The Australian govt has increased the pension for the old age people. The people are getting the benefit of increased pension from 01 July 2024. The increased pension has been implemented fully in Australia. There are thousands of older people in Australia who will get the benefit of the increased pension. The govt of Australia has taken the step to improve the standard of life for the older people.
However, the Australian govt does not change the base pension rates for the Centrelink old pension. The govt has updated the annual income criteria and asset criteria for the Centrelink Old Pension. This decision of Australia has included several more people under the old pension program. Now, more people are qualified for the pension in Australia.
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Updated Eligibility for the Age Pension
The people who want to apply for the Old Pension in Australia must meet some criteria. The age of the person should be 67 years or more. These people must meet the income threshold and asset threshold. The Australian govt has increased the income and asset threshold value effective from 01 July 2024. The Australian govt decided this as they noticed the fact of increasing inflation in Australia. Now, the old people in Australia with higher income can also benefit from the old age pension.
Income Test Adjustments
The details of income for the old age person to become eligible for the pension are given below.
- Single Pensioners: The new limit for income for the single person is now $212 and the earlier, income limit was $204.
- Couple Pensioners: The new limit for income for the couple person is now $372 and the earlier, income limit was $360.
Below is the maximum limit of the income for the old pension.
- Single Pensioners: The new limit for income for the single person is now $2,444.60 and the earlier, income limit was $2,436.60.
- Couple Pensioners: The new limit for income for a couple person is now $3,737.60 and the earlier, income limit was $3,725.60.
Asset Test Changes
The Australian govt also changes the threshold value of the asset test. Now, the people of Australia can have more assets than the earlier and can have the benefit of an old age pension.
For Homeowners:
- Single Pensioners: The new limit for assets for a single person is now $314,000 and the earlier, income limit was $301,750.
- Couple Pensioners: The new limit for assets for a couple person is now $470,000 and the earlier, income limit was $451,500.
For Non-Homeowners:
- Single Pensioners: The new limit for assets for a single person is now $566,000 and the earlier, income limit was $543,750.
- Couple Pensioners: The new limit for assets for a couple person is now $722,000 and the earlier, income limit was $693,500.
The people who are getting part pensions should check the new set limit below.
- Single Homeowners: The new limit for assets for a single person is now $686,250 and the earlier, income limit was $674,000.
- Single Non-Homeowners: The new limit for assets for a single person is now $938,250 and the earlier, income limit was $916,000.
- Couple Homeowners: The new limit for assets for a couple person is now $1,031,000 and the earlier, income limit was $1,012,500.
- Couple Non-Homeowners: The new limit for assets for a couple person is now $1,283,000 and the earlier, income limit was $1,254,500.
Deeming Rates and Thresholds
The govt does not change the Deeming rates and they said that the Deeming rates will be frozen until 30 June 2025. The Deeming rates mean the method of govt to calculate the income of a person from the financial asset. But, the limit for the Deeming rates is indexed, check below.
- Single Pensioners: The new limit of the first $62,600 of financial assets is deemed to earn a 0.25% increase, earlier it was at $60,400.
- Couple Pensioners: The new limit of the first $103,800 of combined financial assets is deemed to earn a 0.25% increase, earlier it was at $100,200.
- The amounts which are above these values will be deemed to earn 2.25%.
Additional Adjustments
There are other adjustments also, check below.
- Retirement Village / Granny Flat Residents: The additional permissible amount for non-homeowners in retirement villages /granny flats has increased to $252,000 from $242,000.
- Special Disability Trusts: The older concessional asset value limit is $781,250 and the new values are $813,250.
- Exempt Funeral Investment: The govt has also increased the threshold for exempt funeral investments to $15,500 from $15,000.
Reviewing Your Pension Eligibility
The old age people of Australia are needed to check their eligibility for the Old Age Pension. many factors have changed the Australia pension for old age people. The people must carefully check the threshold values for various factors and they can benefit from the Australian govt by taking the old age pension and living quality life. You can also consult a financial advisor who can guide you about all the threshold limits. The Australian govt is aiming to provide financial stability to the old age people.