​

The news we've all been waiting for is finally here: those on the Age Pension, Disability Support Pension, and Carer Payments will receive a much-needed increase in their payments from the 20th of September, 2023. That’s right, it’s indexation time again.

Here are the specifics: an increase of $32.70 per fortnight for single pensioners and $49.40 for couples ($24.70 each) is on the cards.

What does September 20 mean for your pension? Image Credit: Shutterstock

What does that mean? Pulling out the calculator, it brings the maximum fortnightly rate up to $1,096.70 for singles and $1,653.40 for couples ($826.70 each), to save you the maths!

Please note the figures above include the pension and energy supplements.

Single veterans on a service pension will also receive the additional $32.70, bringing the service pension to $1096.70 a fortnight, while veterans on the Disability Compensation Payment (Special Rate), known as the Totally and Permanently Incapacitated Payment, will receive an additional $53 a fortnight, increasing their payment to $1729.20.

Age pension rates for a single person, applicable from 20 September 2023 to 19 March 2024. Source: Services Australia.

Age pension rates for a couple (living together), applicable from 20 September 2023 to 19 March 2024. Source: Services Australia.

However, let’s address the elephant in the room: while it seems substantial—and don’t get us wrong, we're not ungrateful— experts are saying that the current system still leaves pensioners lagging behind inflation.

According to National Seniors Australia Chief Advocate Ian Henschke, 'more can be done to support older people doing it tough, as recent National Seniors research showed a greater proportion of people with low incomes and those who are renting are suffering from cost-of-living pressures’.

'We recently heard from a couple who, despite receiving the pension, were paying $920 a fortnight in rent, leaving them with only $907.40 with which to pay for food, fuel, utilities, and other expenses.' he continued.

While this boost is much needed, will it be enough?

Meanwhile, pensioners are not the only group who will receive an increase in their payments this month.

Single JobSeeker and ABSTUDY recipients aged over 22 with no children will now receive an extra $56.10 per fortnight, bringing their basic rate up to $749.20, while couples will each receive an additional $54.80. For JobSeekers aged 55 and over, the payment will rise from $745.20 to $802.50 (after nine months).

These figures include the $40 JobSeeker increase announced in the May Federal Budget.

Rent assistance

Centrelink also announced an increase in rent allowance payments. If you’re receiving the Age Pension, you may be entitled to rent assistance (including any non-government subsidised fees you may be paying a retirement village. To receive assistance, you must be paying a minimum amount of rent.

According to Centrelink, ‘This is in addition to the Consumer Price Index (CPI) increase on the same date.’

‘We’ll automatically pay you any increase in Rent Assistance that you’re eligible for from 20 September 2023.’

Single Aussies receiving Commonwealth Rent Assistance will see maximum payment rates lift from $157.20 to $184.80. While couples will receive an extra $52 per fortnight ($26 each) with the allowance rising from $148 per fortnight to $174.

These rent assistance figures apply from 20 September 2023. Source: Services Australia.

Experts say

The Australian Institute of Health and Welfare (AIHW) estimates that two in three (67%) Australians aged 65 and over receive an income support payment.

As Deputy CEO of the Australian Council of Social Services (ACOSS) Edwina MacDonald explains, people who rely on income support are facing extreme financial pressure, with many being unable to afford even the most basic of life's necessities.

'Australia's income support payments are among the lowest in wealthy nations and do not cover the essentials of life such as rent, energy and food, causing serious harm to those who rely on them,' she said.

‘People are regularly skipping meals, going without heating and cooling, forgoing essential medication and medical care, and experiencing social isolation.’

‘We must raise income support payments to at least the pension rate—currently $76 a day—to lift people out of poverty, improve wellbeing and support people to participate in employment and society.’

Eligibility changes

These increases will also have an immediate effect on the threshold levels of eligible applicants, meaning that some seniors may be able to apply for the Age Pension (or a part-pension at least) for the first time.

Even if you are close to the cut-off, with just a few thousand dollars separating you from the threshold, there are also legal and legitimate means by which you can possibly bring yourself under the limit.

For single pensioners, the minimum you can receive as a payment is estimated to be $57.20 per fortnight (or around $1,487.20 per annum). For couples, this estimate jumps to a combined $86.20 per fortnight or $2,241.20 per annum.

Additionally, holding a Pensioner Concession Card can provide you with considerable savings. According to the Association of Independent Retirees, possessing the card can result in an estimated $7,000 worth of yearly discounts before factoring in that many businesses offer even further discounts to Pensioner Concession cardholders. We’ve compiled a list of handy discounts on utilities, travel and shopping here.

Income limits for Commonwealth Seniors Health Card recipients will also be indexed, increasing by $5400 to $95,400 per annum for singles and by $8640 to $152,640 per annum for couples combined.

