Biggest increase in 12 years
Last Monday the Minister for Social Services, Amanda Rishworth, announced the largest increase in the Age Pension for 12 years, effective September 20. The full range of welfare increases will affect 4.7 million Australians.
The new indexed rates show a substantial lift of $38.90 for singles and $29.40 each for couples. The maximum rate of Age Pension will increase to $1026.50 a fortnight for singles and $773.80 for each member of a pensioner couple or $1547.60 per couple (including both pension and energy supplements).
The reason for such a large increase is because it is based upon the Consumer Price Index (CPI) which was higher than the alternative index benchmark, the Pensioner and Beneficiary Living Cost Index. (PBLCI) over the last quarter. Increases have also been made to some Age Pension thresholds and to certain supplements.
To cut to the chase, what does this mean for you?
If you are already on an Age Pension, you just got an increase. This will come through in your first payment after September 20, 2022.
If you previously missed out, the changes to income and assets thresholds mean you may now qualify under the new thresholds from September 20th.
If you are self-funded and believe you still will NOT qualify for the Age Pension, you are highly likely to soon qualify for the very valuable Commonwealth Seniors Health Card (CHSC). The legislation increasing access to this concession card will most likely become law during the current sitting of parliament, with the new rules also starting on September 20. This means that single retirees who earn less than $90,000 per year and couple households earning less than $144,000 will become eligible. This is a big deal as nearly all self-funded retirees will now qualify for a CSHC. Is this you? If so, how quickly will you apply? You can read more about this proposed change here.
Another change to the Age Pension was announced by the Albanese Labor Government at the Jobs and Skills Summit. This means that recipients of the Age Pension and Service Pension will now be able to earn more without having payments reduced. This is covered in today’s enews update as well.
Overview of Age Pension Increases 20 September 2022
| Single | Pre 20 Sept | September 20, 2022 | Increase per fortnight |
| Base | $900.80 | $936.80 | $36.00 |
| Supplement | $ 72.70 | $75.60 | $ 2.90 |
| Energy Supplement | $ 14.10 | $ 14.10 | – |
| Total | $987.60 | $1026.50 | $38.90 |
| Partnered (each) | Pre 20 Sept | September 20, 2022 | Increase per fortnight |
| Base | $679.00 | $706.20 | $27.20 |
| Supplement | $ 54.80 | $57.00 | $ 2.20 |
| Energy Supplement | $ 10.60 | $ 10.60 | – |
| Total | $744.40 | $773.80 | $29.40 |
Whilst increases to the Age Pension are always welcome, they can also be confusing. If you would like some support to better understand how the new rules will change your situation, we’d be delighted to assist in a one-on-one adviser consultation.
And if you are one of those self funded retirees tell us what you think about the new CSHC thresholds, and will you quickly apply for the card?
Hi. Thanks for detailed update re 20th Sept increases. As a long retired proof reader may I point out a small error in your comparison table re “Overview of age pension increases 20 Sept 2022- Partnered section.
The current full pension for a couple is $744.40 / fortnight each (which is the total of the individual components shown) not $729.30.
Other than that, many thanks for all your work in clarifying the proposed increases.
Thanks Tony
What is the increase for a couple separated by illness ?
Hi George. Thanks for the question. Partners separated by illness receive the same as singles so a total of $38.90 increase a fortnight including the supplement.
Centrelink has advised my payment is only going to 918.80 Base rate not 936.80 as you have stated. Do you know if there is a reason for this
Hi Ken. The base rate for a full Age Pension is $936.80 plus supplements. The becomes effective from September 20th 2022. I don’t know your specific circumstances but one possibility is you may not be eligible for a full Age Pension.
Do you have to be a retiree to be eligible for the CSHC
Self funded retirees earning under 144K earnings are eligible
Me 69 years old still working earning $110K
Partner 70 years old not receiving benefits
Are we entitled for the CSHC
Hi Frank. The new thresholds which are currently being considered in the Senate will be $144,000 for a couple. In addition to your$110k salary you will need to include any deemed income on account based pensions, for both of you, plus any other income on your tax returns. If all of this is combined is below the new $144,000 threshold then you will be eligible when the thresholds come in.
My Spouse is thinking of applying for a CSHC card.She is not eligible for a pension as i am still working.I am aware that my super will not be counted as income or assets as i am under eligibility age for pension.Just wondering if they will deem my super when she applies for it. Cheers……..
Hi Steve. Centrelink will deem any income on your account based pension if you or your spouse has one.
Hi James does this outcome make a difference if i cant access my super because i am under preservation age of 60.My spouse is currently drawing down her super at $600pw. Is this 600 counted as income or not.As asking before will my super be deemed against CSHC card application.Spouse fully retired but cannot get pension because i am working
Hi Steve. In your situation your super won’t be deemed for the CSHC application but your salary will be included in the income test.
Cheers
Can time spent in compulsory lockdown overseas impact on residency status for age pension?
Yes it could. You need to meet the residency requirements. Centrelink may make exceptions in circumstances such as yours but there are no guarantees.
Hi I am currently receiving a part pension of $414.43 per fortnight as my partner is still working ,approx how much extra should I receive after Sept 20 regards Gary
Hi Gary. Unfortunately I can’t answer that as I don’t know which of the tests (assets or income) is impacting your eligibility or the make up of those assets /income. the best way to find out is to use our eligibility calculator which will give you an indication of what you should receive.
Never got anything like that. $16.05 was our aged pension increase as of 27th Sept 2022