Changes to the asset and income thresholds will result in a small pension increase for around one million part-rate age pensioners and carer payment recipients.
The increase to income and asset limits will take place on 1 July as part of the annual indexation measures applied to the means test.
Pensioners receiving a part rate will benefit from the increase in the free areas because the amount of income and assets allowed before their payment is affected is increasing.
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The Age Pension, Disability Support Pension and Carer Payment single income free area will increase by $2 to $180 per fortnight, which will increase their payment by $1 per fortnight, and the couple combined income free area will increase by $4 to $320 per fortnight.
The maximum allowable income for age pensioners before their payments are stopped has also increased by $2 per fortnight, with the new cut-off from 1 July being $2085.40 per fortnight.
The combined maximum allowable income for couple before their payments are cut will lift by $4 to $3192.40 per fortnight, while an illness-separated couple will be able to earn $4130.80 per fortnight.
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The number of assets a pensioner couple who own their own home can have before it affects their rate of payment will increase to $405,000 (excluding their home) up from $401,500, which will flow through to increase their payment by $10.50 per fortnight.
A single homeowner will be able to have assets of $270,500 before their pension is affected, up $2500 on the current threshold, while non-homeowning singles will be able to have $487,000 in assets before their pension is affected, an increase of $4500.
A couple who do not own their own home will be allowed to have assets totalling $621,500, an increase of $5500 on the current asset limit.
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The disqualifying asset thresholds will also increase on 1 July, which will increase the number of Australians that may become eligible to receive a pension payment.
Single homeowners can have up to $588,250 in assets (an increase of $2500) to be eligible for a pension payment, while single non-homeowners can have $804,750, an increase of $4500.
A homeowner couple can have up to $884,000 in assets (an increase of $3500) and be eligible for a pension payment, while non-homeowning couples can have $1,100,500 in assets, an increase of $5500.
The deeming rate thresholds will also be adjusted as part of the 1 July indexation, with the singles threshold lifting to $53,600 from $53,000 and the couples combined threshold lifting to $89,000 from $88,000.
More detail on the new payment rates and thresholds are available at https://www.dss.gov.au/benefits-payments/indexation-rates-july-2021
Will you receive a pension increase as a result of these changes on 1 July? Why not share your thoughts on the indexation in the comments section below?
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