Centrelink Pension 2024 As of July 1, 2024, significant updates to the Centrelink age pension system are now in full effect, bringing enhanced financial support to many older Australians. These changes are designed to improve the quality of life for pensioners by offering greater financial flexibility, although the base pension rates remain unchanged. With updated income and asset test thresholds, many pensioners are now receiving higher payments, while others have gained eligibility for the age pension.
Updated Qualification for the Age Pension
To qualify for the age pension, individuals must be at least 67 years old and pass both the income and asset tests. As of July 1, 2024, the thresholds for these tests have been adjusted to better reflect inflation, allowing individuals to retain more income and assets before their pension payments are reduced.
Income Test Adjustments
The income test thresholds have been revised as follows:
- Single Pensioners: The income-free area, which is the amount a single pensioner can earn without impacting their pension, has increased from $204 to $212 per fortnight. Any earnings above this amount result in a 50-cent reduction for every extra dollar earned.
- Couple Pensioners: The combined income-free area for couples has increased from $360 to $372 per fortnight, with the same 50-cent reduction for every dollar earned over this limit.
Additionally, the maximum income limits before pension payments are completely phased out have also been adjusted:
- Single Pensioners: The new limit is $2,444.60 per fortnight, up from $2,436.60.
- Couple Pensioners: The combined limit for couples has risen to $3,737.60 per fortnight, from $3,725.60.
Asset Test Changes
The asset test thresholds have also been updated, enabling pensioners to keep more of their assets without affecting their pension payments.
For Homeowners:
- Single Pensioners: The asset limit for receiving the full pension has increased to $314,000, up from $301,750.
- Couple Pensioners: The combined asset limit for couples has risen to $470,000, from $451,500.
For Non-Homeowners:
- Single Pensioners: The asset limit for the full pension is now $566,000, compared to the previous $543,750.
- Couple Pensioners: The combined asset limit for non-homeowners is now $722,000, up from $693,500.
For individuals receiving part pensions, the new asset limits are as follows:
- Single Homeowners: Asset limit for part pensions is now $686,250, up from $674,000.
- Single Non-Homeowners: Asset limit for part pensions has increased to $938,250, up from $916,000.
- Couple Homeowners: Combined asset limit for part pensions is now $1,031,000, up from $1,012,500.
- Couple Non-Homeowners: The asset limit for part pensions has risen to $1,283,000, up from $1,254,500.
Deeming Rates and Thresholds
While the government has frozen deeming rates until June 30, 2025, the thresholds have been indexed, meaning higher asset amounts will now be deemed to earn income at a lower rate.
- Single Pensioners: The first $62,600 of financial assets is now 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.
For any amounts above these thresholds, the deeming rate remains at 2.25%.
Additional Adjustments
Several other pension-related adjustments have been made, effective from July 1, 2024:
- Retirement Village and Granny Flat Residents: The allowable amount for non-homeowners living in retirement villages or granny flats has increased to $252,000, from $242,000.
- Special Disability Trusts: The concessional asset value limit for these trusts has increased to $813,250, up from $781,250.
- Exempt Funeral Investment: The threshold for exempt funeral investments has been raised to $15,500, from $15,000.
Reviewing Your Pension Eligibility
It is essential for pensioners to review their financial situation in light of these changes, as the updated thresholds may affect their payments. For personalized advice and assistance, it is recommended that individuals contact Centrelink or consult a financial advisor.
These adjustments to the Centrelink age pension are intended to provide greater financial stability and improve the quality of life for older Australians, allowing many to qualify for higher pension payments or transition from part pensions to full pensions.
