect for many.
I have not increased the rent on my property investment for three years. My good tenants could not afford the market rent if I increased it. If I evicted my current tenents it would put them and two children on the street. I could not in conscience do that. The asset value is of no interest to me. The increased allowance on my property for the assets test does not recognise the ridiculous increase in the selling price. Currently I am saving the community. (One less family put in penury and insecurity.) Only a reduction in my income but I am not surprised. Greed is the cause of misery.
Good on you David. There are people out here who admire you for contributing so much to the community by ensuring housing for a family.
The governments do not always cost social capital in budgets but your contribution could save millions in future just by keeping one family safe. ( e.g. the cost of people in prison/institutions or on welfare)
The government is ripping us off
Cost of Living was the Policy of Choice for the 2025 Federal Election. 3.7 million households in Australia can no longer afford to put a meal on the table at night, interest rate hikes, galloping inflation and food, energy and fuel prices souring over the last 3 years; Pensioner Couples just got a miserly $7 combined increase from the last CPI increase.
Hardly enough for any pensioner still renting and now 75% of them living in poverty.
The means tests on Australian Pensions should go and the administration savings would be immense. Don’t forget the inability of Human Services to even answer a phone call. ABS Data from 2023 shows they missed 11 million calls that year. What a shocking failure!
Cost of living relief…..$3.00 a week!!! I am quite convinced that the politicians of today are not living in the real world. It is actually rather embarrassing. Just another ripoff!!! We have paid our taxes all our working life and that is the thanks?
$3 a week!! Pathetic, our house & contents insurance has just gone up $600 from $2000 odd to over $2660. We had to make a small claim thanks to cyclone Alfred. Yeah, $3 a week will make a big difference…..NOT