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Big news for senior Australians receiving the Age Pension! Starting July 2024, there have been significant changes to the Centrelink Age Pension that you need to know about. These changes could mean higher payments or new eligibility for many seniors. Let’s dive into the details.
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With the start of the new fiscal year in Australia, several changes are set to impact senior citizens.
Thousands of older Australians rely on the Age Pension for financial support. While the basic pension rates remain the same, adjustments to income and asset thresholds mean some pensioners could receive more money or qualify for pensions they didn’t before.
Despite the rise in superannuation participation, the Age Pension is still the main source of income for millions of seniors. According to Rice Warner, nearly 39 percent of Australians rely on the Age Pension, with 24% receiving a partial pension. These changes are crucial for many senior Australians.
To be eligible for the Age Pension, you must be 67 years or older and meet the asset and income test requirements. Starting from July, these thresholds have been adjusted for inflation. This means you can now have more assets and income without affecting your pension payments. Some people who were previously not eligible might now qualify, and those on a partial pension might get the full amount.
From July, there are important changes in the Superannuation Pension. The employer’s contribution to the Superannuation Scheme has increased from 11% to 11.5%, boosting retirement funds for workers. The contribution limits have also changed, with before-tax contributions raised to $30,000 and after-tax contributions to $120,000.
Here are the new asset limits for receiving a full pension:
| Circumstances | Homeowner | Non-homeowner |
|---|---|---|
| Single | $314,000 | $566,000 |
| A couple, combined | $470,000 | $722,000 |
For partial pensions, the new asset limits are:
| Circumstances | Homeowner | Non-homeowner |
|---|---|---|
| Single | $686,250 | $938,250 |
| A couple, combined | $1,031,000 | $1,283,000 |
Income thresholds have also increased:
If you earn more than these amounts, your pension will be reduced by 50 cents for every dollar earned over the limit. The maximum income you can earn before your pension is completely cut off has also increased:
Starting July 1, 2024, these key changes to the Age Pension in Australia will affect thousands of senior citizens.
Although the basic pension rate remains unchanged, adjustments to the assets and income thresholds mean that some retirees will receive higher payouts. It’s essential for pensioners to stay informed about these changes to ensure they receive the support they deserve.
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Elena is a seasoned tax consultant with a decade of expertise in income tax management. Graduating with top honors in Finance, she embarked on a career journey focused on simplifying tax complexities. Elena's insightful articles on thecsc.org provide practical guidance to taxpayers.
