Welcome to the new financial year, and as we move into July 2023 the income and asset thresholds that determine how much pensioners are paid will be adjusted for inflation.
Although the age pension rate will not change, the thresholds that Centrelink use to calculate your eligibility and how much Age Pension you receive will increase, bringing a welcome boost to the cash flow of older Australians on a part pension.
If you currently receive a full age pension your payments will not change as of yet, but part pensioners will see an increase in their payments due the lifting of these thresholds. This may also enable non pensioners to qualify for the age pension.
Here's what changing from 1 July:
Income threshold increasing
Single pensioners will be able to earn $204 a fortnight - up from $190 a fortnight - and still be eligible for the full single pension.
Couple pensioners will be able to earn $360 a fortnight - up from $336 a fortnight - and still be eligible for the full amount.
Once this threshold is exceeded, the pension amount is reduced by 50 cents for every dollar over $204 or $360, respectively.
The cut-off point will be $2,332 per fortnight for singles and $3,568 per fortnight for couples.
Asset threshold increasing
Single homeowners will be able to have assets of $301,750 and receive the full pension, while single non-homeowners can have assets of $543,750. These are increases of $21,750 and $39,250, respectively.
Couple homeowners will be able to have combined assets of $451,500 and receive the full pension, while couple non-homeowners can have $693,500. An increase of $32,500 and $50,000.
Single homeowners will be able to have up to $656,500 of assets and receive a part pension, while single non-homeowners will be able to have $898,500. An increase of $21,750 and $39,250.
For couples, the cut-off threshold will increase to $986,500 for homeowners and $1,228,500 for non-homeowners. These are increases of $32,500 and $50,000, respectively.
If you are on a part pension at present, you do not have to do anything to see your age pension slightly increase. If you do not receive an age pension and feel your assets/income are below the new thresholds we are more than happy to review your individual circumstances.
