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:

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?