The Centrelink age pension changes, effective from July 1, 2024, are now fully implemented, bringing significant updates aimed at improving the financial well-being of older Australians. As reported by RU News, These changes not only enhance payment thresholds but also expand eligibility criteria, offering greater support to pensioners. Let’s break down the key updates and what they mean for you.
Expanded Eligibility and Payment Increases
While the base pension rates remain unchanged, the adjustments to income and asset test thresholds allow many pensioners to receive higher payments. These changes also mean that more people can now qualify for the age pension, with some transitioning from part pensions to full pensions.
| Aspect | Details |
|---|---|
| Effective Date | December 2024 |
| Increase Amount | – Singles: Up to $1,144.40 per fortnight (an increase of $30)- Couples (combined): Up to $1,725.20 per fortnight (an increase of $42.40) |
| Eligibility | – Australian residents aged 66 and above- Meet income and asset test requirements |
| Purpose | To assist pensioners in managing increased living expenses due to inflation |
| Official Resource | Services Australia – Age Pension |
Updated Qualification Criteria for the Age Pension
To qualify for the Centrelink age pension, individuals must meet the following criteria:
- Be at least 67 years old.
- Pass income and asset tests.
From July 1, 2024, the income and asset thresholds have been increased to better align with inflation, enabling pensioners to retain more income and assets without affecting their payments.
Income Test Adjustments
The new income test thresholds provide increased flexibility:
- Single Pensioners: The income-free area has risen from $204 to $212 per fortnight. For earnings above this limit, the pension reduces by 50 cents for every additional dollar.
- New maximum payment: $1,144.40 per fortnight (an increase of $30).
- Annual increase:Â $780.
- Couple Pensioners: The combined income-free area has increased from $360 to $372 per fortnight, with the same reduction rate applied for income exceeding this threshold.
- New maximum payment: $1,725.20 per fortnight (an increase of $42.40).
- Annual increase:Â $1,102.40.
Asset Test Changes
The new asset thresholds allow pensioners to hold greater asset values without impacting their payments. Here are the updated limits:
For Homeowners:
- Single Pensioners: Full pension eligibility is now available up to $314,000 in assets (up from $301,750).
- Couple Pensioners: Combined asset limit for the full pension is now $470,000 (up from $451,500).
For Non-Homeowners:
- Single Pensioners: The asset limit for full pension eligibility is now $566,000 (up from $543,750).
- Couple Pensioners: Combined asset limit for the full pension is now $722,000 (up from $693,500).
For part pensions, the updated thresholds are:
- Single Homeowners: Asset limit increased to $686,250 (up from $674,000).
- Single Non-Homeowners: Asset limit increased to $938,250 (up from $916,000).
- Couple Homeowners: Combined asset limit raised to $1,031,000 (up from $1,012,500).
- Couple Non-Homeowners: Combined asset limit increased to $1,283,000 (up from $1,254,500).
Deeming Rates and Threshold Adjustments
Deeming rates remain unchanged until June 30, 2025, but thresholds for deeming have been indexed. Here are the updates:
- Single Pensioners: The first $62,600 of financial assets is deemed to earn 0.25% (up from $60,400).
- Couple Pensioners: The first $103,800 of combined financial assets is deemed to earn 0.25% (up from $100,200).
Amounts exceeding these thresholds continue to be deemed at a rate of 2.25%.
Additional Changes Effective July 1, 2024
Other updates include:
- Retirement Village and Granny Flat Residents: The extra allowable amount for non-homeowners has increased to $252,000 (up from $242,000).
- Special Disability Trusts: The concessional asset value limit is now $813,250 (up from $781,250).
- Exempt Funeral Investments: The limit has increased to $15,500 (up from $15,000).
Reviewing Your Pension Eligibility
Pensioners are advised to review their financial situations to determine how these changes may impact their payments. For personalized advice, contacting Centrelink or consulting a financial advisor is recommended.
Summary
The 2024 updates to the Centrelink age pension system aim to provide greater financial stability for older Australians. With increased thresholds for income and assets, more individuals can benefit from higher payments and expanded eligibility. These changes reflect the government’s commitment to supporting the aging population.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Premlata is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, she empowers readers with actionable insights and clarity. When she’s not crafting impactful articles, you can find her sharing her expertise on LinkedIn or connecting via email at biswaspremlata@gmail.com.