Income and asset test changes

But now, let’s take a look at the other two main tests: the income test and the big one—the asset test.

Income test

Under Centrelink's income test, single recipients can now earn up to $2,397.40 of assessable income every fortnight before risking being kicked off the pension. Couples receive an allowance of $3,666.80 (combined) a fortnight.

You can earn up to $300 per person per fortnight (up to $11,800 per year) from working, and this amount is not included in the Age Pension income test. This is known as the ‘work bonus’. Please note that the maximum annual credit for the work bonus has been temporarily increased from $7,800 to $11,800 for the 2023 calendar year.

Asset test

Thanks to the September changes this year, home-owning singles can have up to $667,500 in assets before losing their pension, and the same goes for home-owning couples—up to a $1.003 million.

Plus, if you don't own a home, you can have an extra $242,000 in assets before losing pension eligibility.

Deeming rates

It's worth noting, however, that income generation from cash, bullion, and other investments are assessed differently—all of these combined are ‘deemed’ to be earning interest at the rate set by the government.

So what are these rates? Currently (and frozen until July 2024), the first $60,400 of income for a single is deemed to be earning 0.25% interest, with the remainder of investments deemed to be earning 2.25%.

Couples' lower income threshold is set at $100,200 combined, with all the income above this amount deemed to be earning interest at the rate of 2.25%.

If you just missed the threshold

If you do find yourself just missing the threshold mark—for example, because of the asset test—then there are ways to potentially boost your pension payment from Centrelink.

For starters, investing moderately in activities such as travel or renovations to the home. Under the asset test, every $1,000 spent on a non-asset (for example, on a holiday) can earn you up to an extra $3 a fortnight from Centrelink. You may be wondering why you can renovate your home. Well, your home is excluded from the asset test (provided it sits on less than 2 hectares and is used for private purposes)!

Likewise, by investing your funds into a new car or caravan, could increase your payments by reducing the balance in your bank account (and your ability to earn an ‘income’ on the balance). As a car is an asset, you will need to advise Centrelink of the purchase.

Something else to think about is making generous gifts of up to $10,000 to your loved ones, which, although limits apply, can reduce your asset value and, therefore, potentially enhance your pension eligibility. You can make small annual gifts of up to a maximum of $10,000 a year (and a max of $30,000 over five years).

While it’s not a cheerful subject, you might like to think about prepaying your funeral costs. Up to $15,000 can be allocated to this expense and will be exempt from future means testing.

We also covered this in a previous article: Should you reduce your assets to be eligible for the Age Pension?

Key Takeaways

• Starting 20 September 2023, single age pensioners will receive an increase of $32.70 a fortnight, and couples will receive an extra $49.40 ($24.70 each), resulting from increased Centrelink pension payment rates and thresholds.
• The minimum fortnightly amount pensioners can receive is now $57.20 for singles and a combined $86.20 for couples, along with benefits like the Pension Concession card, which enables discounts on utilities and charges.
• The Australian Institute of Health and Welfare estimates that two-thirds of Australians aged 65 and over receive an income support payment.
• Single JobSeeker and ABSTUDY recipients aged over 22 with no children and couples will also receive an increase to their payments.
• ACOSS Deputy CEO Edwina MacDonald argued that Australia's income support payments are among the lowest in wealthy nations and are causing serious harm as they do not cover essential costs.
• The changes in means testing now permits a home-owning single to have up to $667,500 before losing their part pension, and home-owning couples can have up to $1.003 million. The family home is not included in means testing.
• According to Centrelink’s income test rules, a single can earn $2,397.40 of Centrelink assessable income per fortnight and couples a combined amount of $3,666.80 a fortnight before being taken off the pension.

Of course, you should remember that this article is of a general nature. While we do our best, we’re not financial experts and nothing in this article should be construed as financial advice.

Before making any financial or legal decision, seek out independent, licensed financial services or legal advice to decide whether it is right for you.

So, while this is encouraging news, we also acknowledge that for many, the struggle is still real. We hope these payments will make a difference.

Will this increase help you with your regular expenses? Or does an extra $32.70 (singles) or $49.40 (couples) barely scratch the surface? We’d love to hear from you.

 

[jlgittins]

​

The news we've all been waiting for is finally here: those on the Age Pension, Disability Support Pension, and Carer Payments will receive a much-needed increase in their payments from the 20th of September, 2023. That’s right, it’s indexation time again.

Here are the specifics: an increase of $32.70 per fortnight for single pensioners and $49.40 for couples ($24.70 each) is on the cards.

