Age Pension rates increase: Assets and Income test

by James Coyle | Sep 7, 2023 | Centrelink Age Pension | 40 comments

The expected 20 September Age Pension changes have now been confirmed by Services Australia, the government department responsible for indexation of the Age Pension every March and September.

We reported a couple of weeks ago that we expected these changes to be in the order of $31 for singles and $23 each for couples, based upon increases to the Pensioner and Beneficiary Living Cost Index (PBLCI). We’re pleased to say that this is the case, and with the addition of the Age Pension supplement the final increases were $32.70 for singles and $24.70 each for couples. 

Here is the detail of the changes which will apply to your entitlements from 20 September, 2023.

This depends, of course, upon your individual circumstances.

Those who have already qualified will automatically receive the increased benefits which will be included in your fortnightly payments after September 20 this year.

Those who have come close to qualifying in the past may now wish to recheck their entitlements. New, higher, income and assets test thresholds will be in place and so you may now be eligible.

If this is your situation, do not apply again before 20 September as the old thresholds will still be in place. But you can certainly get started on your application so you are ready to submit as soon as the new thresholds are in place.  You can, if you wish, make an appointment to speak with one of our advisers to check the maths, and be primed and ready to apply on 20 September. 

We have already updated our Retirement Essentials’ Age Pension Entitlements Calculator with the new rates and thresholds so you can check both your new eligibility status and likely payment amounts now. And for those that feel they should be getting more your could book one of our “Maximising your entitlements consultations”.

And keep an eye on your enews for more about other changes to rent allowances and the Commonwealth Seniors Health Card income thresholds next week

The most recent inflation update shows annual inflation has dropped to 4.9%. Is this 3.2% increase – in addition to the 2.9% increase in March – sufficient to help with higher household expenses? 

Thanks for this timely update with links on how to check your eligibility. Before I contacted your team earlier this year, I had no idea that i was eligible for the Aged Pension so my session with you was not just helpful, but fruitful. I have missed out on over a year of a part-pension, but onwards and upwards from now on!

I’m eligible for the pension in March 2024. Should I make an appointment before or after this date. I don’t want to mis out on my entitlements.

Hi Christine, well done getting clarity on the best next steps to take! If you plan to use our service then it takes approximately 2 weeks for us to do what we do and lodge your claim so if you reach out in February then you should be right.

13 weeks before your birthdate, you have to submit your application either through myGov or written application form in any Centrelink office.

my wife receives1525.50 gross ftn for 50 hrs pt work I receive couples pension of 508.96 ftn Any increase she receives comes off my pension. We can not get ahead of bills. She wants to retire in 4 years time at 60…we will have to live off 1 couples pension How do we do that when rates have just gone up $500 and body corporate $1000 I have worked all my life, am an army veteran and worked for charities? A couples pension is a joke.

Hi I know how you feel i went through it when i was with a partner who was working and lost a huge portion of my Pension. But you should be on a Single pension if she is not on the Pension . You need to think about moving to a cheaper Country as Australia is becoming out of reach for Pensioners , I have done it money goes a lot further here my electricity bill is $ 40 month

Where ?

Croatia Buy a house for $50,000 too

Hi Ken, thank you for sharing your experience with us! Just to clarify though, Centrelink pays the single/couple pension based on whether or not you have a partner, even if your partner is not eligible for the Age Pension the fact that you have one means you receive the couple’s pension rate.

Know the feeling. Single, Ex Army 29 years, been retired for 4 years now. Have my army pension, but because it is labled by the government as an income and not an asset, I get a reduced age pension and get slugged at tax time. Started an account called Tax Time to pay for the tax I have to pay every year. Can not get the Commonwealth Seniors card, because with my army pension being an income and not an asset, earn too much. Government should re-assess ex-servemen and women and give to us what they give to themselves, a descent living standard.

I’m in the same situation on DFRDB pension. Part Age Pension and DFRDB are both taxable. Yes, there is an offset calculation to lower tax/medicare levy that needs to be paid. I completed a Tax file number Declaration, selected NO to question 9 and sent it off to [email protected]. Now DFRDB deduct tax fortnightly. In about 6 months I’ll complete another declaration and answer YES to question 9 and send it off. I will have had more than enough tax deducted for 2023/24 tax return and also receive a refund.

You may be eligible for the Seniors Health Care Card which carries some benefits. Income thresholds have risen significantly in the last 6 months. https://www.servicesaustralia.gov.au/income-test-for-commonwealth-seniors-health-card?context=21966

I don’t think she will be entitled to an age pension for many years. You will receive a singles pension.

Hi Val, thank you for sharing your thoughts! I would just like to clarify the difference between single and couple pensions for you. Centrelink pays you single/couple pension rate based on whether or not you have a partner regardless of if that partner is eligible for the Age Pension or not.

Is there any change to the work bonus situation. I have been guaranteed some extra work, but I will lose most of it because of the pension decrease.

Hi Bruce, thank you for reaching out. We have posted separate articles relating to the Work Bonus and you can find the most relevant one HERE. Please feel free to browse our entire back catalogue of articles in our “News” section for other articles of interest.

i do not think it will help much

just checked our part pension for October – No increase ???

