Changes to the age pension will benefit thousands of Australians from July 1. Although the pension rates aren’t going up, some people may end up with higher payments. To receive the pension, you must be 67 years old and have to pass an asset test and an income test.
The income and asset tests’ thresholds will increase due to inflation.
Picture: Kelsey Reid
This means that people will have more money and can earn more before their payments get affected.
Some may also be able to take advantage of these changes and receive the pension they were previously denied.
The exact changes will vary depending on your situation. For instance, a single pensioner will receive around $212 a fortnight, which is an increase of $8 from $204.
They can still be considered for the full pension. On the other hand, a couple will receive around $372 a fortnight, which is an increase of $12 from $360.
If your income exceeds this amount, your pension will decrease by around 50 cents for every $1 over the previous two figures.
The maximum amount that you can earn before the pension is cut off will be increased to $2,444.60.
For couples, the figure is $3,737.60. Single individuals will be able to own assets worth over $314,000 and receive the full pension, while non-homeowners will have to have assets worth around $566,000.
The combined assets of a couple will now be around $470,000, which means that one individual will be able to receive the full pension while the other will be able to have a portion.
For part pensions, the combined assets of single homeowners will be around $686,250, while those of couples will be around $732,200.
The combined assets of a couple will now be around $470,000, which means that one individual will be able to receive the full pension while the other will be able to have a portion.
For part pensions, the combined assets of single homeowners will be around $686,250, while those of couples will be around $732,200.
The threshold for single homeowners will be $1,283,000, while that of couples will be $1,031,000.
This comes after the government froze the rates at 2.25 percent and 0.25 percent for another year.
Deeming is a process that the government uses to work out your financial assets’ income. It assumes that your assets will earn a set rate of return.
This is then used to calculate your payment rate and determine your income.
For single people, the first 62,600 of their assets will now be considered as earning 0.25 percent, up from 60,400.
On the other hand for couples, the first $102,800 of their assets will now be considered as earning 0.25 percent, up from $100,200 previously.