The Centrelink age pension changes implemented on July 1, 2024, have introduced significant updates designed to enhance financial flexibility for older Australians. While the base pension rates remain unchanged, increased income and asset test thresholds mean more pensioners are eligible for higher payments. These changes allow many to retain more income and assets without reducing their pension, expanding eligibility and improving the quality of life for thousands of retirees.
Qualification
To qualify for the age pension, individuals must be 67 years old and pass both income and asset tests. The updated thresholds, adjusted for inflation, enable pensioners to retain more income and assets before their pension payments are reduced.
Income Test
The income-free area has been expanded, allowing pensioners to earn more before their payments are affected:
| Pensioner Category | Previous Threshold | Updated Threshold | Reduction Rate |
|---|---|---|---|
| Single Pensioners | $204 per fortnight | $212 per fortnight | 50 cents per dollar |
| Couple Pensioners (combined) | $360 per fortnight | $372 per fortnight | 50 cents per dollar |
Maximum Income Limits
| Pensioner Category | Previous Limit | Updated Limit |
|---|---|---|
| Single Pensioners | $2,436.60 per fortnight | $2,444.60 per fortnight |
| Couple Pensioners (combined) | $3,725.60 per fortnight | $3,737.60 per fortnight |
Changes
Asset thresholds have also increased, allowing pensioners to own more before their payments are reduced.
Full Pension Asset Limits
| Homeownership Status | Pensioner Category | Previous Limit | Updated Limit |
|---|---|---|---|
| Homeowners | Single Pensioners | $301,750 | $314,000 |
| Couple Pensioners (combined) | $451,500 | $470,000 | |
| Non-Homeowners | Single Pensioners | $543,750 | $566,000 |
| Couple Pensioners (combined) | $693,500 | $722,000 |
Part Pension Asset Limits
| Homeownership Status | Pensioner Category | Previous Limit | Updated Limit |
|---|---|---|---|
| Homeowners | Single Pensioners | $674,000 | $686,250 |
| Couple Pensioners (combined) | $1,012,500 | $1,031,000 | |
| Non-Homeowners | Single Pensioners | $916,000 | $938,250 |
| Couple Pensioners (combined) | $1,254,500 | $1,283,000 |
Deeming Rates
Deeming rates remain frozen until June 30, 2025, but the thresholds have been indexed, increasing the amounts deemed at a lower rate:
| Pensioner Category | Previous Threshold | Updated Threshold | Deeming Rate |
|---|---|---|---|
| Single Pensioners | $60,400 | $62,600 | 0.25% |
| Couple Pensioners (combined) | $100,200 | $103,800 | 0.25% |
Amounts above these thresholds continue to be deemed at 2.25%.
Additional Adjustments
Additional pension-related adjustments effective from July 1, 2024, include:
- Retirement Village and Granny Flat Residents: The extra allowable amount for non-homeowners has increased to $252,000 (up from $242,000).
- Special Disability Trusts: The concessional asset value limit is now $813,250 (up from $781,250).
- Exempt Funeral Investment: The threshold for exempt funeral investments has increased to $15,500 (up from $15,000).
Eligibility
Pensioners should review their financial situation to determine how these changes may affect their payments. Contact Centrelink or consult a financial advisor for detailed guidance.
These changes aim to provide greater financial stability, enabling more individuals to qualify for the age pension or increase their current payments.
FAQs
What is the new income-free area for single pensioners?
It has increased to $212 per fortnight.
When do the deeming rates change?
Deeming rates are frozen until June 30, 2025.
What is the new asset limit for single homeowners?
It is now $314,000 for the full pension.
How much can a couple earn before losing their pension?
The combined limit is $3,737.60 per fortnight.
Can I get backdated payments if I apply late?
Yes, payments are backdated to the application date once approved.
