Important pension changes you need to know about starting July 1

Gather 'round, members of the Seniors Discount Club, we've got some news that might just make your day! Christmas has come early for many Australian seniors, as significant pension changes are set to take effect from July 1.

We understand that pension changes can be a bit of a headache to keep track of, but never fear! We're here to break down the essential information so you can fully understand and benefit from these upcoming changes.



First off, we want to clarify that the pension rates themselves are not changing. So, what exactly is changing, you ask?

The thresholds that determine how much pension is paid have been adjusted for inflation, which means that many part-pensioners will now move to a full pension.

Additionally, some people who were previously ineligible for a pension (due to being over the assets test cut-off point) will now be eligible to start claiming a part pension and reap the benefits of all the concessions that come with it.


Screen Shot 2023-06-13 at 9.32.12 AM.png
Every couple who receives a part pension could get an extra $50 a week in their pension, while singles could be entitled to an additional $35. Credit: Pexels/Kaboompics.



Here's the exciting part for our part-pensioner members: every part-pensioner couple can now expect a $50-a-week increase, while singles will receive an extra $35 a week.

Keep in mind that these benefits are exclusive to part pensioners, as they're due to a change in the taper rates and not an increase in the overall pension payable amount.



Next up in the changes, the assets test cut-off points are getting an uplift as well. The lower level, where the pension starts to reduce, has increased from $419,000 per couple and $280,000 for singles to $451,500 and $301,750, respectively.

The upper level, where eligibility for pension cuts off, moves from $954,000 for a homeowner couple to $986,500, and for singles, the numbers shift from $634,750 to $656,500.

These new figures also affect the amount pensioners can earn before their pension starts to reduce under the income test. For couples, the income test cut-off point rises from $336 a fortnight to $360 a fortnight, while for singles, it increases from $190 a fortnight to $204 a fortnight.



Deeming rates (which are used to work out income from your financial assets) will remain at favourable levels. For singles: 0.25% on the first $60,400 and 2.25% on the balance, and for couples: 0.25% on the first $100,200 and 2.25% on the balance.

The government had previously promised these rates would be frozen until July 1, 2024, but thresholds have been adjusted slightly in line with inflation. This change will result in a small benefit to all income-tested pensioners.


Screen Shot 2023-06-13 at 9.32.03 AM.png
For couples, the threshold at which their pension begins to decrease from the set amount will rise from $336 per fortnight to $360. Credit: Pixabay/pasja1000.



We know it can be a bit confusing when it comes to Centrelink and their tests, as they tend to use both the income test and the assets test. It's important to understand how they intersect: Centrelink will apply whichever test gives you the least pension.

However, some results can arise due to the disparity between the two tests. For example, if you're asset-tested, deeming is not relevant—it's only used for the income test.

In addition, the rule regarding the reduction of pension for a retired couple when their income exceeds $360 per fortnight does not apply to pensioners who are subject to an assets test.



Let us provide you with an example that might help. Imagine a couple named Jack and Jill. They own their own home and have a total of $600,000 in assets that can be assessed. Out of this amount, $550,000 consists of financial assets, which are subject to deeming. Since they fall under the assets test, their pension will increase from $530 per fortnight to $580 per fortnight for each individual after June 30.

As per the assets test, Jack and Jill can earn up to $36,000 annually without any negative impact on their pension. Under the proposed adjusted deeming rules, their $550,000 in financial assets would be considered as earning $10,000 per year. This means they have the flexibility to earn an additional $26,000 per year without affecting their pension.

If you click on this link, you'll have the option to download the new pension charts. Noel Whittaker, one of Australia's foremost financial commentators, also has a website where you can use the age pension calculator and the deeming calculator, both of which have been updated with the latest figures. Feel free to experiment with these tools and gain a better understanding of how the changes may affect you.

Key Takeaways

  • Changes to the pension are coming in Australia from July 1, adjusting thresholds for inflation.
  • Many part-pensioners will now move to a full pension, and some previously ineligible people will be eligible to start claiming a part pension.
  • The new numbers also increase the amount pensioners can earn before their pension starts to reduce under the income test.
  • As the rules change, it's advised to review your position and see if any small changes could potentially increase your cash flow.



Now, we know we've thrown a lot of numbers and changes your way, but the bottom line is that these adjustments should mean more money and flexibility for many SDC members. As the rules change, it's essential to review your situation and consider whether making small adjustments could increase your cash flow.

Remember, knowledge is power. Remain informed of these crucial pension changes, and ensure that you make the most out of the increased benefits. Don't forget to share this news with your friends and loved ones so everyone is aware of these important changes coming from July 1.
 
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That is awesome for people who have assets or expendable money in bank, $50 will certainly buy more coffee's and steak and chops, etc. What do pensioners get, as usual we get stepped on and pushed further down. Congrats Federal Gov.
 