View attachment 29291

What does September 20 mean for your pension? Image Credit: Shutterstock

What does that mean? Pulling out the calculator, it brings the maximum fortnightly rate up to $1,096.70 for singles and $1,653.40 for couples ($826.70 each), to save you the maths!

Please note the figures above include the pension and energy supplements.

Single veterans on a service pension will also receive the additional $32.70, bringing the service pension to $1096.70 a fortnight, while veterans on the Disability Compensation Payment (Special Rate), known as the Totally and Permanently Incapacitated Payment, will receive an additional $53 a fortnight, increasing their payment to $1729.20.

View attachment 29293

Age pension rates for a single person, applicable from 20 September 2023 to 19 March 2024. Source: Services Australia.

View attachment 29292

Age pension rates for a couple (living together), applicable from 20 September 2023 to 19 March 2024. Source: Services Australia.

However, let’s address the elephant in the room: while it seems substantial—and don’t get us wrong, we're not ungrateful— experts are saying that the current system still leaves pensioners lagging behind inflation.

According to National Seniors Australia Chief Advocate Ian Henschke, 'more can be done to support older people doing it tough, as recent National Seniors research showed a greater proportion of people with low incomes and those who are renting are suffering from cost-of-living pressures’.

'We recently heard from a couple who, despite receiving the pension, were paying $920 a fortnight in rent, leaving them with only $907.40 with which to pay for food, fuel, utilities, and other expenses.' he continued.

While this boost is much needed, will it be enough?

Meanwhile, pensioners are not the only group who will receive an increase in their payments this month.

Single JobSeeker and ABSTUDY recipients aged over 22 with no children will now receive an extra $56.10 per fortnight, bringing their basic rate up to $749.20, while couples will each receive an additional $54.80. For JobSeekers aged 55 and over, the payment will rise from $745.20 to $802.50 (after nine months).

These figures include the $40 JobSeeker increase announced in the May Federal Budget.

Rent assistance

Centrelink also announced an increase in rent allowance payments. If you’re receiving the Age Pension, you may be entitled to rent assistance (including any non-government subsidised fees you may be paying a retirement village. To receive assistance, you must be paying a minimum amount of rent.

According to Centrelink, ‘This is in addition to the Consumer Price Index (CPI) increase on the same date.’

‘We’ll automatically pay you any increase in Rent Assistance that you’re eligible for from 20 September 2023.’

Single Aussies receiving Commonwealth Rent Assistance will see maximum payment rates lift from $157.20 to $184.80. While couples will receive an extra $52 per fortnight ($26 each) with the allowance rising from $148 per fortnight to $174.

View attachment 29294

These rent assistance figures apply from 20 September 2023. Source: Services Australia.

Experts say

The Australian Institute of Health and Welfare (AIHW) estimates that two in three (67%) Australians aged 65 and over receive an income support payment.

As Deputy CEO of the Australian Council of Social Services (ACOSS) Edwina MacDonald explains, people who rely on income support are facing extreme financial pressure, with many being unable to afford even the most basic of life's necessities.

'Australia's income support payments are among the lowest in wealthy nations and do not cover the essentials of life such as rent, energy and food, causing serious harm to those who rely on them,' she said.

‘People are regularly skipping meals, going without heating and cooling, forgoing essential medication and medical care, and experiencing social isolation.’

‘We must raise income support payments to at least the pension rate—currently $76 a day—to lift people out of poverty, improve wellbeing and support people to participate in employment and society.’

Eligibility changes

These increases will also have an immediate effect on the threshold levels of eligible applicants, meaning that some seniors may be able to apply for the Age Pension (or a part-pension at least) for the first time.

Even if you are close to the cut-off, with just a few thousand dollars separating you from the threshold, there are also legal and legitimate means by which you can possibly bring yourself under the limit.

For single pensioners, the minimum you can receive as a payment is estimated to be $57.20 per fortnight (or around $1,487.20 per annum). For couples, this estimate jumps to a combined $86.20 per fortnight or $2,241.20 per annum.

Additionally, holding a Pensioner Concession Card can provide you with considerable savings. According to the Association of Independent Retirees, possessing the card can result in an estimated $7,000 worth of yearly discounts before factoring in that many businesses offer even further discounts to Pensioner Concession cardholders. We’ve compiled a list of handy discounts on utilities, travel and shopping here.

Income limits for Commonwealth Seniors Health Card recipients will also be indexed, increasing by $5400 to $95,400 per annum for singles and by $8640 to $152,640 per annum for couples combined.

Income and asset test changes

But now, let’s take a look at the other two main tests: the income test and the big one—the asset test.

Income test

Under Centrelink's income test, single recipients can now earn up to $2,397.40 of assessable income every fortnight before risking being kicked off the pension. Couples receive an allowance of $3,666.80 (combined) a fortnight.

