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Age Pension Changes Coming

Written by Michal Lancemore

Age Pension thresholds are increasing from 1 July 2023.  The increase in the lower thresholds means more people will qualify for a full Age Pension than was previously the case and part pensioners could get slightly more as the taper rate kicks in later.  The increase in the upper threshold means some people previously ineligible will now qualify.

So, essentially, due to a change in taper rates, every couple who are part pensioners now should get an additional $50 per week in their pensions, while singles will get an extra $35 per week.

 

ASSETS TEST

FULL PENSION

Current

[table id=1 /]

From 1 July 2023

[table id=2 /]

Single homeowner = increase of $21,750

Single non-homeowner = increase of $39,250

Couple homeowner = increase of $32,500

Couple non-homeowner = increase of $50,000

PART PENSION

Current

[table id=3 /]

From 1 July 2023

[table id=4 /]

Single homeowner = increase of $21,750

Single non-homeowner = increase of $39,250

Couple homeowner = increase of $32,500

Couple non-homeowner = increase of $50,000

 

INCOME TEST

FULL PENSION

Current

[table id=5 /]

From 1 July 2023

[table id=6 /]

Single = increase of $14 per fortnight

Couple = increase of $24 per fortnight

PART PENSION

Current and from 1 July 2023

[table id=7 /]

 

DEEMING

Deeming thresholds will also change from 1 July 2023.  Whilst the actual rates are frozen until 1 July 2024, the thresholds have been extended slightly:

Current

[table id=8 /]

Current and from 1 July 2023

[table id=9 /]

Single pensioners will have an additional $4,000 deemed at the lower rate of 0.25%

Couples will have an additional $6,600 deemed at the lower rate of 0.25%

Something to note:

Don’t diddle yourself out of your entitlements to age pension!  Most individuals will overvalue their contents when in actual fact, it should be fire sale value.

A Noel Whittaker say, for assets-tested pensioners, every $10,000 reduction in assets is worth about $15 a week in extra pension. So by investing $15,000 in a funeral bond and giving $10,000 to charity or your kids, your pension could be increased by $37.50 a week. That’s a 7.80% guaranteed return on your money.

 

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