Regular scheduled changes to the Age Pension will occur on 1 July. There are other changes as well which will have an impact on retirees and their income over the next 12 months. Here’s our end of financial year checklist to help you plan ahead. Spoiler alert: we do not yet know the extent of all these changes – some as noted are yet to be announced. But forewarned is forearmed, so keep an eye on your inbox as we fill in the gaps in what is happening in the next financial year.
Income and Asset thresholds will change
The upper (disqualifying ) income and asset thresholds changed on 20 March, in line with indexation. The lower thresholds are now due to change on 1 July which is likely to increase the number of people eligible for a full Age Pension.
We await the new limits (and will report on them as soon as they are published), but as an indication, last year the income test limit was increased by $14 for singles and $24 for couples combined while the asset test limit was increased by $21,750 for singles and $32,500 for couples combined.
Plan ahead
You can check out the current thresholds here and use the Age Pension Entitlements Calculator to test your current status. You may well be entitled to a higher fortnightly payment after 1 July. Or if your entitlement is currently borderline, you may now become eligible and there automatically receive a Pension Concession Card as well.
Age Pension age
Last year was the final year for the legislated increases to Age Pension age, which is now 67. There is no legislation to further increase this age.
Plan ahead
If you are aged 65 or over it is helpful to be aware of your likely Age Pension eligibility. You can do this easily by using our free Age Pension Entitlements Calculator.
Changes to Deeming rates
These are normally reviewed on 1 July each year and changed at the discretion of the minister. For the past few years they have been frozen due to assumed impacts from the Covid pandemic. This freeze was scheduled to end on 30 June 2024 but has now been extended until 30 June 2025.
Changes to superannuation
We summarised all expected EOFY super changes in an article on 18 April, including the Super Guarantee (SG), and concessional and non-concessional contributions, – you can review this information here.
Super drawdown rates
Because these were halved during the pandemic and the changes were scheduled to match the financial year dates, many retirees wonder if their drawdowns will also change on 1 July. The withdrawal amounts are based upon your age. The most important thing is to ensure you have met the minimum amount as there may be penalties if you have not complied.
Plan ahead
It’s always good to plan at least a year ahead when it comes to managing withdrawals from your super. Retirement income streams should not be a ‘set and forget’ proposition. Why not use the end of the financial year as a helpful prompt to check last year’s super statement? Look at your returns, your investment settings and any withdrawals, and use this information as a base for forward planning, with an eye on mandated withdrawal amounts.
You can check the Retirement Essentials Age Pension Entitlements Calculator for free here.
Or you may have some more specific questions that you want help with to determine how an alternative strategy could affect your financial position and your ability to achieve your goals. Retirement Essentials offers adviser-led strategy consultations on a range of topics, including:
- Retirement Forecasting (look at what your income, assets and spending could look like over your retirement).
- Understanding more about super (get the most out of your super in retirement).
- Maximising your entitlements (making the most of your financial resources and Centrelink)
- Understand impacts of your home mortgage (assess the benefits of repaying, or maintaining your mortgage?)
Are you feeling financially fit for EOFY?
Do you find these rules a burden?
Or do you treat them as ‘situation normal’ and just get on with your life?
Hi, my name is Michael. I’m 63 years old and I’ll be 64 in September. My retirement age is 67. I was in the Philippines in 2020 and was caught up in the lockdown here. I was originally there for a break of 3 weeks. I had recently separated and left my family home and then I had a double brain bleed. My friends offered a few weeks away about a year after my medical condition was controllable and I said ok. I didn’t get a clearance to work again because I have been having constant relapses if I push myself too much. The government hasn’t helped me in any way with any payments for anything as I was in the Philippines in lockdown on an island. While I was there I met some great people and not knowing how long I would be there I remained in the background. I got good and cheap help from people while I was in relapse and in the end I was there for 2 years and 9 months. I organised a medical report and the government said I need to be in Australia to receive any help payments. I was born here in Australia and worked here all my life and I don’t understand how they don’t acknowledge this. And they said I have to be in Australia 12 months and 1 day before I retire at 67 to qualify for the pension. How can this be and is it actually true?
Hi Michael, I’m so sorry to hear about your ill health. I hope you are feeling well. There is a lot of confusion around the rules that you are referring to. Generally, someone can apply for the age pension (if they are previously eligible because of residency, so the fact you were born here should satisfy that) as soon as they return to Australia, however the issue is that they must have the intention to remain in Australia permanently which Centrelink will scrutinise more closely if you have only just returned. To ensure people are being honest about this they then put in place a guideline that to keep your pension you can’t leave Australia for 2 years after approval if you’ve just come back. However, if when you apply for age pension you have been primarily a resident of Australia for the two years prior to application then you should automatically receive age pension ‘portability’, meaning you can continue to receive age pension even if you subsequently choose to relocate. The rules are complex and confusing, if you want some clarity relating to your individual situation I would recommend an Entitlement Consultation, where you can speak to someone directly to help explain how the rules work. Best of luck, Nicole.
