Noel Whittaker is the author of Wills, Death & Taxes Made Simple and numerous other books on personal finance. Email: [email protected]​

The quarterly age pension adjustments came into play on 20 September, and thanks to inflation, all pensioners got an income boost. The pension rates are somewhat confusing because there are four changes a year: in July and January each year, they adjust the thresholds, and in September and March, they adjust the amount of pension paid. These changes can sometimes produce anomalous outcomes, and savvy pensioners should keep an eye on the changes, to see if they can tweak their situation to achieve better financial outcomes.

Go to my website, www.noelwhittaker.com.au, to download the new pension charts and play with the age pension calculator and the deeming calculator, both of which have been updated with the new numbers.

Image Credit: Shutterstock

The previous pension changes took effect from 1 July. Because they raised the thresholds but not the amount of the pension itself, only part-pensioners got an increase in their pension. This meant the most in-need pensioners – those under the asset and income thresholds – got no pension increase at all, despite record inflation. In fact, they went backwards. But part-pensioners who were just over the bottom threshold ended up with a full pension because of the threshold increase.

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[CliffE]

??

 

[NotNats]

Lost me

 

[Mika in the van]

I couldn’t be bothered reading all this Very long winded report.
But when you have to do the furniture value for the asset test; (we learnt from moving interstate and trying to sell most of it) it’s almost worthless. You may have paid $3000 for a lounge suite 2 years ago, but you’d be lucky to sell it for $500. That’s it’s true value now!

 

[IAN3005]

I couldn’t be bothered reading all this Very long winded report.
But when you have to do the furniture value for the asset test; (we learnt from moving interstate and trying to sell most of it) it’s almost worthless. You may have paid $3000 for a lounge suite 2 years ago, but you’d be lucky to sell it for $500. That’s it’s true value now!

I devalue my furniture by 10% every year. I don't know why I bother, as most of it was picked up off the side of the road.

 

[IAN3005]

What a joke....

 

[steamyjack]

What is not mentioned is the effect the increase has on your tax liabilities. The tax free threshold of $18200 has not increased in at least three years.So,although the purchasing power of your pension has gone backwards,your tax liability goes UP. It also affects the calculation of the low income tax offset because the income level at which it starts to taper off,is not indexed either. In my view,its total sleight of hand by the government.If pensions are to keep pace with the COL,then all relevant tax levels have to be indexed as well.