Last week the expected increases to the Age Pension were published by Services Australia, the government department responsible for indexation of the Age Pension every March and September.
You may recall last December we predicted that Age Pensioners would receive an increase of $27 for singles and $20 (each) for couples. Rising inflation means that we were a little modest in those predictions, which means that those on the full or part Age Pension now stand to gain more. Including supplements, singles on a full Age Pension will receive an additional $37.50 per fortnight and couples an additional $28.20 per fortnight each.
The thresholds have also increased
From March 20th the means test thresholds will also increase meaning many people that just missed out on qualifying for the Age Pension could now be eligible.
The upper(disqualifying) income threshold has increased by:
- $75 a fortnight for a single person and
- $112.80 a fortnight for a couple
While the upper (disqualifying) assets thresholds have increased by:
- $12,500 for a single homeowner or renter
- $19,000 for a couple homeowner or renter
- You can check all the new rates and thresholds here
Will this affect you?
The effect on individuals varies.
For those who have already qualified, there is little to do except accept the extra cash which will be paid to you in your first fortnightly payment after March 20 this year.
Those who have come close to qualifying in the past may now be over the hurdle.
New, higher, income and assets tests will be in place and thus you may now become eligible. Our eligibility calculator has already been updated with all the new rates and thresholds so you can check what you will be eligible to receive here.
You can see all the new rates here.