Latest Age Pension changes (from 20 March 2023) Single: $1,064.00 per fortnight (approximately $27,664 per year) Couple (each): $802.00 per fortnight (approximately $20,852 per year)
However, it implies the 20 September 2023 Age Pension increase may be smaller than anticipated. For a single pensioner, a 2.2 per cent increase denotes a rise of $23 per fortnight for a total of $1087. For couples, the increase would be $35, totalling $1639 per fortnight.
Changes in Home Value and Its Effect on Pension Payments
The Asset Value Limit for single homeowners receiving full age pension is $280,000.
Yes, 'millionaires' can qualify for the age pension.
As a homeowner your assets allowance is significantly reduced. For example, as a single homeowner you get full Age Pension if your assets are below $270,500, while a non-homeowner can have up to $487,000 and still receive the full Age Pension. For a couple homeowners the limit is $405,000 and non-homeowners $621,500.
Full Age Pension income threshold increases by: Singles threshold $204 per fortnight, increase is $14 per fortnight, $364 per annum. Couples threshold $360 per fortnight, increase is $24 per fortnight, $624 per annum.
Around 1.6 million NSW households and 320,000 small businesses are eligible for a new National Energy Bill Relief payment in financial year 2023-24. Eligible low-income households, pensioners, self-funded retirees, families and carers will receive a one-off $500 bill relief payment towards their electricity bills.
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
Receiving an inheritance should be considered a blessing for your financial position. However, a lump sum inheritance may or may not affect your Age Pension positively. Different lump sums may be treated in different ways.
Can you get the Age Pension if you have super? Yes, provided you have reached the Age Pension age, you may be eligible for the Age Pension even if you have super savings.
If you withdraw money from your super fund, you must tell Centrelink within 14 days.
If you're 60 and over, the income will generally be tax-free. If you're between your preservation age and 59, the components of your super will dictate how it will be taxed.
Tax Returns for Aged Pensioners
If your only source of income is the aged pension, it is compulsory for you to lodge a tax return each year. This applies is Centrelink is withholding tax from the aged pension. This information will be included in your PAYG summary, indicating the amount of tax withheld.
If the inheritance you receive when added to your already assessable assets will not exceed your personal asset limit, then your pension won't be impacted. However, if it does then it likely will be.
The Government has provided two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. These payments will support households to manage the economic impact of the Coronavirus.
The amount of money you receive from the age pension you receive depends on your age, wealth and income. It can be affected by the amount of money you have in your bank account as well as in your super fund.
If you're a pensioner currently receiving support through Centrelink, you may be eligible for extra help with bills and medicine costs through the Pension Supplement. This supplement is a combined payment of Pharmaceutical Allowance, Utilities Allowance, GST Supplement and Telephone Allowance.
Inflation Increases For Payments From 1 January 2023
Youth Allowance, Austudy, Abstudy and DSP and some other miscellaneous payments will increase from 1 January 2023. The full schedule of indexation adjustments is here.
Currently, a pensioner can only earn up to $240 per week before they lose the pension by 50 cents in the dollar. That means they can only really work one day a week before getting penalised (depending on their remuneration). If they earn more than about $33,000 per year—which includes their pension—they also get taxed.
The first full payment at the new rates of pension will be payday 6 April 2023. The maximum rate of single service pension will rise by $37.50 to $1,064.00 per fortnight and the maximum rate for couples will increase by $28.20 to $802.00 per fortnight (each).
1 July 2023 the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $301,750 – for homeowner couples the number is $451,500. The numbers for non-homeowners are $543,750 and $693,500 respectively.
Tell Centrelink
This is really important. You must tell Centrelink with 14 days of receiving the lump sum. If you don't, you could be overpaid, and you will need to repay the money to Centrelink.
How Centrelink knows your assets without you telling them. Centrelink has multiple data-sharing agreements with government organisations like the ATO, Medicare, PayG and more. This helps them to maintain a view of your assets, and in certain circumstances they may apply additional scrutiny to individuals.