Starting July 1, 2024, Centrelink made changes to the age pension rules to help older Australians. Although the basic pension amount isn’t going up, the income and asset limits are higher. This means many pensioners will get more money, and more people will qualify for the pension or move from part to full pensions. Understanding these updates will help pensioners take full advantage of the increased thresholds and plan their finances effectively.
Centrelink Age Pension Changes from July
To qualify for the age pension, you must be 67 and meet income and asset tests. Starting July 1, these limits will be higher to match inflation. This means you can earn more income and own more asses before it affects your pension payments.
Income Test Changes
Starting July 1, the income test thresholds for the age pension are changing:
For single pensioners:
- You can earn up to $212 per fortnight without reducing your pension (up from $204).
- If you earn more than this, your pension decreases by 50 cents for every extra dollar.
- The maximum income before losing the pension completely will be $2,444.60 per fortnight (up from $2,436.60).
For couple pensioners:
- You can earn up to $372 combined per fortnight without reducing your pension (up from $360).
- If you earn more than this, your pension decreases by 50 cents for every extra dollar.
- The maximum combined income before losing the pension completely will be $3,737.60 per fortnight (up from $3,725.60).
Asset Test Changes
From July 1, the asset test thresholds for the age pension are changing:
For homeowners:
- Single pensioners can have up to $314,000 in assets (up from $301,750) to get the full pension.
- Couples can have up to $470,000 in assets (up from $451,500) for the full pension.
For non-homeowners:
- Single pensioners can have up to $566,000 in assets (up from $543,750) for the full pension.
- Couples can have up to $722,000 in assets (up from $693,500) for the full pension.
For part pensions:
- Single homeowners’ asset limit will be $686,250 (up from $674,000).
- Single non-homeowners’ asset limit will be $938,250 (up from $916,000).
- Couple homeowners’ asset limit will be $1,031,000 (up from $1,012,500).
- Couple non-homeowners’ asset limit will be $1,283,000 (up from $1,254,500).
Deeming Rates and Thresholds
Deeming rates, used by the government to estimate income from financial assets, will stay the same until June 30, 2025. However, the thresholds for these rates will go up:
- For single pensioners, the first $62,600 of financial assets will be deemed to earn 0.25% (up from $60,400).
- For couples, the first $103,800 of combined financial assets will be deemed to earn 0.25% (up from $100,200).
Any amounts above these thresholds will still be deemed to earn 2.25%.
Additional Adjustments
Starting July 1, there are a few more changes to the Centrelink age pension:
- For non-homeowners in retirement villages and granny flats, the extra allowable amount will increase from $242,000 to $252,000.
- The asset limit for Special Disability Trusts will rise from $781,250 to $813,250.
- The exempt funeral investment threshold will go up from $15,000 to $15,500.
These changes aim to give older Australians more financial flexibility. Higher income and asset limits mean more people can qualify for the age pension, and current pensioners might get higher payments.
Pensioners should check how these changes affect them and consider contacting Centrelink or a financial advisor for more detailed advice.
FAQs
1. What are the new income test thresholds for single pensioners?
Single pensioners can now earn up to $212 per fortnight without affecting their pension.
2. What are the new income test thresholds for couple pensioners?
Couples can now earn up to $372 combined per fortnight without affecting their pension.
3. How much can single pensioners earn before losing the pension completely?
Single pensioners can earn up to $2,444.60 per fortnight.
4. What are the new asset limits for full pensions for single homeowners?
Single homeowners can have up to $314,000 in assets.
5. What are the new asset limits for full pensions for couple homeowners?
Couples who own homes can have up to $470,000 in assets.
6. What are the new asset limits for full pensions for single non-homeowners?
Single non-homeowners can have up to $566,000 in assets.
7. What are the new asset limits for full pensions for couple non-homeowners?
Couples who do not own homes can have up to $722,000 in assets.