Hi Paul, thanks for seeking our help! Generally speaking Centrelink do not err in the processing of increases however there may have been another change in your financial situation that mitigated the increase, such as an increase in your superannuation balance. The best thing to do is call Centrelink on 132 300 to clarify what figures they are using to calculate your pension and if there have been any recent updates.

My husband receives a Couple’s pension and I work part time . I’m 61 and so not receive any pension. I’ve just read in one of the comments that my husband should be on a single pension. Is that correct?

Hi Mel, thanks for raising your query! Centrelink determines whether to pay you a single or couples’ pension based on whether or not you are in a relationship not by who is eligible/applying. So your current setup with your partner receiving their share of the couples’ pension is correct.

The whole age pension / work situation is absolute rubbish. I have contributed taxes all my life working full time as a teacher & now am working in office admin so I do not have to retire into poverty. I should be allowed to work if I wish & continue to pay taxes without the system punishing me by not allowing me to access the full age pension.

Hello l just turned 60 In August l was Born in 1963 can you please let me know when I can get the Pension what age should l start to apply as lm not very sure Thank you Debbie

Hi Debbie, great work taking in an interest in this now so you can plan ahead! You will be eligible to lodge your claim for Age Pension 13 weeks prior to turning 67, so still a few years to go. In the interim you can get an idea as to how much pension you might receive by using our free online calculator HERE.

What is being done to increase the income threshold for tax from $18200 to allow for the increase in the pension rates, otherwise pensioners will be exposed to increasing tax bills

In the event of a total loss of my primary residence due to fire or flood, does the insurance pay out say $1,100,000 amount have to be declared in the income and assets test or is it exempt whilst construction of the new home is carried out

Hi Chris, hopefully this situation never arises for you but it is good to know just in case! It is best that you declare the amount received to Centrelink and then also clarify how much will be used for the construction so they are aware. The amount will be exempt form asset testing in this scenario so long as you do put the money toward a new home. If you kept the funds to live off and moved in with someone else then yes it will become assessable.

What happened to the proposed $500 energy supplement promised by the Federal Govt.

Hi Mim, we’ve actually covered this in a previous article but the energy supplements are being credited directly into your account with your energy provider so you will receive a reduced bill from them. Unlike previous supplements it is not a cash payment into your bank account.

Why do people who work whilst receiving a pension lose 50 per cent of every dollar they earn. Surely they have paid their dues. Let them work as much as they want to, there are thousands of able people out there who do not want to work. Let pensioners keep their hard earned wages.

Hi team, My partner receives her aged pension on the couples rate. I am not yet eligible for the aged pension. Is that correctly paid or should she be on a singles rate until I begin to receive my pension? Thank you. Cheers.

Hi Freddy, thanks for seeking clarity as this is a common misunderstanding. Centrelink pays the single/couple rate based on whether or not you have a partner, regardless of whether or not the partner is eligible for the Age Pension themselves.

We are going through a separation and once my partner has refinanced I will receive $200000. Do I have to spend all this on a home for it not to be counted as an asset?

Hi David, sorry to hear of your separation. You are correct that the only way to have this money exempt from assessment would be if you were to spend it all on buying/building a new home for you to live in (not an investment property).

Hello, I have superannuation, car and cash to the value of $400K, I work 15 hours a week and received a reduced pension. I am 73, I think I might stop working soon, will my pension stay at the same reduced amount, or will it increase?

Hi Glenna, thank you for reaching out for further assistance! It is hard to know for certain without understanding your full situation but based on what you have said it is likely that Centrelink are using your income to determine the amount of Age Pension you receive and as such if you retire then your pension payments would likely increase. To get more certainty to make a more informed decision you can use our free, online calculator HERE to run the numbers and see.

Friend is a widow own home ,superannuation $600.000 is she entitled to a pension 67 years old still working

Hi Fred, thanks for reaching out! There are many factors that determine someone’s eligibility so I could not say. You would be best to use our free online eligibility calculator HERE to confirm.

Wondering if the reduced couples pension as compared to 2 singles will ever be changed. As each partner in a working couple doesn’t have a reduced tax during their work life! Also pensioners paying a mortgage are again disadvantaged as pensioners who rent ?

hi im married to a filipina and living currently in the philippines , i am a dual brit and aussie citizen , i have 23 years brit pension due in 2 years time when i turn 66 and i also lived in australia for 30 years, paid my taxes and now i have to make a decision to either stay here with a small brit pension or return to oz for 2 years to get the age pension there, my question is…. would i be classified as a single applicant or married, ( been married for 2 years now ) and if married then would we get the pension for a married couple seeing as my wife has never worked in australia ..cheers in advance

Hi Mark, thanks for reaching out! Centrelink determine single/couple status based on whether or not you are in a relationship, not by who is eligible/applying. So in your case you will be considered a couple and have the couple’s thresholds applied. However, when it comes to the amount of pension, the couple’s pension is paid 50/50 between you and her. So if your wife is not eligible then the most you will receive is your 50% share. This means that if you are eligible for the full Age Pension you will receive $825 per fortnight, your 50% share of the couple’s rate.