Age Pension changes: Are you now eligible?
Last week we reported on the new rates of payment for Age Pension recipients. This week we can confirm that these rates came into effect on 20 March and that all Retirement Essentials calculators, including the Age Pension Eligibility Calculator and the Retirement Forecaster are updated and ready to use.
How might this affect you?
The changes are widespread. In the first instance, there has been an increase in the base rate of the Age Pension. But there have also been significant lifts in both the Income Threshold and the Assets Test limits.
If you are already eligible, you will automatically receive an increased fortnightly payment. For a full Age Pension it will be increased by $1064 for singles and, $802 each for couples). If you receive a part-Age Pension payment, your payment will reflect a ‘pro-rata-ed’ portion of the increase. The increases to supplements $2.80 (single) and $2.10 (each for couples) which will be paid to both full and part Age Pensioners
Not yet eligible?
If you are not yet eligible, things just got interesting!
The thresholds for eligibility have now been increased for both the Income and the Assets Tests. You can check your new status quickly, and free of charge, using the Retirement Essentials Age Pension Eligibility Calculator which incorporates all the latest Age Pension changes.
If you are still unsure as to your status, you can contact our Customer Service Team for further support.
Or if you feel you would benefit from more specific financial advice, a booking for a tailored consultation is also available.
The most important thing, if you are close to eligibility, is to check and apply as soon as possible. Centrelink does not back pay benefits, so you need to have applied before you can enjoy any such support, be it weekly income or the added bonus of the Pension Concession Card.
hi we are on full pension 83 and 82 pension due 20 th did not receive increase why
Hi Ken, thank you for your query! If you are receiving your payment on the 20th March then the reason there is no increase applied is because that payment is for the previous fortnight which had the old formula applied for it’s calculation. Your next payment which would be due on 03/04/23 would be calculated using the increased rates automatically with no further action required. If you believe this is not the case you should definitely call Centrelink on 132 300 to query your payment.
hi.
question why do does the government allow you to earn work bonus.
however if your super earns the same amount this is deemed an income and you pension is reduced.
retirement means you have retired..
can you claim the money you earn from super as a work bounes and it does not affect your fully pension.
Hi Carmine, thank you for replying to my comment! The work bonus can only be used to offset employment income which does include self-employment. It cannot offset other sources such as (but not limited to) the deemed income from your financial assets, rental income, defined benefits or foreign pensions. However based on your wording you may be misunderstanding how deeming works as deeming is applied to the total balance of your super to determine the income generated, the same as it does to bank account balances. The funds you draw down from super are not assessed as income. CLICK HERE to learn more about deeming.
Does Centrelink only consider the preserved benefit of your super or the overall amount?
Hi Peter, thank you for your comment! Centrelink consider the full balance of any/all superannuation. The only exception is if your partner is both under Age Pension age and their super is still in accumulation then the total balance is exempt from assessment.
Me and my wife got rejected on age pension recently as where we live now is 40acers witch we own 25% (10 acres) Centrelink use that as a asset witch puts us over threshold with all other assets added up we would be elegable how can get around this we have lived here 11 years
Hi Dennis, thank you for your question! Based on your explanation it does not sound like Centrelink have erred and your assets legitimately exceed the threshold so there is no ‘getting around’ it. Your assets will reduce over time and the thresholds will likely increase so you can re-apply for the Age Pension later. In the interim, if you do not already have them, I recommend you and your wife apply for the Commonwealth Seniors Health Card to help reduce your expenses as there is no assets test for this card.
Superannuation funds are taking a hit presently. Would my pension payment be increased if I amend my assets value on their website or do I have to wait until their next review?
Hi Michael, great question! You can proactively update Centrelink on the balance of your assets, you do not have to wait. You will need to provide supporting evidence though so best to call your super company and ask them for an updated proof of balance/statement/schedule etc.
My husband and I have lent some money to our son. When we applied for age pension, this loan amount was also included as our assets. Our pension application has been rejected due to the assets being above the threshold limit. Now we want to purchase a home for ourselves. Can we buy our son’s property for repayment of the money that he has owe us? In this case will the loan amount be decreased from our assets and we can reapply for the age pension?
Hi Mary, thank you for sharing your situation! In theory yes, the scenario you have put forward should be accepted by Centrelink to consider the initial loan/gift to your son as repaid however we have not come across this before to know for certain. You may wish to call Centrelink on 132 300 to verify it with them before you make any big decisions.
