The age pension increases today, as do the upper limits of the income and assets tests for a part pension in retirement.
The increases are part of the latest round of indexation changes, which occur twice per year to keep up with inflation.
Let's check out the new rates.
Age pension payments increase today
Single age pensioners on the base rate payment will receive an extra $4.20 per fortnight from today.
This lifts the single age pension base rate to $1,051.30 per fortnight.
Single age pensioners who are also eligible for the supplement payment and energy supplement will receive $1,149 per fortnight.
Couples on the base rate payment will receive an extra $3.20 per person per fortnight.
This raises the couples' age pension base rate to $792.50 per partner per fortnight.
Couples that are eligible for the supplements will receive $866.10 per partner per fortnight.
Are you eligible to receive an age pension?
Australians become eligible for the age pension when they reach 'retirement age'.
This is defined as 67 years of age for people born on or after 1 January 1957.
There are other eligibility criteria, including residency rules, an asset test, and an income test.
These tests determine whether you can receive a pension, and if so, how much you will receive.
The less you earn and own, the more likely you are to receive the full payment.
If you earn or own too much for the full payment, a sliding scale determines whether you can get a part pension.
As part of the indexation changes, the value limits on income and assets for a part payment have also been raised.
Asset test: How much can a pensioner own in retirement?
The value of your home is not included in the assets test.
If you do not own your home, you are allowed to own a higher value of other assets and still get a full or part pension.
The assets test incorporates ASX shares, international shares, bonds, investment properties, superannuation, and cash savings.
According to Super Guide, the asset value limits to receive a full pension have not changed today. They will stay the same until 30 June.
However, the value limits to receive a part payment have gone up a little.
Currently, single homeowners can own $314,000 in assets and still qualify for the full pension.
Single non-homeowners can own $566,000 in assets.
Couple homeowners can own $470,000 in assets outside their home and still qualify for the full pension.
Couple non-homeowners can own $722,000 in assets.
Today, the following indexation changes have come into effect for part payments.
Previously, single homeowners whose assets were worth more than $314,000 but less than $695,500 were eligible for a part pension. Today, that upper limit has been lifted to $697,000.
Previously, single non-homeowners whose assets were worth more than $566,000 but less than $947,500 were also eligible for a part pension. That upper limit is now $949,000.
Previously, couple homeowners whose assets were worth more than $470,000 but less than $1,045,500 were eligible for a part pension. That upper limit has been bumped up to $1,047,500 today.
Previously, couple non-homeowners whose assets were worth more than $722,000 but less than $1,297,500 were also eligible for a part pension. That upper limit is now $1,299,500.
Income test: How much can a pensioner earn in retirement?
The income limits to qualify for a full age pension are not changing today. They'll remain as they are until 30 June.
However, the income limits to receive a part pension have gone up today.
Currently, single pensioners are allowed to earn $212 per fortnight, and couples can earn $372 combined per fortnight, and still qualify for the full pension.
For a part pension, the new cut-off income point for single people in retirement has increased today by $9.20 per fortnight to $2,510 per fortnight.
This means single pensioners earning more than $212 but less than $2,510 per fortnight now qualify for a part pension.
For couples, the new cut-off income point has been lifted by $14 per fortnight to $3,836.40 combined per fortnight.
This means couples earning more than $372 but less than $3,836.40 per fortnight now qualify for a part age pension.
