Centrelink assesses the amount of Age Pension you are entitled to receive by two basic means tests, the Income Test and the Assets Test.
Age Pension age is:
65 years and 6 months, if you were born between 1 July 1952 and 31 December 1953
66 years, if you were born between 1 January 1954 and 30 June 1955
66 years and 6 months, if you were born between 1 July 1955 and 31 December 1956
67 years, if you were born on or after 1 January 1957
Any of the following factors may impact on the amount you may be entitled to:
Change in your circumstances, including sale of your home, purchase of another home, change to your investments;
Change in value of your assets; and
Change in income received (this may include income from pre 2015 income streams).
Centrelink assumes that some of your financial assets earn a certain amount of income, regardless of the actual income they earn. Centrelink calls this ‘deeming’. Deeming applies to assets defined as ‘financial investments’ such as superannuation capital, bank accounts, managed investments, shares and term deposits. These rates are assessed regularly and changed in accordance with current interest rates.
You are obliged to update Centrelink with any significant changes to the nature or value of your assets or the income you are receiving to ensure you receive the correct entitlement. Pension Rates are indexed twice a year on 20th March and 20th September. On 20 March 2024 Centrelink have updated their pension rates to the following maximums (excluding Rent Assistance).
Per fortnight | Single | Couple each | Couple combined |
Maximum basic rate | $1,020.60 | $769.30 | $1,538.60 |
Maximum Pension Supplement | $81.60 | $61.50 | $123.00 |
Energy Supplement | $14.10 | $10.60 | $21.20 |
Total | $1,116.30 | $841.40 | $1,682.80 |
Due to the above mentioned increases, the income and asset test limits have also increased and the potential for eligibility is outlined below.
Pension income test limits (per fortnight)
Family situation | Full pension | Part pension* |
Single | $204 | $2,436.60 |
Couple living together (combined) | $360 | $3,725.60 |
Illness-separated couple (combined) | $360 | $4,825.20 |
*Pension reduces by 50 cents for every dollar over this threshold for singles, 25 cents for each member of a couple.
Pension asset test limits
Family situation | Full pension* | Part pension cut-out limit |
Single homeowner | $301,750 | $674,000 |
Single non-homeowner | $543,750 | $916,000 |
Couple (combined) homeowner | $451,500 | $1,012,500 |
Couple (combined) non-homeowner | $693,500 | $1,254,500 |
*Pension reduces by $3 per fortnight for every $1,000 over this threshold.
If you wish to review you current circumstances or revisit if eligible for Age Pension feel free to contact the financial planning team or your Financial planner for a review.
Source https://www.servicesaustralia.gov.au/age-pension