That is awesome for people who have assets or expendable money in bank, $50 will certainly buy more coffee's and steak and chops, etc. What do pensioners get, as usual we get stepped on and pushed further down. Congrats Federal Gov.
The rich will get richer and the poor will get poorer. I have a $180.00 fees increase coming up in July and no Pension increase to support it … definitely not good especially in light of the huge cost of living increase. Every Pensioner should be getting a substantial increase. Come on Government show yourselves strong and give us $100.00 per week increase.
 
This is so unbalanced. As a single pensioner I pay the same amount of rates, insurances, etc etc as a couple yet each person within a couple relationship earns $50-$80 more than a single pensioner! We need a significant rise in the age pension. We worked for this all our Lives!!!
 
I am slightly confused! Will these changes be automatically adjusted or do individuals have to contact centrelink with new bank balances, asset amounts etc?
I would certainly hope they are automatic. The assessment process is so difficult. Centrelink already adjusts amounts from time to time, so they should be able to do it for this.
 
This is so unbalanced. As a single pensioner I pay the same amount of rates, insurances, etc etc as a couple yet each person within a couple relationship earns $50-$80 more than a single pensioner! We need a significant rise in the age pension. We worked for this all our Lives!!!

I feel exactly the same as you do Elyna. I too am single, having lost my husband 11 years ago and live off a single pension income. With that I too pay rates, rego, insurances etc, not to mention the high cost of living of electricity increase and food. It is not fair that a couple who pays the same as I do, gets more pension than a single pensioner with the same outgoings but on less money coming in. Single pensions should be adjusted to the same as a couple.
 
Well, whoop-de-doo! Increase limits so that people who already have more than full pensioners get an increase! This government has absolutely no f......g idea! Food and power costs are going through the roof along with rents to keep that roof over our heads so the cost of living is climbing rapidly while our lifestyle is deteriorating. The Pension increases in March and September are less than useless because they don't even scratch the surface of rising costs. And this government must be spending a fortune on the useless referendum coming up.
 
I feel exactly the same as you do Elyna. I too am single, having lost my husband 11 years ago and live off a single pension income. With that I too pay rates, rego, insurances etc, not to mention the high cost of living of electricity increase and food. It is not fair that a couple who pays the same as I do, gets more pension than a single pensioner with the same outgoings but on less money coming in. Single pensions should be adjusted to the same as a couple.
My thoughts exactly. I'm also a widow trying to be as independent as I can and keep my home going. The pension issue is iniquitous on some levels - like paying rates, power bills, insurance etc. out of one payment. I live in a unit (one of 3) where the building insurance goes up every year per the Body Corporate Policy. The other two units contain working younger men. This year my share will take up almost one fortnight's pension. Much easier if two pensions coming in. I'm going backwards....the age pension is a disgrace and they need to get a competent Actuary to sort it out.
 
They only know what you tell them. All this crap Centerlink bluff people with to make you think they have access to every bank account and personal file you have tucked away. It’s rubbish.
Centrelink does not have access to your bank account balances and you have to advise them if your balances change significantly. The ATO receives information from banks about how much interest you have earned during the financial year and that information is shared with Centrelink.
 
How would you like to be in my shoes I am 75 years old my husband is 63 I am not treated as a senior my husband has cancer the bad one he cannot work we both get $538.00 a fortnight he also gets $1235 a fortnight we pay rent$580 a week.yes he did get a pay out after solicitors take there share out we still have money left because of my husband age we are not allowed to have what seniors can in there bank account this law is so out of date.What I am so angry is these politician still get a full wage trips overseas and there office paid for every year who else would get that and they try and tell us we are all as one what a joke they treat older people disgusting and should hang there head in shame.I am a senior and should be shown respect I deserve.Jol
 
How would you like to be in my shoes I am 75 years old my husband is 63 I am not treated as a senior my husband has cancer the bad one he cannot work we both get $538.00 a fortnight he also gets $1235 a fortnight we pay rent$580 a week.yes he did get a pay out after solicitors take there share out we still have money left because of my husband age we are not allowed to have what seniors can in there bank account this law is so out of date.What I am so angry is these politician still get a full wage trips overseas and there office paid for every year who else would get that and they try and tell us we are all as one what a joke they treat older people disgusting and should hang there head in shame.I am a senior and should be shown respect I deserve.Jol
my maths may be not so good but you seem to have some cash about. as to politicians they get their wage as they work for it. well some do. why criticise those that work. we had a chance.
 
What a whole $3 if your lucky
Single pensioners on a full pension received $37.50 per fortnight and couples $56.40 per fortnight extra in the March increase. The September 2022 increases were $38.90 for singles and $58.80 for couples per fortnight. On an annual basis pensions have increased by $1,986.40 for singles and $2,995.20 for couples!

This means the full pension for singles is currently $27,664 and for couples $41,704 per annum! All of this is TAX FREE!

