Age Pension increases from 1 July 2023:
What you need to know
We previously reported that Age Pension thresholds will change on 1 July this year. We now know by how much and who will be affected.
Whilst the changes won’t go live until 1 July, the rates for each category of Age Pension entitlement has been released. This gives you time to consider what this means for you, depending upon the type of benefit you may receive, or hope to.
Below is a short summary of these changes, which we will follow up in fuller detail as the changes are activated on our Age Pension Entitlements Calculator.
And there’s another major change which will occur on 1 July. We previously reported that deeming rates are frozen until 1 July 2024. This remains true. But the deeming thresholds will be increased, benefiting all those whose assets are deemed to earn income by Centrelink. Watch your inbox for a full report on a full deeming rate explainer next week.
Meanwhile, here’s what we can reveal regarding income and asset thresholds:
Full Age Pension income threshold increases by:
- Singles threshold $204 per fortnight, increase is $14 per fortnight, $364 per annum
- Couples threshold $360 per fortnight, increase is $24 per fortnight, $624 per annum
(for those who receive a pension, a Work Bonus Credit of $11,800 can be added to these amounts until 31 December 2023)
Upper (Disqualifying) income threshold increases by:
- Singles threshold $2332, increase is $14 per fortnight, $364 per annum
- Couples combined threshold $3568, increase is $24 per fortnight, $624 per annum
Full Age Pension assets threshold increases by:
- Single homeowners threshold $301,750, increase is $21,750
- Single non-homeowners threshold $543,750, increase is $39,250
- Couple homeowners combined threshold $451,500, increase is $32,500
- Couple non-homeowners combined threshold $693,500, increase is $50,000
Upper (Disqualifying) asset threshold increases by:
- Single homeowners threshold $656,500, increase is $21,750
- Single non-homeowners threshold $898,500, increase is $39,250
- Couple homeowners combined threshold $986,500, increase is $32,500
- Couple non-homeowners combined threshold $1,228,500, increase is $50,000
The increase in the lower thresholds means more people will qualify for a full Age Pension than was previously the case and part pensioners could get slightly more as the taper rate kicks in later. The increase in the upper threshold means some people previously ineligible will now qualify.
Our eligibility calculator will have all these new thresholds included a couple of weeks ahead of July 1 so stay tuned for our update next week.
In the meantime …
if you have any pressing concerns about Age Pension eligibility or other Centrelink rules, you can book an entitlements consultation today.