From 1 July 2023 there will be significant changes to the thresholds that govern eligibility for the Age Pension.  Here's what you need to know.

From 1 July the income and asset thresholds that determine how much pensioners are paid will be adjusted for inflation.

Although the rate of age pension payment won’t change, the thresholds that govern the eligibility and how much Age Pension is paid will, bringing a welcome boost to the cash flow of many pensioners dealing with increased living costs.

What this means is that more people will qualify for the Age Pension and the Centrelink Pensioner Concession Card, and some Australians who were receiving part-pensions may be eligible to receive the full pension.

The Centrelink Pensioner Concession Card is particularly valuable in the current economic environment, providing concessions on items such as the cost of medicines, utilities, car registration, and council rates.

The eligibility age for the Age Pension will also increase in the new financial year to 67 for those born on or after 1 January 1957. The pension age has been gradually increasing over the past few years, and this is the last legislated increase.

Here's what changing from 1 July:

Income threshold increasing

• Single pensioners will be able to earn $204* a fortnight - up from $190 a fortnight - and still be eligible for the full single pension.
• Couple pensioners will be able to earn $360* a fortnight - up from $336 a fortnight - and still be eligible for the full amount.
• Once this threshold is exceeded, the pension amount is reduced by 50 cents for every dollar over $204 or $360, respectively.
• The cut-off point will be $2,332 per fortnight for singles and $3,568 per fortnight for couples.

Asset threshold increasing

• Single homeowners will be able to have assets of $301,750 and receive the full pension, while single non-homeowners can have assets of $543,750. These are increases of $21,750 and $39,250, respectively.
• Couple homeowners will be able to have combined assets of $451,500 and receive the full pension, while couple non-homeowners can have $693,500. An increase of $32,500 and $50,000.
• Single homeowners will be able to have up to $656,500 of assets and receive a part pension, while single non-homeowners will be able to have $898,500. An increase of $21,750 and $39,250.
• For couples, the cut-off threshold will increase to $986,500 for homeowners and $1,228,500 for non-homeowners. These are increases of $32,500 and $50,000, respectively.

For more information regarding the Age Pension including eligibility, the various rates and how they apply, check out Services Australia.

If you have any questions, please contact your Shadforth adviser.

*If you earn income from employment sources, you may be eligible for the Work Bonus. This isn’t an additional payment, but instead exempts some of your fortnightly employment income from assessment.