In comparison, a worker on the minimum wage working 38 hours per week, will now earn $45,905.60 BEFORE TAX as a result of the recent minimum wage increase! Before the rate increase their PRE-TAX earnings were barely above the couple pension at $42,255.20. Off that income, the worker pays $5,386 income tax plus Medicare!

I don't get the pension, but if I did, I would not complain!
 
Gather 'round, members of the Seniors Discount Club, we've got some news that might just make your day! Christmas has come early for many Australian seniors, as significant pension changes are set to take effect from July 1.

We understand that pension changes can be a bit of a headache to keep track of, but never fear! We're here to break down the essential information so you can fully understand and benefit from these upcoming changes.



First off, we want to clarify that the pension rates themselves are not changing. So, what exactly is changing, you ask?

The thresholds that determine how much pension is paid have been adjusted for inflation, which means that many part-pensioners will now move to a full pension.

Additionally, some people who were previously ineligible for a pension (due to being over the assets test cut-off point) will now be eligible to start claiming a part pension and reap the benefits of all the concessions that come with it.


View attachment 22148
Every couple who receives a part pension could get an extra $50 a week in their pension, while singles could be entitled to an additional $35. Credit: Pexels/Kaboompics.



Here's the exciting part for our part-pensioner members: every part-pensioner couple can now expect a $50-a-week increase, while singles will receive an extra $35 a week.

Keep in mind that these benefits are exclusive to part pensioners, as they're due to a change in the taper rates and not an increase in the overall pension payable amount.



Next up in the changes, the assets test cut-off points are getting an uplift as well. The lower level, where the pension starts to reduce, has increased from $419,000 per couple and $280,000 for singles to $451,500 and $301,750, respectively.

The upper level, where eligibility for pension cuts off, moves from $954,000 for a homeowner couple to $986,500, and for singles, the numbers shift from $634,750 to $656,500.

These new figures also affect the amount pensioners can earn before their pension starts to reduce under the income test. For couples, the income test cut-off point rises from $336 a fortnight to $360 a fortnight, while for singles, it increases from $190 a fortnight to $204 a fortnight.



Deeming rates (which are used to work out income from your financial assets) will remain at favourable levels. For singles: 0.25% on the first $60,400 and 2.25% on the balance, and for couples: 0.25% on the first $100,200 and 2.25% on the balance.

The government had previously promised these rates would be frozen until July 1, 2024, but thresholds have been adjusted slightly in line with inflation. This change will result in a small benefit to all income-tested pensioners.


View attachment 22149
For couples, the threshold at which their pension begins to decrease from the set amount will rise from $336 per fortnight to $360. Credit: Pixabay/pasja1000.



We know it can be a bit confusing when it comes to Centrelink and their tests, as they tend to use both the income test and the assets test. It's important to understand how they intersect: Centrelink will apply whichever test gives you the least pension.

However, some results can arise due to the disparity between the two tests. For example, if you're asset-tested, deeming is not relevant—it's only used for the income test.

In addition, the rule regarding the reduction of pension for a retired couple when their income exceeds $360 per fortnight does not apply to pensioners who are subject to an assets test.



Let us provide you with an example that might help. Imagine a couple named Jack and Jill. They own their own home and have a total of $600,000 in assets that can be assessed. Out of this amount, $550,000 consists of financial assets, which are subject to deeming. Since they fall under the assets test, their pension will increase from $530 per fortnight to $580 per fortnight for each individual after June 30.

As per the assets test, Jack and Jill can earn up to $36,000 annually without any negative impact on their pension. Under the proposed adjusted deeming rules, their $550,000 in financial assets would be considered as earning $10,000 per year. This means they have the flexibility to earn an additional $26,000 per year without affecting their pension.

If you click on this link, you'll have the option to download the new pension charts. Noel Whittaker, one of Australia's foremost financial commentators, also has a website where you can use the age pension calculator and the deeming calculator, both of which have been updated with the latest figures. Feel free to experiment with these tools and gain a better understanding of how the changes may affect you.

Key Takeaways

  • Changes to the pension are coming in Australia from July 1, adjusting thresholds for inflation.
  • Many part-pensioners will now move to a full pension, and some previously ineligible people will be eligible to start claiming a part pension.
  • The new numbers also increase the amount pensioners can earn before their pension starts to reduce under the income test.
  • As the rules change, it's advised to review your position and see if any small changes could potentially increase your cash flow.



Now, we know we've thrown a lot of numbers and changes your way, but the bottom line is that these adjustments should mean more money and flexibility for many SDC members. As the rules change, it's essential to review your situation and consider whether making small adjustments could increase your cash flow.

Remember, knowledge is power. Remain informed of these crucial pension changes, and ensure that you make the most out of the increased benefits. Don't forget to share this news with your friends and loved ones so everyone is aware of these important changes coming from July 1.
i was on a cruise once and the biggest whingers were the australians. NOT THE POMS.
 

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