Part pensioners can expect a welcome jump in payments come 1 July.
Changes to the threshold levels mean some households may be up to thousands better off for the next financial year.
The full Age Pension rate is not changing but the thresholds that determine a part pension will be adjusted for inflation.
As well as part pensioners seeing more in their bank balance, the indexation will also mean many part pensioners will be able to move to a full Age Pension and more people will be eligible for a part pension.
And it’s not just the part pension, it’s all the concessions that are part of the package if you become eligible for the Age Pension or part pension.
The Department of Social Services has announced the rate increases for 1 July.
Under the assets test, each $1000 worth of assets over the threshold reduces the pension by $3 a fortnight.
The asset-free area for maximum payment for homeowners will jump from $280,000 to $301,750, a difference of $21,750. This will translate to an extra $65.25 a fortnight, or $1696.50 a year.
For a couple, the $32,500 threshold increase will mean an extra $97.50 a fortnight or $2535 a year.
The asset-free area for maximum payment for non-homeowning singles jumps from $504,500 to $543,750, and from $643,500 to $693,500 for couples.
The upper level at which you will be disqualified for a pension moves from $954,000 for a homeowner couple to $986,500 and for single homeowner the figure increases from $634,750 to $656,500.
For non-homeowners, the threshold increases from $859,250 for $898,500 for singles and from $1.178,550 million to $1.228,500 million for couples.
Revalue your assets
With these increases, the financial year may a be a good time to revalue your assets. Unless your furniture and vehicles are of exceptional quality, they will have almost certainly devalued over the past year.
The amount pensioners can earn before their income starts to reduce under the income test is also increasing, but not by much.
Under the income test, each $1 of income above the threshold reduces the amount of pension by 50 cents a fortnight.
The new thresholds only increase the amount pensioners can earn by $14 a fortnight for singles and $24 for couples. This represents an increase of $182 a year for singles and $312 for couples.
The next increases will be announced on 20 September and will cover another increase to the upper cut-off thresholds.
Will these changes affect your income? Or will you qualify for a part payment now? Why not share your outcomes in the comments section below?
Also read: Inflation and interest rates put pressure on superannuation in May
On paper these increases reflect the inflation levels.
Of interest to me is the couple separated by illness Assett limits..
It seems generous but it is difficult to understand the thinking .
The income deemed by my financial assets is $24500 pa.but the assets limit is $1,161.000 for which I am slightly over so no part pension for me.
Later this year there will be a huge increase in nursing home fees.
For those who might think that is a lot of money i thought it is relevant to mention that my wife’s Agedcare fees are $221.82 a day inclusive of the Govts means fee tax of $30.00 per day. I will be ok but thought it may be of interest to those with a partner who may finish in Agedcare.
Hello Hammo, Seems you have worked hard, saved hard & lived frugally only to find the pension anomalies. The government does not encourage effort. If you search in Your Life Choices for “Talking Retirement and Pension Strategies” by John De Ravin, Oct 2020, you may find something helpful. Utmost respect for you as you take care of your wife. Good Luck, Dorothy
Just curious. The Federal Government increased the work bonus for Partime pensioners working partime by a lump sum payment of $4000.00 into their work bonus account. This was to finish 30/06/23.
Now the work bonus is going through till the 31/12/23. Does this mean that there will be another lump sum payment of $4000.00 into the work bonus account or not. If not I think that we may have been misled.