Centrelink age pension changes coming into effect from July 1
Millions of Australians stand to benefit from changes to the age pension coming into effect from July 1. While payment rates aren't going up, increased income and asset thresholds mean thousands more could be entitled to benefits and others may get bigger payments.
To receive the age pension from Centrelink, you need to be 67 years or older and pass an income and asset test. From July 1, the thresholds for these tests will increase by 2.4 per cent to ensure they keep pace with the cost of living.
That means people will be able to earn more and have more assets before their payments are affected. It also means some people may be able to qualify for the pension for the first time.
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The age pension is currently $1,149 per fortnight for singles, including supplements, and $1,732.20 combined for couples. Payment rates increase twice a year in March and September.
Around 2.6 million people receive the age pension in Australia. Receiving the payment means you'll also be eligible for the Pensioner Concession Card, which gives you access to cheaper medicine, bulk-billed doctor visits, and state, territory and local government benefits.
Singles will be able to earn $218 a fortnight, up $6 a fortnight from $212, and still be eligible for the full pension.
Each $1 over the threshold reduces the pension by 50 cents a fortnight until it hits the new cut-off limit of $2,516 a fortnight.
Couples will be able to earn $380 a fortnight, up $8 a fortnight from $372, and get the full amount. The new cut-off limit will be $3,844.40 per fortnight.
Income includes employment income, along with income from other sources such as financial assets like super and savings accounts.
Under the Work Bonus, pensioners can earn up to $300 of employment income in a fortnight without it affecting their pension.
Single homeowners will be able to have assets of $321,500 and receive the full pension, up from $314,000. Couples will be able to have $481,500, up from $470,000.
The cut-off threshold to receive a part pension will increase to $704,500 from $697,000 for singles, and to $1,059,000 from $1,047,500 for couples.
Single non-homeowners can have assets of $579,500, up from $566,000 and get the full pension, while couples can have $739,500, up from $722,000.
The cut-off thresholds will increase to $962,500, up from $949,000, for singles, and $1,317,000, up from $1,299,500 for couples.
Assets include things like cars, business assets, property (not including your primary residence), your superannuation balance, investments and private trusts and private companies.
The deeming thresholds will also increase on July 1.
Deeming rates are used to estimate how much income you earn from your financial assets each year, instead of calculating your actual returns.
For singles, the lower threshold will increase to $64,200, up from $62,600. For couples, the lower threshold will increase to $106,200, up from $103,800.
Amounts up to the lower threshold will be deemed to have earned an interest rate of 0.25 per cent, while amounts above have a rate of 2.25 per cent.
The change means a bigger portion of your income will be assessed at the lower rate. This may mean some people may be entitled to slightly bigger payments.Errore nel recupero dei dati
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