You can earn up to $300 per person per fortnight (up to $11,800 per year) from working, and this amount is not included in the Age Pension income test. This is known as the ‘work bonus’. Please note that the maximum annual credit for the work bonus has been temporarily increased from $7,800 to $11,800 for the 2023 calendar year.

Asset test

Thanks to the September changes this year, home-owning singles can have up to $667,500 in assets before losing their pension, and the same goes for home-owning couples—up to a $1.003 million.

Plus, if you don't own a home, you can have an extra $242,000 in assets before losing pension eligibility.

Deeming rates

It's worth noting, however, that income generation from cash, bullion, and other investments are assessed differently—all of these combined are ‘deemed’ to be earning interest at the rate set by the government.

So what are these rates? Currently (and frozen until July 2024), the first $60,400 of income for a single is deemed to be earning 0.25% interest, with the remainder of investments deemed to be earning 2.25%.

Couples' lower income threshold is set at $100,200 combined, with all the income above this amount deemed to be earning interest at the rate of 2.25%.

If you just missed the threshold

If you do find yourself just missing the threshold mark—for example, because of the asset test—then there are ways to potentially boost your pension payment from Centrelink.

For starters, investing moderately in activities such as travel or renovations to the home. Under the asset test, every $1,000 spent on a non-asset (for example, on a holiday) can earn you up to an extra $3 a fortnight from Centrelink. You may be wondering why you can renovate your home. Well, your home is excluded from the asset test (provided it sits on less than 2 hectares and is used for private purposes)!

Likewise, by investing your funds into a new car or caravan, could increase your payments by reducing the balance in your bank account (and your ability to earn an ‘income’ on the balance). As a car is an asset, you will need to advise Centrelink of the purchase.

Something else to think about is making generous gifts of up to $10,000 to your loved ones, which, although limits apply, can reduce your asset value and, therefore, potentially enhance your pension eligibility. You can make small annual gifts of up to a maximum of $10,000 a year (and a max of $30,000 over five years).

While it’s not a cheerful subject, you might like to think about prepaying your funeral costs. Up to $15,000 can be allocated to this expense and will be exempt from future means testing.

We also covered this in a previous article: Should you reduce your assets to be eligible for the Age Pension?

Key Takeaways

• Starting 20 September 2023, single age pensioners will receive an increase of $32.70 a fortnight, and couples will receive an extra $49.40 ($24.70 each), resulting from increased Centrelink pension payment rates and thresholds.
• The minimum fortnightly amount pensioners can receive is now $57.20 for singles and a combined $86.20 for couples, along with benefits like the Pension Concession card, which enables discounts on utilities and charges.
• The Australian Institute of Health and Welfare estimates that two-thirds of Australians aged 65 and over receive an income support payment.
• Single JobSeeker and ABSTUDY recipients aged over 22 with no children and couples will also receive an increase to their payments.
• ACOSS Deputy CEO Edwina MacDonald argued that Australia's income support payments are among the lowest in wealthy nations and are causing serious harm as they do not cover essential costs.
• The changes in means testing now permits a home-owning single to have up to $667,500 before losing their part pension, and home-owning couples can have up to $1.003 million. The family home is not included in means testing.
• According to Centrelink’s income test rules, a single can earn $2,397.40 of Centrelink assessable income per fortnight and couples a combined amount of $3,666.80 a fortnight before being taken off the pension.

Of course, you should remember that this article is of a general nature. While we do our best, we’re not financial experts and nothing in this article should be construed as financial advice.

Before making any financial or legal decision, seek out independent, licensed financial services or legal advice to decide whether it is right for you.

So, while this is encouraging news, we also acknowledge that for many, the struggle is still real. We hope these payments will make a difference.

Will this increase help you with your regular expenses? Or does an extra $32.70 (singles) or $49.40 (couples) barely scratch the surface? We’d love to hear from you.

We have been told our rental has been sold,we were paying $380 per week,so the only rental we can find anything like we had is $450 a week,so we're does these rises leave us and a great number more,(up ship creek I believe,)the government needs to get out into the world with the rest of us,

 

[Pink lion]

I am Grateful, yes, I feel full of great. It used to grate just making the bills hey mate, it's something, sure its bugger all of a pension rise, considering nobody is cheating about getting older and electricity rent petrol etc,are all on the rise.

Australia despite windfall profit statements must in actuality be just above the poverty line with our politicians having to make their own lunches and catch buses to work because the trains don't often run, it's not easy dolling out money in the right way.

There are things to buy that Australia needs that cost MILLIONS and all due care must be taken to not waste anything.

