Latest news with #WorkBonus
Yahoo
4 days ago
- Business
- Yahoo
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. RELATED Centrelink cash boost coming from July 1 for millions of Aussie Centrelink issues urgent deadline warning for lump sum payment ATO superannuation warning as deadline for $30,000 deduction fast approaches 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 nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati
The Advertiser
27-05-2025
- Business
- The Advertiser
Pensioners left hanging as government signals deeming freeze to end
Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE.
Yahoo
05-05-2025
- Business
- Yahoo
Centrelink $4,000 boost Aussies can get now: ‘Keep more of your payment'
Aussies claiming the Age Pension can get a 'one-off boost' of $4,000 through the Work Bonus scheme. The Work Bonus allows older Aussies to earn more income from working without it reducing their Centrelink payments, with Aussies able to start work 'straight away' if they want. Services Australia has issued a reminder about the scheme and how it could help you 'keep more of your payment'. You would be eligible if you're over the age of 67 and collecting the Age Pension, Disability Support Pension or Carer Payment. 'The Work Bonus automatically exempts $300 per fortnight you earn from work. Every fortnight you aren't working or have been paid less than $300 from work, you are contributing to your Work Bonus balance,' Services Australia community services officer Justin Bott explained. 'This balance can grow until it reaches a maximum of $11,800.' RELATED $3,300 Centrelink change that would leave thousands of pensioners worse off: 'Pile on more pain' Tax cuts, HECS debts, Medicare boost: All the major cost-of-living relief coming for millions of Aussies Intimidating salary now needed to afford a home in Australia If you are claiming an eligible pension for the first time, you will automatically start with a Work Bonus balance of $4,000. 'That means you could start work straight away if you wanted, and earn over $4,000 in your pocket before you see any change to your pension rate,' Bott said. 'If you earn more than $300 from work in a single fortnight, any extra income is offset against your Work Bonus Balance. Your pension payment doesn't change until your work bonus balance is reduced to $0.' The Work Bonus isn't money that you can draw on to use for other things. Instead, you use it to keep more of your pension if you are working. Bott gave the example of someone with a Work Bonus balance of $7,900 who returned to work after six months off. He was paid $750 in eligible income in his first fortnight. Services Australia would deduct the $300 fortnightly Work Bonus and then reduce the remaining $450 of income using his Work Bonus balance. This would reduce his Work Bonus balance to $7,450 and his pension payment would not be impacted. Assuming he continued working and being paid $750 a fortnight, it would take around 16 fortnights before his pension was affected by his wages. You don't need to apply for the Work Bonus. You just have to let Centrelink know of any income you receive from work. The Work Bonus is on top of the pension income test free area. Single pensioners can currently earn up to $212 a fortnight of income from any source and still be eligible for the full pension, couples can receive up to $372 a fortnight. The Work Bonus, which only applies to income from paid employment, adds an extra $300 per fortnight. That means singles can earn a combined income of $512 a fortnight and couples $672 a fortnight without it affecting their pension.