So are you back in the country now ? you would be able to apply for job seeker now, possibility even DSP, you can’t claim a payment if you are outside the country this is true, nor are you entitled to be back dated anything as you can only be back dated from date of claim. Now assuming a) you are still separated you would be treated as a single person, if not you will be treated as couple and that persons income will impact your payments,
I think you meet the qualifying measures for the age pension (at 67) but will obviously depend on your super/ assets/ income martial status…
But you most certainly are not entitled to a payment whilst you were in the Philippines,
I assume you had some form of travel insurance prior to leaving the country which you may of been able to make a claim on.
Being 59 at the time of your 3 week holiday, and I assume unemployed the only payment would of been jobseeker, but that payment isn’t payable for people overseas as it is paid for people to look for work, not for holidays… but again your travel insurance would of assisted
Is it true that the pensioners will get one off payment of $750.00, in addition to $300.00 electricity bill support? If so, when?
I would appreciate if you would highlight briefly.
Thank you.
Robert Kaya
Hi Robert, once the budget was released there was no suggestion of a one-off payment unfortunately. I think this may have been briefly reported/speculated on prior to the budget announcement and this is where the confusion has come in. We recently provided an article about what was included in the recent budget that could impact senior Australians. All the best, Nicole.
would appreciate to know my situation.
aged 71yrs
income 95000.
How much can i earn to receive my full pension.
My wife is 64yrs and earn 32000/yr
likewise what is her situation pl
Hi Bonnie, there are a number of factors that go into the calculation of assessable income so we would need more information before we could provide guidance on your situation. We have a lot of information available on our website as well as our free age pension eligibility calculator. If you want to talk to someone one-on-one to discuss your individual situation in detail I would recommend an entitlements consultation. All the best, Nicole.
May I ask a question please. ? We are part pensioners who own in a family trust a commercial property. Our part pension as calculated on our income not assets as apparently assets are within the allowable levels. our income plus depreciation from our assets and a couple of other small items determine the amount of pension we receive
Can you advise the amount of income we’ve are allowed before we lose any pension entitlements?. and our pension ids discontinued My self and my wife both in our 84th year. Lionel Lusty. llus@bigpond.com
Hi Lionel, thanks for reaching out. We have lots of helpful information on our website, including eligibility rules and relevant thresholds so you will find some helpful information there. If you are still unclear and you want to talk to someone directly about how the rules work in your particular situation I would recommend an entitlements consultation. All the best, Nicole.
i am 75 why cant i get a pension ihave paid tax all my life
our property could be borderline for requirements for an age pension can we get a valuation in case i am wrong and the value is a lot lower which entitles my wife and I to a part age pension
Hi Steven, if you are talking about a situation where the land around your home exceeds 2 hectares then often the council land valuation (usually appears on the rates notice) is used as evidence of land value, and then the proportion of the land value exceeding two hectares may be an assessable asset. If you believe that this overestimates the actual market value you could obtain a private valuation for your own piece of mind and you could potentially submit this through with an age pension application. However, it doesn’t mean Centrelink will accept this valuation. They may send their own valuer out.
If you are talking about an investment property valuation then you can obtain your own private valuation for piece of mind before applying.
However, Centrelink will only ever have a valuation completed if it is deemed necessary for the purposes of assessing an application so you still need to submit a complete age pension application before a valuation would be ordered. Best of luck, Nicole
Are there any changes to the downsizing rules, selling our house on acres to a smaller place
Hi Greg, there have been no recent proposed changes to the downsizer rules, the ATO website can be the most accurate source of truth about how these rules may work. The last change to the downsizer rules was decreasing age eligibility to 55 from 2023. If you are thinking of downsizing and want to understand the broader financial implications as well as how these and other rules may apply, I would recommend a strategy consultation. Best wishes in your new home, Nicole.
My rent is going up on 1june by $75 per week
Is there more available thru centrelink
Hi Marilyn, thanks for reaching out. If you advise Centrelink of the increase in the rent then there could potentially see a small increase in your rent assistance payment. However, most of the time with rent at the levels they are, often people are already receiving the maximum. If this is the case you may not be eligible for any more. If your currently fortnightly rent assistance exceeds the ‘maximum fortnightly payment’ as listed on the Services Australia site then unfortunately it is likely you won’t be eligible for a further increase. There has been a recent budget proposal to increase rent assistance by an additional 10%, but this is yet to be legislated. I will keep my fingers crossed this goes through as it may not be much but I know that every little bit helps. Best wishes, Nicole.
Hi I’m on a defined benifit and Allocated super fund pension, I am 67 , am I untitled to any consession card at all especially the health card.