Over the internet we hear that Australia supplies the cheapest most effective drones in the world evidently to the Ukrainian/Russian war (it's not a conflict) and yet (because of kickbacks I guess) we pay Millions to purchase them from other countries instead of having our mob make them.

With this sort of financial management, it's a wonder we got this small increase, so mums the word. Mustn't complain you know.

Ha ha ha. Oh God, I wish I was a film producer; its a writers dream, I could make the most humorously insightful television series on Australian politics and what happens behind the scenes, by doing nothing more than airing what they actually do. Yes minister, was a documentary on English Politics. It took me about three minutes into the first episode to realize it was extremely close to the truth.

A Blackadder meets Yes Minister type of sit com showing the world true decision making at its finest... Give them all another Pay rise I say. hear! hear! (that is a joke okay, in case nobody spotted it) Geeze it must be great to be the banker (not a misprint) with all the cash and your own real-life monopoly board. Australia you figure it out a game for 5year olds and up.... it could sell as a board game ...

if it hasn't already. ha ha ha

 

[siameezer]

It's actually $28,514, plus you get discounts on your electricity and gas as well as other concessions.

Also keep in mind that you had some 40 to 50 years of employment during which time you could - or rather should have saved towards your retirement.

To put it simply ... pull your head in and try and be a little more compassionate and empathetic. Are you that cold that you don't realise not everyone could have done what you suggest? Some of us had a chronic illness and couldn't work full-time but still battled on, not wanting to be a burden on people. We barely made it from week to week but you wanted us to "save towards our retirement"? You might be one of the lucky ones ... not everyone gets to sit on the pedestal you are on!

 

[Littleboy8]

To put it simply ... pull your head in and try and be a little more compassionate and empathetic. Are you that cold that you don't realise not everyone could have done what you suggest? Some of us had a chronic illness and couldn't work full-time but still battled on, not wanting to be a burden on people. We barely made it from week to week but you wanted us to "save towards our retirement"? You might be one of the lucky ones ... not everyone gets to sit on the pedestal you are on!

Couldn’t have said it better myself well done

 

[Veggiepatch]

I am on Centrelink's Jobseeker benefit and here is a rundown of the last fortnightly payment I received and the two subsequent payments. Payments are subject to deductions such as Child Support as well as Centrepay deductions to a no interest loan and rent (not deducted from the gross payment amount).

12 September 2013 $918.50
26 September 2023 $954.88*
10 October 2023 $1003.40
* denotes a pro rata increase due to the payment date falling before implementation of the full amount. Do not include a biennial telephone allowance of $35.60.

As you can see, the full increase is $84.90 per fortnight, something not to be sneezed at.

If you aren't satisfied, there is always North Korea. Here, "according to North Korea’s social security system, citizens are supposed to receive rations and a pension upon retirement. The guidelines call for the average citizen to get 300 grams of food daily and 30% of the salary they received before retirement".

 

[Veggiepatch]

To expand on the North Korean pension situation, the high end wage for a state assigned worker is $A4.65 per month. Using this figure as a yardstick, $A56 per year for a worker, a pensioner will receive a paltry $A19 a year.

Hardly enough to live on with rice attracting a price of about $A1.60 per kilo. There goes a third of the monthly wage! And the full monthly pension! That's what happens when about 50% of a country's gross national expenditure is spent on the military.

 

[mitchellowe]

​

The news we've all been waiting for is finally here: those on the Age Pension, Disability Support Pension, and Carer Payments will receive a much-needed increase in their payments from the 20th of September, 2023. That’s right, it’s indexation time again.

Here are the specifics: an increase of $32.70 per fortnight for single pensioners and $49.40 for couples ($24.70 each) is on the cards.

View attachment 29291

What does September 20 mean for your pension? Image Credit: Shutterstock

What does that mean? Pulling out the calculator, it brings the maximum fortnightly rate up to $1,096.70 for singles and $1,653.40 for couples ($826.70 each), to save you the maths!

Please note the figures above include the pension and energy supplements.

Single veterans on a service pension will also receive the additional $32.70, bringing the service pension to $1096.70 a fortnight, while veterans on the Disability Compensation Payment (Special Rate), known as the Totally and Permanently Incapacitated Payment, will receive an additional $53 a fortnight, increasing their payment to $1729.20.

View attachment 29293

Age pension rates for a single person, applicable from 20 September 2023 to 19 March 2024. Source: Services Australia.

View attachment 29292

Age pension rates for a couple (living together), applicable from 20 September 2023 to 19 March 2024. Source: Services Australia.

However, let’s address the elephant in the room: while it seems substantial—and don’t get us wrong, we're not ungrateful— experts are saying that the current system still leaves pensioners lagging behind inflation.

