Centrelink Age Pension Increase – Almost 5 million Australians who collect the Age Pension or other Centrelink benefits will enjoy a rise to their social security entitlements from 20 March.
The Age Pension, Disability Support Pension and Carer Payment rates will increase by $20.10 to $987.60 a fortnight for a single person and by $30.20 to $1,488.80 a fortnight for a pair.
The federal government is also strengthening the asset threshold to enable more individuals access to a part pension. That’s the amount of assets such as savings, investments and property you’re permitted to hold and still be eligible to earn some of the age pension. It normally doesn’t cover your own house and up to the first two hectares of land it’s on.
For example, the asset maximum for a single homeowner will increase by $6,750 to $599,750 and for a pair by $10,000 to $901,500.
The Age Pension is normally evaluated twice a year in an attempt to keep payments in line with any increases in the cost of living. Full information of the indexation modifications are available from the Department of Social Services.
The Minister for Families and Social Services, Anne Ruston, said in a statement the indexation of the payments to individuals was necessary to assist preserve their buying power within the economy.
There are differing rates of Age Pension payments for single and paired persons. If you have a partner we require income and asset details for both of you.
Read about how your relationship status might effect your payment rate.
If you or your partner obtain income from or have assets outside Australia, it may alter your rate.
There are also differing rates for certain persons who were collecting a pension in 2009.
The Department of Social Services frequently examines these rates to reflect changes in the Consumer Price Index. These rates are the highest possible sums that can be charged every two weeks. You may have the option in some scenarios to receive your payment on a weekly basis.
You could possibly qualify for a payment in advance, depending on the particulars of your case. The maximum full Age Pension for a single individual will increase by $20.10 per fortnight on March 20, 2022, while the maximum full Age Pension for a pair will increase by $15.10 per person per fortnight.
The following table presents, for the period beginning 20 March 2022 and ending 19 September 2022, the rates applicable to a full Age Pension for residents of Australia:
The cost of living for a single person is around $25,678 per year or $987.60 each fortnight.
Cost of living for a couple, per person: $744.40 every two weeks (about $19,354 each year)
$1,488.80 every two weeks or nearly $38,709 per year for a couple when both incomes are pooled.
Couples who are no longer together as a result of an illness each receive the Single rate (see above), which brings their total monthly payment to $1,975.20 (roughly $51,355 annually).
To be eligible for the Age Pension in Australia, you need to have achieved the Age Pension age, which varies depending on your year of birth but is presently 66 years and 6 months, satisfied the residency requirements, and done well on both the income test and the assets test.
You can be eligible for a full or part Age Pension, depending on the amount of money you make and the kinds of assets you hold when you reach retirement age. To be eligible for a full Age Pension as a single person, the value of your assets must be less than $280,000 if you own your own house, or $504,500 if you don’t own your own home. If you don’t own your own home, you will not qualify for the full pension.
If you own your own house, you may still be eligible for a portion of the age pension as long as the value of your assets does not exceed $609,250; however, if you do not own your own home, the limit for the value of your assets is $833,750.
If both members of the marriage own their own house, the total value of their assets must be less than $419,000; if neither member of the couple owns their own home, the combined value of their assets must be less than $643,500.
You may still be eligible for a portion of the Age Pension if the value of your assets is less than $915,500 if you own your own house or $1,140,000 if you do not own your own home. If you do not own your own home, the threshold increases to $1,140,000.
When it comes to the amount of the age pension, there is no standard rate that applies to everyone. If you are judged to be qualified for a payment, the amount of that payment you will get will be based on the amount of money and assets you bring in.
There are a variety of criteria that must be met in order to qualify for the age pension. You are eligible for the programme if you satisfy the qualifying conditions for age, the regulations for Australian residence, as well as the income and assets test — we’ll talk more about these aspects in the next section.
On March 29, 2022, the government of Australia made the announcement that around 6 million people who are entitled to receive payments and who have concession cards will receive a one-time Cost of Living Payment of $250 that is exempt from taxation. Pensioners will make up more than half of the total beneficiaries.
Beginning on April 28th, 2022, payments will begin to be processed through Services Australia in stages. It is not necessary for eligible beneficiaries, such as those receiving an Age Pension, to get in touch with Services Australia because the payments will be processed automatically.
Visit the Services Australia website for further details and information. Because it enables individuals to keep a larger portion of their pension when they also have income from working, the Work Bonus serves as an incentive for retirees who have already reached the age at which they are eligible for the Age Pension.
The first $300 of a worker’s biweekly income from employment is not subject to assessment and is not considered for determining eligibility for a pension. Any portion of the Work Bonus exemption amount of $300 per fortnight that is not used is deposited into a bank account designated for the Work Bonus.
The maximum amount of cash that may be accumulated in the Work Bonus income bank is $7,800. The amount that can be put into an income bank can be used to offset future earnings from work that would otherwise be subject to the pension income test.
In addition to the free area that’s allotted for the pension income test, the Work Bonus might be claimed. The pension income test exempt area will increase to $180 a fortnight for single retirees on July 1, 2021, and it will increase to $320 a fortnight for couples combined.
This change will take effect. This indicates, for instance, that a senior who is beyond the age of eligibility for the age pension and who does not receive any other kind of private income can earn up to $480 per fortnight from employment and still be eligible for the highest amount of pension.
A person does not need to be retired in order to qualify for the Age Pension; all they need to do is complete the eligibility requirements and have an income and asset total that falls below the thresholds set by the government. Visit the website of Services Australia for further details and information.
Pensioners who continue to work while receiving the Age Pension are eligible for the Work Bonus, which enables them to retain a greater portion of their pension notwithstanding the additional income they get from employment.
Age Pension recipients cannot be placed on a cashless welfare card against their will, with the exception of the Cashless Debit Card in the Cape York region. This is in accordance with the Income Management arrangements that have been in place with the Family Responsibilities Commission for a significant amount of time.