Hi Shane, thanks for reaching out. This will depend on your level of income, some details about your defined benefit, and some other things. I would recommend an Entitlements Consultation to work through how eligibility works and consider whether or not you could be eligible for any support. Best wishes, Nicole.
Hi there, I have been receiving a Part Age Pension for several years- A small base pension approx $33/ft plus Pension Supplement $84/ft and Energy Supp $14/ ft.
Recently my income has risen above the ft limit to receive any base pension. However C/l still pays partial PSupp plus the full $14 ES. The total per Ft is $58. Since I do not receive any base Pension, will I continue to receive partial pSupp plus Energy Supp, even tho I will not receive any Base Pension?I thought any entitlement to PSupp and Esupp would cease if I no longer qualified for any Base Pension.
I have been continuing to receive the $58/ft for 4 or 5 fortnights.
Hi Graham, generally speaking you are correct that being ineligible for any base pension would also mean you are not eligible for any supplements either. I would recommend you call Centrelink on 132 300 to clarify the situation because if there has been an error on their end they can and will ask you to repay the amounts given incorrectly.
I have retired in January 24 and now receiving income from a defined benefit public service superannuation scheme . I am below the maximum income cut off threshold for a part pension and below the asset test threshold
I was full time with a senior salary and I received a significant unused leave payment in Jan. (one benefit from Covid lockdowns)
At what date is my income assessed for a part age pension? When I retired? When I apply ? or July 1 this year in the new financial year?
Hi Paul, great question. It’s something that confuses a lot of people. Unless you are self-employed, and are intending to continue self employment, Centrelink is generally only interested in what you are earning now and what you are likely to earn moving forward. They don’t care what you earned last year, or about the leave payout you received (note there are potential exceptions to this for compensation payments, particularly if they are ongoing, and this is definitely a different story if you are applying for an income support payment that is not the age pension, so I’m just noting the simplest scenario). At application time you will need to provide a statement for your defined benefit income, and all your existing other current income and assets and these will form part of your assessment. Hope this helps, Nicole.
How much does your retirement entitlement consultant charge the fees for straightforward calculations based on when I am retired and my wife is working? Our facts regarding residency, assets, and income are well described.
Hi Ramesh, please CLICK HERE to review our consultation options and applicable fees.
How much can an aged pensioner earn a year I believe it was changed from $7800 to $11800 but I only get $300 per fortnight work bonus which equates to $7800 can you follow this up as I have contacted my local MP and they agree that it was changed to $11800 but have no idea when it will made a permanent thing
Hi Bob, thanks for your question. This really is a tricky one. Most articles will reference the $11,800 but the way it all works is a little more nuanced than that. The standard of $300 per fortnight of work bonus will continue to apply, which works out at $7,800 a year. If no employment income exists to offset, then each fortnightly amount accumulates with the opportunity to be used to offset future employment income, building an unused concession balance. At any given time you can now have a total unused concession balance of $11,800 (an increase from the previous limit of $7,800), sometimes referred to as a work bonus ‘bank’. The changes last year provides $4,000 to the unused concession balance of all new eligible payment recipients on commencement. Those already on a payment received this increase in concession balance last December. So, for the first year it is true that you could potentially earn up to $11,800 over the course of the year before your employment income may be assessable. However, the following year, having exhausted your unused concession balance of $4,000, plus earning $7,800 over the year so not providing an opportunity to build further, you would be back to having $300 per fortnight of employment income ignored under the standard work bonus. If you are already a recipient you can check your work bonus balance through Centrelink and these are the additional employment income amounts that are available to offset future income, on top of the $300pf concession you will continue to receive. The explanatory memorandum at the time stated “From 1 July 2024, eligible recipients will be able to receive a “top-up” payment to a maximum of $4,000 once every two years”. So it may not be a one-off, but it’s not year on year that you can consistently earn the full $11,800 and have these amounts ignored and we have yet to see this ‘top-up’ in action. Hope this helps provide some clarity, it is obviously a very complex change. If you want to discuss how this may all impact your individual circumstances I would recommend an entitlements consultation. All the best, Nicole.
I’m turning 61 and planning to retire from working next year. Though I’m not eligible for age pension until 67, if I plan to visit and stay with my aged father overseas, how long am I allowed to stay with him overseas without jeopardizing my age pension and residency/citizenship in Australia? Would i get the age pension at 67 if i come back every 6 months or less back to Australia? And if get to 67,how long can i stay to be able to go back overseas to care for my aged father?
Hi Rose, the residency rule is that you need to have been living in Australia as a citizen/permanent resident for at least 10 years and 5 of those years must have been consecutive. So long as you meet that then you can travel abroad in the years prior to turning 67. If however, you have been living overseas (actually living, not just holidays) in the 2 years prior to turning 67 then once approved you will need to remain living in Australia for 2 years from your return date before leaving again.
I recieve full aged pension have not recieve inctease from 1st of july 2024