What July 1 brings for Aussie seniors

As July dawns, a new financial year brings a blend of goodies and grumbles for Aussies, especially our older crowd. Many payments and rules are being tweaked.

For example, the Age Pension itself gets a modest lift: from Monday, asset-tested couples will receive $34.50 extra per fortnight and singles $22.50. The government insists this is “cost of living relief” – essentially a two-handed indexation on welfare and wages. In practical terms, that’s about $585 more a year for a solo pensioner and around $897 for a couple (combined).



But it’s not all extra cash – some bills bite too.

Energy regulators in NSW, SA and Queensland are hiking electricity prices, and tobacco lovers will be hit with a sting: from July 1 menthol and certain flavour additives vanish from cigarette packs, while all packs become standardised, with extra quit messages inside.

In short, retirees may count a few more dollars in hand, but also face tougher new rules on the road (and in the smoking lounge).

The devil is in the details. While the headline pension rate barely changes, the thresholds around it do. Income and asset cut-offs are being lifted about 2.4%, meaning more people can qualify or keep a bigger pension.

For instance, the income test free area rises from $212 to $218 a fortnight for singles (and $372 to $380 for couples), letting you earn a little more before payments start to drop. On the assets side, a homeowner couple’s limit for a full pension increases from $470,000 to $481,500, and a single homeowner’s from $314,000 to $321,500.

Even the “deeming” thresholds on bank savings are nudged up: singles can now hold $64,200, earning the low 0.25% deemed rate (up from $62,600) before higher rates kick in.

As one explainer bluntly puts it, “the pension rate is not going u,p but increased income and asset thresholds mean thousands more will be entitled to benefits”. In other words, many older Aussies will stay or become eligible for at least a part pension, even if they work or own more assets.


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Image source: Seniors Discount Club



The ripple effects extend beyond pensions. Workers will see small pay bumps too – the Fair Work Commission granted a 3.5% rise in the minimum wage (now $24.95/hour), and the compulsory superannuation guarantee edges up from 11.5% to 12% of wages. That final 0.5% super boost may seem tiny, but over decades it can add a few tens of thousands to one’s nest egg.

Meanwhile, most Centrelink payments (disability, carers, veterans’ allowances, etc.) and related thresholds are indexed by 2.4% as well – the same as inflation. In raw terms, Centrelink beneficiaries are getting a smidge more, but critics note essentials like rent and power have already skyrocketed past 2.4%.

Every extra dollar can count in retirement. Analysts point out that a $6/fortnight lift in the pension free-income limit may seem trivial, but across a year that’s $156 – enough, they say, “to fund a weekend getaway or cover a few much-needed prescriptions”.

It’s these little increases that stitch into a slightly bigger safety net. (The flip side: fees and levies are also creeping up. For instance, Medicare levy surcharge thresholds tick higher, and some state road rules now bring heftier fines – say, failing to slow to 25 km/h for a broken-down vehicle can cost up to $1,648 in SA.)



Beyond wallets, daily life also shifts. One of the boldest moves is an anti-smoking push: from July 1 menthol cigarettes and other flavoured tobacco products will be banned.

Packs will standardise to 20 sticks each, lose any colours or ‘smooth’ branding, and come with fresh warning graphics. The Health Department says the goal is to cut the appeal of smoking and help people quit – though older smokers may bristle at the new “tasteless” reality.

Also on the roads, new cameras go live: AI-enabled speed cameras can now spot drivers using a phone, meaning fines for hands-free violations will be more certain. (In case you’re cruising by an emergency scene – remember, in many states the slow-down rule has tightened: e.g. in SA you must now drop to 25 km/h past breakdown crews.)


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Image source: Seniors Discount Club



Through all this, the idea is clear: indexation will keep benefits roughly in step with prices. Payments and thresholds have been upped by the same 2.4% CPI increase experienced in the past year. This means seniors shouldn’t see their pensions eaten alive by inflation, at least for now.

However, many retirement experts note that actual costs (especially housing, power and healthcare) have climbed faster than 2.4%, so much of the relief may be nominal. On balance, the mixed package of July 1 changes is unlikely to transform anyone’s life, but it does give a small breathing space.

For example, a couple on the full pension will now net around $56,000 per year (up from about $54,100), combining both partners, roughly $900 more annually. That might not buy a big holiday, but it could mean an extra treat now and then – a nice lunch out or a bit more heating in winter.



So what’s the final tally? Some Aussies will be a bit better off – thanks to higher pensions, wages, and super – but others will face bigger bills or new rules. It’s a bit like getting a small Christmas gift in your pocket, alongside an unwelcome fine in your mail.

As the year turns, we’re left with a question for our readers: How will you feel about these changes? Will you tuck away that extra pension cash for a rainy day, or splash it on something fun? Are you relieved by the slight pay rise, or worried about higher energy and stricter smoking laws?

Let us know – are you celebrating or commiserating this July 1?

Read more: Cost of living relief kicks in July 1: What Aussies can expect
 

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Good morning, are you intimating that the deeming rates will continue after 1July.? I have been led to believe that the deeming rates finish this year 30 June. I would love to get an exact figure asap. I am so confused.