According to National Seniors Australia Chief Advocate Ian Henschke, 'more can be done to support older people doing it tough, as recent National Seniors research showed a greater proportion of people with low incomes and those who are renting are suffering from cost-of-living pressures’.

'We recently heard from a couple who, despite receiving the pension, were paying $920 a fortnight in rent, leaving them with only $907.40 with which to pay for food, fuel, utilities, and other expenses.' he continued.

While this boost is much needed, will it be enough?

Meanwhile, pensioners are not the only group who will receive an increase in their payments this month.

Single JobSeeker and ABSTUDY recipients aged over 22 with no children will now receive an extra $56.10 per fortnight, bringing their basic rate up to $749.20, while couples will each receive an additional $54.80. For JobSeekers aged 55 and over, the payment will rise from $745.20 to $802.50 (after nine months).

These figures include the $40 JobSeeker increase announced in the May Federal Budget.

Rent assistance

Centrelink also announced an increase in rent allowance payments. If you’re receiving the Age Pension, you may be entitled to rent assistance (including any non-government subsidised fees you may be paying a retirement village. To receive assistance, you must be paying a minimum amount of rent.

According to Centrelink, ‘This is in addition to the Consumer Price Index (CPI) increase on the same date.’

‘We’ll automatically pay you any increase in Rent Assistance that you’re eligible for from 20 September 2023.’

Single Aussies receiving Commonwealth Rent Assistance will see maximum payment rates lift from $157.20 to $184.80. While couples will receive an extra $52 per fortnight ($26 each) with the allowance rising from $148 per fortnight to $174.

View attachment 29294

These rent assistance figures apply from 20 September 2023. Source: Services Australia.

Experts say

The Australian Institute of Health and Welfare (AIHW) estimates that two in three (67%) Australians aged 65 and over receive an income support payment.

As Deputy CEO of the Australian Council of Social Services (ACOSS) Edwina MacDonald explains, people who rely on income support are facing extreme financial pressure, with many being unable to afford even the most basic of life's necessities.

'Australia's income support payments are among the lowest in wealthy nations and do not cover the essentials of life such as rent, energy and food, causing serious harm to those who rely on them,' she said.

‘People are regularly skipping meals, going without heating and cooling, forgoing essential medication and medical care, and experiencing social isolation.’

‘We must raise income support payments to at least the pension rate—currently $76 a day—to lift people out of poverty, improve wellbeing and support people to participate in employment and society.’

Eligibility changes

These increases will also have an immediate effect on the threshold levels of eligible applicants, meaning that some seniors may be able to apply for the Age Pension (or a part-pension at least) for the first time.

Even if you are close to the cut-off, with just a few thousand dollars separating you from the threshold, there are also legal and legitimate means by which you can possibly bring yourself under the limit.

For single pensioners, the minimum you can receive as a payment is estimated to be $57.20 per fortnight (or around $1,487.20 per annum). For couples, this estimate jumps to a combined $86.20 per fortnight or $2,241.20 per annum.

Additionally, holding a Pensioner Concession Card can provide you with considerable savings. According to the Association of Independent Retirees, possessing the card can result in an estimated $7,000 worth of yearly discounts before factoring in that many businesses offer even further discounts to Pensioner Concession cardholders. We’ve compiled a list of handy discounts on utilities, travel and shopping here.

Income limits for Commonwealth Seniors Health Card recipients will also be indexed, increasing by $5400 to $95,400 per annum for singles and by $8640 to $152,640 per annum for couples combined.

Income and asset test changes

But now, let’s take a look at the other two main tests: the income test and the big one—the asset test.

Income test

Under Centrelink's income test, single recipients can now earn up to $2,397.40 of assessable income every fortnight before risking being kicked off the pension. Couples receive an allowance of $3,666.80 (combined) a fortnight.

You can earn up to $300 per person per fortnight (up to $11,800 per year) from working, and this amount is not included in the Age Pension income test. This is known as the ‘work bonus’. Please note that the maximum annual credit for the work bonus has been temporarily increased from $7,800 to $11,800 for the 2023 calendar year.

Asset test

Thanks to the September changes this year, home-owning singles can have up to $667,500 in assets before losing their pension, and the same goes for home-owning couples—up to a $1.003 million.

Plus, if you don't own a home, you can have an extra $242,000 in assets before losing pension eligibility.

Deeming rates

It's worth noting, however, that income generation from cash, bullion, and other investments are assessed differently—all of these combined are ‘deemed’ to be earning interest at the rate set by the government.

So what are these rates? Currently (and frozen until July 2024), the first $60,400 of income for a single is deemed to be earning 0.25% interest, with the remainder of investments deemed to be earning 2.25%.