Why do you and the media continue to report this pension increase incorrectly.
The bald headed git in charge of Centrelink has already stated publicly that the increase will be calculated and applied to pensions from the 28 March 2023 not the 20 March 2023.
So if you get your pension today then on the 4 April 2023 you will receive the increase announced for the days 28 March to 4 April. It will not be until the 18 April that you will receive you full fortnightly increase.
On another matter why does Centrelink encourage/insist we update changes to of assets and liabilities online. When you do so are given a receipt to say that your submission was successful; but any changes to your pension payments will be advised after they have finalised it.
Fair enough but how long does this take, my last update completed online and acknowledged was on the 4 Jan 2023 but no adjustments to my pension have been made.
I have made several attempt’s to amend this submission as my super balance has had large changes over the past two months but the system does not allow me to advise Centrelink of these changes (as per Government’s requirements) until my previous submission has been processed.
Last time I waited 3 months before requesting a personal interview and had the matter attended to in 5 minutes. But if any additional payment was due to you then you don’t get any back pay.
So why ask/demand you complete changes online if Centrelink never process the new information after they acknowledge and give you a receipt confirming they received the updated information.
Hi Robert, thank you for your contribution! You are right in that Centrelink are often slow to action income/asset updates however it shouldn’t take them more then 3 weeks at most. If it takes longer then this you should call them on 132 300 as something has gone wrong. Most likely the issue is that Centrelink require a supporting document as evidence of the change but haven’t necessarily notified you of this which is why the changes never appear to get actioned.
Steven
You are right, Centrelink are often slow to action income/asset updates
My partner and I had to update our information and we were told it could take 12 months, if I write them a letter, before someone actually gets around to “fixing” it. So in the end we went into the local Centrelink office with all our paperwork only to be told that we needed to update our income and assets stuff online ourselves. It appears they only action stuff immediately if they have requested information from you. Also they are not consistant. Over the course of a week , we spoke to 3 different people and they all gave different options of what to do, some contradicting the others. I am 71 years old and really cant be worried about stuff that they are paid to do. Luckily I am a bit computer savvy, but I feel for those pensioners who find computers a nightmare. Why cant Centrelink make the system easier for us to use. When I first applied for the pension it took me nearly a whole day to do the reams of paperwork only to find I had to repeat the whole thing again when my partner became eligible for the pension. I can understand why some people say, agh stuff, it it’s too hard.
Hi, I am still working (64), but my wife retires very shortly 66.5, will she be eligible for a pension, we own our home & have minimal super.
Hi Gerry, thank you for reaching out! The best way to confirm your eligibility is via our free, online eligibility calculator HERE.
At what age can you receive the pension, I’m 66 on the 1st of April can I start doing the paperwork that is required
Hi Trevor, thank you for reaching out! Based on your age you will become eligible for the Age Pension next year when you turn 67. You can apply 13 weeks prior to turning 67 to allow time for the claim to be assessed and approved so you can start getting pension payments once you turn of age. For you that would mean you can start the process from 01/01/2024.
We can all learn something from the experience of others so here is a little information based on personal experience…
I recently updated my assets on line using the My Gov portal. I had added a bank account and transferred existing funds into that account from an existing account. As I opened the account on the 9th March but did not update my assets until the 20th March the software credited me with my original accounts and balances plus my new accounts plus the funds I had transferred for an 11 day period between the 9th and 20th March. This meant I had additional assets on paper and as a result my next aged pension payment was reduced, I know it sounds absurd but it is what happened and thanks to a very friendly Centrelink Services Officer the situation was explained and problem fixed.
The moral to this story is if you make changes to your financial situation and plan to update on line complete the update on the same day you make the changes.
I holidayed in the Philippines and was forced into lockdown. l was unable to return to Australia for 2 years. On my return l applyed for my pension which I am now receiving however my portability on my pension was stopped for 2 years being out of Australia for so long. COVID I am told is no excuse. It’s unfair and l would remind you l heard gov. Morrison telling Australians to stay where they are if it’s safe until COVID could be bought under control. l done what was asked and am paying the price. It’s wrong and there is nothing l can do. l will leave Australia when my 2 years is up and never return to county for what they have done. So much for retirement after 45 years of working and calling Australia home.