The Age Pension system in Australia is being adjusted, allowing more seniors to qualify for this important financial support. Starting March 20, the Australian Government will implement an increase in both the Age Pension rates and the cut-off thresholds for the income and asset tests required to qualify for the pension.
These changes will provide additional financial support to many Australian seniors who depend on the Age Pension during retirement. The adjustments are part of the government’s regular indexation process, which aims to ensure that social security payments keep pace with the cost of living.
Here’s what you need to know about the changes and how they might affect you:
Income test adjustments
The income test determines how much you can earn from various sources before your Age Pension is affected. With the new changes, single pensioners will now be able to earn up to $2,510 a fortnight, an increase of $9.20 from the previous $2,500.80, and still qualify for a part Age Pension. For couples, the threshold has been raised by $14 to a maximum of $3,836.40 a fortnight.
For those eligible for the full Age Pension, singles can earn up to $212 per fortnight, while couples can earn $372 combined. It’s important to note that these figures do not include the work bonus scheme, which allows seniors to earn an additional $300 a fortnight from employment without affecting their pension.
Asset test adjustments
The asset test looks at the value of assets you own, and the thresholds have also been increased. Single homeowners can now have assets up to $697,000 (up $1,500), and single non-homeowners can have up to $949,000 (up $1,500) to qualify for a part Age Pension. For couples, the combined assets threshold for homeowners is now $1,047,500 (up $2,000), and for non-homeowners, it’s $1,299,500 (up $2,000).
To receive the full Age Pension, the asset limits are $314,000 for single homeowners and $566,000 for single non-homeowners. For couples, the limits are $470,000 for homeowners and $722,000 for non-homeowners.
Pension rate increases
The maximum single rate for the Age Pension will see an increase of $4.60, bringing it to $1,149 a fortnight. Partnered individuals will each see an increase of $3.50, making the combined rate $1,732.20 a fortnight.
Social Services Minister Amanda Rishworth has stated that these increases, while modest, are intended to help pensioners manage rising living costs. ‘Indexation is a critical part of our social security safety net,’ she stated. ‘For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.’
If you’re nearing or have reached the qualifying age of 67, it’s crucial to review your income and assets to determine if you’re now eligible for the Age Pension or an increased amount due to these changes. The Age Pension provides more than just a fortnightly payment; part-pensioners can also access the Pensioner Concession Card, which helps reduce costs on healthcare, medications, and other services, potentially saving thousands annually.
These adjustments to the Age Pension system aim to reflect the rising cost of living and provide additional support to eligible seniors. While the changes may benefit many, their impact will vary depending on individual circumstances.
We’d love to hear your thoughts on these changes—do you think they provide adequate support for retirees? Feel free to share your perspective in the comments below.
Also read: The Centrelink workaround that could shield age pensions from cuts
WOW! What an increase being less than 1% increase p.a. But it will buy 2 cups of coffee at 711 and you’ll have 60 cents left over – but that’s only if you’re a single on the maximum pension. It’ll really do as the Social Services Minister Rushworth says, “help pensioners manage rising living costs. ‘Indexation is a critical part of our social security safety net,’ she stated. ‘For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.’
What a farce!
And hard done by politicians get a 3.7% increase from July 1st. Us single pensioners get 0.4%. I’m surprised they were so generous for us.
$4.60 + 80 cents in rent assistance – how very rude!
The Total Average Weekly Male Earnings went up by 4.6% over the 12 months to November, so why aren’t they using that benchmark? It’d definitely be a better increase.
As for me, my phone bill’s just gone up by $10 per month, so that completely wipes out my increase, so I’ve got absolutely nothing to spend! Then there’s the possibility of a rent rise in August (won’t know by how much until April when the agent sends an email inviting me to renew my lease. They won’t tell you the new rent until you accept the invitation, then wham! It goes up), Where do I get the extra funds for the increase? I’m on a tight enough budget and have no ‘wiggle room’ to cop a big increase in rent, even $10 a week could see me on the street and homeless.
I’ve been on the NSW Housing list for nearly 9 years now, and there’s been absolutely no movement in my name on the list. Hopefully I may be able to get up the list, as I’ve recently had a fall at home.
I’m also very frugal with how I spend my pension. I have a budget in Excel and use MYOB to keep a track of every cent I spend. I’m a retired bookkeeper, so that helps.
What a load of scintillating codswallop, absolute Govt Bulls**t ! My wife and I get a $1.50 increase each. The coffee I bought this morning cost $5.08. Can we please consign this Govt to the Loony Bin where they can play their imbecilic games without hurting us normal people ?
Would be the same under the LNP government. Want real change. Put both at the bottom of your vote with the current embunbant last. That’s the only way to send a clear message to both parties
Mate, I am on this already, don’t give a stuff about what the dickheads out there say about the Greens, they are getting my No. 1 vote !
Last March pension for singles was $1116.30. Now $1149.90. An increase of $32.70. That’s a 2.93% annual increase. The lowest yearly increase March to March in 4 years.
According to the ABS estimates for average weekly ordinary time earnings for full-time adults increased by 4.6% in November 2024.
Going backwards yet again
Can also guarantee non working pensioners will yet again have no mention in the upcoming federal budget. Been 17 years since the OAP was increased outside of the biannual increases
That paltry increase does not take into account that we have been funding the Cost of Living increases since the last paltry increase, and the one before that, etc etc, and it will continue that way, always going backwards unless the Method of setting the Pension and how it is Updated is brought up into this Century !!
Maybe we should move to China? I spent 3 months there a few years ago, and was amazed (and quite dismayed) to see the number of elderly people working outside, in all weathers, sweeping the roads, sweeping the footpaths, polishing shoes – whatever they could get to earn a meal at the end of the day.
There is no Aged Pension in China. If you don’t work, you don’t eat. End of story.
Yes, our Pension system could be improved. But it’s a darn sight better than no pension at all.