Starting July 2024, there are big updates to the Centrelink Age Pension in Australia. These changes could mean higher payments or new eligibility for many senior citizens. Here’s a simple breakdown of what you need to know.
Key Changes in Eligibility
To qualify for the Age Pension, you need to be 67 years or older and meet specific asset and income requirements. Starting from July, these requirements are changing. This means you can have more assets
and income without affecting your pension payments. Some people who didn’t qualify before might now be eligible, and those on a partial pension might receive the full amount.
Changes in Superannuation Contributions
From July, the amount that employers contribute to your Superannuation has increased. It’s now 11.5%, up from 11%. Contribution limits have also changed. You can now make before-tax contributions up to $30,000 and after-tax contributions up to $120,000.
New Asset Limits for Full Pensions
Here are the updated asset limits to receive a full pension:
- Single Homeowner: $314,000
- Single Non-homeowner: $566,000
- Couple (combined, homeowner): $470,000
- Couple (combined, non-homeowner): $722,000
For a partial pension, the new asset limits are:
- Single Homeowner: $686,250
- Single Non-homeowner: $938,250
- Couple (combined, homeowner): $1,031,000
- Couple (combined, non-homeowner): $1,283,000
Updated Income Thresholds
Income limits have also increased:
- Single Pensioners: Can now earn up to $212 per fortnight, up from $202.
- Couples: Can earn up to $372 per fortnight, up from $360.
If you earn more than these amounts, your pension will be reduced by 50 cents for every dollar over the limit. The maximum income before your pension is fully cut off has also increased:
- Singles: Up to $2,444.60 per fortnight.
- Couples: Up to $3,737.60 per fortnight.
Why These Changes Matter
Although the basic pension rate stays the same, these adjustments in asset and income limits mean that some retirees will get higher payments. It’s important for seniors to stay informed about these changes to make sure they receive the support they’re entitled to.
1. What are the new asset limits for a full Age Pension?
For singles, it’s $314,000 if you own a home or $566,000 if you don’t. For couples, it’s $470,000 combined if you own a home or $722,000 if you don’t.
2. How much can I earn before my pension is reduced?
Single pensioners can earn up to $212 per fortnight, and couples can earn up to $372 per fortnight before their pension starts to reduce.
3. What is the new employer contribution to Superannuation?
The employer contribution has increased to 11.5% from 11%.
4. How have the contribution limits changed for Superannuation?
Before-tax contributions can now be up to $30,000, and after-tax contributions can be up to $120,000.
5. When do these changes take effect?
The new changes to the Age Pension and Superannuation contributions start on July 1, 2024.