Couples' lower income threshold is set at $100,200 combined, with all the income above this amount deemed to be earning interest at the rate of 2.25%.

If you just missed the threshold

If you do find yourself just missing the threshold mark—for example, because of the asset test—then there are ways to potentially boost your pension payment from Centrelink.

For starters, investing moderately in activities such as travel or renovations to the home. Under the asset test, every $1,000 spent on a non-asset (for example, on a holiday) can earn you up to an extra $3 a fortnight from Centrelink. You may be wondering why you can renovate your home. Well, your home is excluded from the asset test (provided it sits on less than 2 hectares and is used for private purposes)!

Likewise, by investing your funds into a new car or caravan, could increase your payments by reducing the balance in your bank account (and your ability to earn an ‘income’ on the balance). As a car is an asset, you will need to advise Centrelink of the purchase.

Something else to think about is making generous gifts of up to $10,000 to your loved ones, which, although limits apply, can reduce your asset value and, therefore, potentially enhance your pension eligibility. You can make small annual gifts of up to a maximum of $10,000 a year (and a max of $30,000 over five years).

While it’s not a cheerful subject, you might like to think about prepaying your funeral costs. Up to $15,000 can be allocated to this expense and will be exempt from future means testing.

We also covered this in a previous article: Should you reduce your assets to be eligible for the Age Pension?

Key Takeaways

• Starting 20 September 2023, single age pensioners will receive an increase of $32.70 a fortnight, and couples will receive an extra $49.40 ($24.70 each), resulting from increased Centrelink pension payment rates and thresholds.
• The minimum fortnightly amount pensioners can receive is now $57.20 for singles and a combined $86.20 for couples, along with benefits like the Pension Concession card, which enables discounts on utilities and charges.
• The Australian Institute of Health and Welfare estimates that two-thirds of Australians aged 65 and over receive an income support payment.
• Single JobSeeker and ABSTUDY recipients aged over 22 with no children and couples will also receive an increase to their payments.
• ACOSS Deputy CEO Edwina MacDonald argued that Australia's income support payments are among the lowest in wealthy nations and are causing serious harm as they do not cover essential costs.
• The changes in means testing now permits a home-owning single to have up to $667,500 before losing their part pension, and home-owning couples can have up to $1.003 million. The family home is not included in means testing.
• According to Centrelink’s income test rules, a single can earn $2,397.40 of Centrelink assessable income per fortnight and couples a combined amount of $3,666.80 a fortnight before being taken off the pension.

Of course, you should remember that this article is of a general nature. While we do our best, we’re not financial experts and nothing in this article should be construed as financial advice.

Before making any financial or legal decision, seek out independent, licensed financial services or legal advice to decide whether it is right for you.

So, while this is encouraging news, we also acknowledge that for many, the struggle is still real. We hope these payments will make a difference.

Will this increase help you with your regular expenses? Or does an extra $32.70 (singles) or $49.40 (couples) barely scratch the surface? We’d love to hear from you.

i noticed you did not mention single parents who are going to receive $156 increase PLUS $27 more dollars than pensioners as well for rent relief Maybe this govt is breeding not only bludgers and single parents for having children they cannot afford by rewarding them with better benefits THIS IS NOT ABOUT GENUINE UNEMPLOYED AND SINGLE PARENTS WHO HAVE NO EXCUSE BECAUSE THEIR IS NO EXCUSE FOR HAVING ANY CHILDREN YOU CANNOT AFFORD TO BRING UP.WHAT WOIULD THEY DO IF CENTRELINC STOPPED PAYING FOR MISTAKES THAT SEEM TO HASPPEN TO OFTEN

THATS 5 TIMES MORE THAN THE AGED PENSION INCREASE

 

[mitchellowe]

I missed it , have just come back from a hospital appointment, are the disabled getting anything do you know please ?

HALF AS MUCH AS A DOLLIE AND 5 TIMES LESS THAN A SINGLE PARENT

 

[quacker19520]

You mentioned an increase to the carers pension, but no details. Could you advise please.Our expenses are just as much as everyone elses.

What about carer allowance a measly 144.50 a fortnight theres been no increase for years,

 

[mitchellowe]

CARERS AND THE DISABLED AND AGED PENSIONERS HAVE NOT RECEIVED AN EXTRA INCREASE OTHEY THAN 6 MONTHLY PAY INCREASE SINCE I DONOT KNOW WHEN and yet single parents and the unemployed have received at least 5 extra payments in the last couple of years plus $6000 more than the disabled ,carers and pensioners inj the stimulous package
ITSnot a bad way to live if two or 3 dollies share a place or get pregnant and have more than 1 child and live with someone where they are better off than some people who work for a living
Lets keep rewarding people who have children they cannot afford and permanent dollies by giving them moremoney than they deserve I am not talking about genuine people looking for work and i am not talking about genuine people who have children and work to support their children

 

[mitchellowe]

To put it simply ... pull your head in and try and be a little more compassionate and empathetic. Are you that cold that you don't realise not everyone could have done what you suggest? Some of us had a chronic illness and couldn't work full-time but still battled on, not wanting to be a burden on people. We barely made it from week to week but you wanted us to "save towards our retirement"? You might be one of the lucky ones ... not everyone gets to sit on the pedestal you are on!