Thank you, Ann ISELIN.
 
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It is obvious that not much is going to change for those that are really struggling.
I say make use of any free services out there. There are heaps of organisations that offer food, meals and hampers. Just search online. Every little bit helps, and even if you get a couple of days of food, you may be able to afford those medications you sometimes miss out on.
Love and best wishes to n all.
 
There is something I have never understood when looking at the difference in amounts applicable to couples compared to singles. According to the article above the assets of couples can be up to $158,000 more than my singles allowance. Now the way I see it couples live in one house, singles the same. They sit in their lounge at night with a light and tv on , singles do the same ( so probably use roughly the same energy cost). Couples probably use more hot water than singles (2 x showers), maybe they have 2 x cars ( 1 for singles) etc but I can’t for the life of me see how they can have up $158,000 more expenses and possessions that are included in the asset test than a single person. These differences in amounts don’t only apply to assets but are across the board. I don’t begrudge couples their extra payments,etc but surely singles benefits can be bought to a closer amount to couples than they currently are.
Yep, I’ll just continue to live in hope.
 
I am worried by the new rules telling us that we must slow down to 40km/h (in Vic) when passing an emergency or rescue vehicle with their lights (orange,blue and red or whatever) flashing. I recently travelled to Melbourne on the M8 and on a left hand bend near Ballarat I noticed a B-double parked on the emergency lane with his (or hers) hazard lights on. It was not until I was past the back of the broken down truck that I could see the heavy haulage rescue vehicle with all lights flashing in front of the B-Double. I passed at about 105kmh (110kmh zone) so could have received a heavy fine if caught. (If I was caught I haven’t received any notice yet). There should be warning signs or lights at the back of the broken down vehicle placed by the rescue personnel.
 
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I am worried by the new rules telling us that we must slow down to 40km/h (in Vic) when passing an emergency or rescue vehicle with their lights (orange,blue and red or whatever) flashing. I recently travelled to Melbourne on the M8 and on a left hand bend near Ballarat I noticed a B-double parked on the emergency lane with his (or hers) hazard lights on. It was not until I was past the back of the broken down truck that I could see the heavy haulage rescue vehicle with all lights flashing in front of the B-Double. I passed at about 105kmh (110kmh zone) so could have received a heavy fine if caught. (If I was caught I haven’t received any notice yet). There should be warning signs or lights at the back of the broken down vehicle placed by the rescue personnel.
I saw a Facebook post yesterday by South Australian Police, that you have to slow down to 25k's per hour past emergency vehicles in South Australia.
 
Great!

Reduce your speed from 100 kmh to 25 kmh, resulting in more crashes!

Dumb as dogshit idea!
It’s not too bad if you’re on a straight stretch of road & can see flashing lights ahead, but often, particularly in Tassie where we have a lot of bendy roads, it can be difficult, especially if you have cars behind you. We only have to slow down to 40 Kph, but can still be a shock. Maybe warning signs should be erected either side of whatever problem has occurred.
 
A weekend getaway for $156???
What planet would that be on???
The average cost for a motel room in Australia is $100 to $150 per night.

None of this is of any assistance to the person who is reliant just on the age pension.

Why do they think cost of living relief to the value of $66/ft is required by workers on the minimum wage and pensioners, who are just existing on considerably less, need nothing.

Will they give pensioners a $66/ft raise come next September. Of course not!!
Why not?? We are struggling more than the worker on the basic wage.
They now receive just a fraction less per week than pensioners get for a fortnight.

Politicians just gave themselves a $15,000/year pay rise. $205,798/year was the base salary of a politician as at July 2024 according to my Google search.
So just under $8,500/ft now, before all their lurks and perks, but they say the country can't afford to increase the age pensions to a "liveable" amount.

Even those pensioners who are now able to get a part pension are given to with one hand and then have it taken by an increase in deeming rates. We are forever chasing our tails around in diminishing circles.
 
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There is something I have never understood when looking at the difference in amounts applicable to couples compared to singles. According to the article above the assets of couples can be up to $158,000 more than my singles allowance. Now the way I see it couples live in one house, singles the same. They sit in their lounge at night with a light and tv on , singles do the same ( so probably use roughly the same energy cost). Couples probably use more hot water than singles (2 x showers), maybe they have 2 x cars ( 1 for singles) etc but I can’t for the life of me see how they can have up $158,000 more expenses and possessions that are included in the asset test than a single person. These differences in amounts don’t only apply to assets but are across the board. I don’t begrudge couples their extra payments,etc but surely singles benefits can be bought to a closer amount to couples than they currently are.
Yep, I’ll just continue to live in hope.
Well couples are more likely to have twice as many Drs visits, twice as many prescriptions, eat twice as much food, need twice as many clothes, wash twice as many clothes, perhaps they need glasses, hearing aids, etc. If you go out together to a Cafe you pay twice as much. Same for the movies or any other entertainment. Just for a start.
Obviously two people may have more assets, which is not unusual. But they are not allowed to have twice as many, nor do they get twice as much pension.
I actually find that I now manage better financially on my single pension than I did on the couples.
 
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