How much you can own in assets while remaining eligible for the age pension will increase tomorrow, 20 September.
The changes reflect indexation adjustments, which are made twice per year, to account for inflation.
Let's find out what's changing tomorrow.
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How much can you own and still get the age pension?
If you were born on or after 1 January 1957, you can apply for the pension from age 67.
You do not have to be in retirement to qualify for the pension. It's an entitlement based on age, but it's subject to a few rules.
Among the most important are the assets and income tests.
The pension is means-tested because it is social security designed to support senior Australians who need it most.
Tomorrow, the rules for both tests change. In this article, we're focusing on the assets test changes.
Assessable assets under the test include superannuation, ASX shares, bonds, investment properties, cash, and home contents.
Your primary place of residence is excluded from the assets test.
If you rent, the rules allow you to own more in assets while still qualifying for the pension.
Under this next round of indexation changes, the upper thresholds for the assets test are increasing.
Here are the details.
Do you own your home?
Single homeowners whose assets are worth less than $333,000 qualify for the full age pension.
Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.
Couple homeowners whose assets are worth less than $499,000 are eligible for the full age pension.
Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will be eligible for a part-payment.
Do you rent your home?
Single renters whose assets are worth less than $600,000 qualify for the full age pension.
Single renters who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will be eligible for a part-payment.
Couple renters whose assets are worth less than $766,000 qualify for the full age pension.
Couple renters who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will be eligible for a part-payment.
Age pension to increase by $37 per fortnight
Pension payments are also increasing from tomorrow.
Singles will get an extra $36.80 per fortnight, raising the total age pension payment to $1,237.70 per fortnight.
Couples will get an extra $27.80 per partner, per fortnight, increasing the total payment to $933 per partner, per fortnight.
If you're curious about how much income you can earn while still getting the age pension under the new rules, read our article here.