IF u are talking to me then you do not know me 'MY wife was disabled for the last 10 years of her life and in constant pain and i had to give up work to be her carer .
After working over 50 years and get treated worse than a single parent and the dollies i had to use up our savings just to get by TRY living on a pension when $600f/n goes on medication not counting other necessities required to look after someone who has little control of their bodily functiond and you see dollies and single parents are getting bigger increases than those who worked all their lives and payed their dues

Couldn’t have said it better myself well done

10 years

 

[Littleboy8]

What about carer allowance a measly 144.50 a fortnight theres been no increase for years,

Go to the website

 

[mitchellowe]

YES 1

IF u are talking to me then you do not know me 'MY wife was disabled for the last 10 years of her life and in constant pain and i had to give up work to be her carer .
After working over 50 years and get treated worse than a single parent and the dollies i had to use up our savings just to get by TRY living on a pension when $600f/n goes on medication not counting other necessities required to look after someone who has little control of their bodily functiond and you see dollies and single parents are getting bigger increases than those who worked all their lives and payed their dues


10 years

10 years and i watched her dying in front off me
are u calling me a liar

 

[mustang]

Increase in rent assistance will be useful & any pension increase is good BUT I went to the pharmacy last week to collect medications! On getting to checkout I noticed that they were not 2 for 1 script medications. I was advised 2 for 1 medications are only if GP has written script out for 60 days & not 30 days, but 30 day scripts would have to be used prior to this happening! I still have a few 30 day scripts to go so no win there!
Then off to podiatry & GUESS WHAT - Medicare rebate had increased by $2 so podiatry has put their fee up by $2 - you guessed it, NO WIN THERE!!
AND TO TOP IT ALL OFF - petrol ️ increased 10c per litre - WHERE DOES ALL OUR PENSION MONEY GO?????

you should see your GP and get a care plan for podiatrist , I been doing this ,2 months ago apparently her rent went up and now she asked for $5.00 every visit, I don't mind that.

 

[Rob44]

Ah yes. Whilst the politicians look to increase their salaies so as to keep abreast of our pension increases. Now what did I read about Tasmania's Premiers'pay rise; was it not $161 000 a couple of months ago? As for our assorted town and city councillors; check out what Mebourne City Council allows for its Lord Mayor, Deputy Lord Mayor and Councillors. It's on the website, which I believe uses the word "allowances". $250 000 for the Lord Mayor, $127 000 for the Deputy LM and $57000 per Councillor if I recall correctly.

However, thanks to unbounding generosity of our Government and of course the taxpayer, I can totter off down to the coffee shop for those extra 5 or 6 cups of coffee a week.

 

[Veggiepatch]

HALF AS MUCH AS A DOLLIE AND 5 TIMES LESS THAN A SINGLE PARENT

I object to being called a "dollie".

FFS last time I looked, I was all male.

At least I think I was!

 

[Littleboy8]

I object to being called a "dollie".

FFS last time I looked, I was all male.

At least I think I was!

Ive blocked ml so I don’t have to read his content as he’s got mental problems everyone should do the same. I don’t feel he likes women whatsoever.

 

[Veggiepatch]

Ah yes. Whilst the politicians look to increase their salaies so as to keep abreast of our pension increases. Now what did I read about Tasmania's Premiers'pay rise; was it not $161 000 a couple of months ago? As for our assorted town and city councillors; check out what Mebourne City Council allows for its Lord Mayor, Deputy Lord Mayor and Councillors. It's on the website, which I believe uses the word "allowances". $250 000 for the Lord Mayor, $127 000 for the Deputy LM and $57000 per Councillor if I recall correctly.

However, thanks to unbounding generosity of our Government and of course the taxpayer, I can totter off down to the coffee shop for those extra 5 or 6 cups of coffee a week.

I'd be more prone to complaining about the exorbitant salaries that large corporations pay their CEOs.

 

[Veggiepatch]

I don’t feel he likes women whatsoever.

Good! That means he won't like me....

 

[mitchellowe]

I object to being called a "dollie".

FFS last time I looked, I was all male.

At least I think I was!

well what would you like to be called
unemployed living on other peoples hard work