The value of assets you can own, and the amount you can earn, while still qualifying for the age pension will rise next Sunday.
The changes reflect indexation adjustments, which are made twice per year, to keep up with inflation.
Pension payments will also go up.
Single pensioners will receive an extra $36.80 per fortnight under the inflation adjustments from 20 September.
That will take the full pension payment up to $1,237.70 per fortnight.
Couples will get an extra $27.80 per partner, per fortnight.
That will raise the full pension payment to $933 per partner, per fortnight.
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Are you eligible for the age pension?
Australians born on or after 1 January 1957 are eligible for the pension at age 67, whether retired or not.
The pension is subject to an assets test and income test.
If you own or earn too much, you may only qualify for a part-pension, or no pension at all.
Let's look at the numbers.
How much can you own under the assets test?
Australians will be able to own more from 20 September and still qualify for at least a part-pension under changes to the assets test.
A primary place of residence is excluded from the assets test.
Everything else, including superannuation, ASX shares, bonds, rental properties, and cash, is assessable.
If you rent your home, you are allowed to own more in assets while still qualifying for the age pension.
Under this next round of indexation changes, only the upper thresholds for the assets test are changing.
Single homeowners whose assets are worth less than $333,000 qualify for a full pension.
Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.
Non-homeowner singles whose assets are worth less than $600,000 qualify for the full payment.
Non-homeowner singles who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will qualify for a part-pension.
Couple homeowners whose assets are worth less than $499,000 qualify for a full pension.
Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will qualify for a part-payment.
Non-homeowner couples whose assets are worth less than $766,000 qualify for the full payment.
Non-homeowner couples who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will qualify for a part-pension.
How much can you earn while still getting the pension?
Australians will also be able to earn a bit more from 20 September while still qualifying for at least a part-pension.
Under this next round of indexation changes, only the upper thresholds for the income test are changing.
Singles who earn less than $226 per fortnight qualify for the full payment.
Singles who earn between $227 and $2,701.40 (up from $2,627.80) per fortnight will qualify for a part-payment.
Couples who earn less than $396 per fortnight qualify for the full payment.
Couples who earn between $397 and $4,128 (up from $4,016.80) per fortnight will qualify for a part-pension.
As usual, a pensioner's annual investment income (with the exception of rental income) is determined by deeming rates.
The deeming rates will go up on 20 September.
The lower deeming rate will be 1.75% for the first $66,800 worth of assets for singles and the first $110,600 for couples combined.
Everything above these amounts will be deemed to have earned the new upper deeming rate of 3.75%.
