Big Age Pension Changes from July 1 Mean More Money for Many Seniors
From July 1, there's good news for a lot of Aussie seniors — and no, it’s not Christmas just yet, but it might feel like it. Centrelink has announced changes to the age pension thresholds that could mean more cash in the pockets of part-pensioners. While the base pension rate isn’t increasing, the income and assets test thresholds have been adjusted to keep pace with inflation. And that’s a game-changer for many.
So what’s really changing?
Well, starting this new financial year, if you're a couple and you’re on a part-pension due to asset testing, you could now be getting up to $34.50 more every fortnight . If you're single, it’s up to $22.50 extra . These aren’t blanket increases but result from changes in the taper rate, which is how Centrelink reduces your pension when your assets or income go above the threshold.
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More importantly, some people who weren’t eligible for the pension at all — especially due to their assets being just over the limit — might now qualify for a part-pension . That’s because the cut-off points have increased . For example, a homeowner couple’s asset limit has moved up from $1,047,500 to $1,059,000 . For singles, it’s increased from $697,000 to $704,500 .
And it's not just the asset test — the income test thresholds are rising too. Couples can now earn $380 per fortnight before their pension starts to reduce, up from $320, while singles can earn $218 , up from $212.
Here’s the catch: Centrelink checks both your income and assets, then applies whichever test gives you the lower payment . So even if your income is within limits, a high asset value could still reduce your pension. That’s where strategy comes in — things like valuing personal belongings correctly or using funeral bonds and gifting can help reduce your assessable assets and boost your payments.
Take this example: Jack and Jill, a retired couple with $700,000 in assessable assets, are asset-tested. After the July changes, their pension increases to $538.35 each fortnight . Since they’re asset-tested, their income from other sources can go up to $44,000 annually without affecting their pension — which is huge. That’s thanks in part to deeming rules that estimate investment income, which don’t apply to asset-tested pensions.
The overall takeaway? These changes offer an opportunity to review your financial situation and possibly unlock more from the system than you’re currently getting. It's definitely worth checking the updated pension charts or using calculators available on expert sites like Noel Whittaker’s , who’s been helping Aussies plan their retirement for decades.
If you're already on the pension or close to qualifying, this might be the perfect time to reassess your eligibility. That small change in asset value, or a minor adjustment in income, could push you over into a better bracket.
So yes, Christmas really might be coming early — at least for seniors navigating the Centrelink maze a little more successfully.
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