Changes to the income and assets test thresholds could mean more money in your back pocket. Here’s what you should know.

 

On 1 July 2023, income and assets test thresholds were adjusted, deeming rate thresholds changed, and the eligibility age (depending on when you were born) increased.

 

Below we explain what this means for you and where potential benefits may exist.

 

Increased income and assets test thresholds

Your eligibility for the government’s Age Pension depends on your age, residency, and whether you have income and assets below certain limits (also known as thresholds). 

 

Here are the new income and assets test thresholds that are now in effect, compared to what they were prior to 1 July 2023. 

 

Keep in mind these are reviewed by the government in March, July and September every year, so may change again in future.

Assets test thresholds comparison

Assets might include your investments, household contents, or other possessions. Assets that aren’t included in the assets test include your family home.

Assets test thresholds from 1 July 2023
Status
Full Age Pension cut off
Part Age Pension cut off
Status

Single homeowner

Full Age Pension cut off

$301,750

Part Age Pension cut off

$656,500

Status

Previous threshold

Full Age Pension cut off

$280,000

Part Age Pension cut off

$634,750

Status

Single  non-homeowner

Full Age Pension cut off

$543,750

Part Age Pension cut off

$898,500

Status

Previous threshold 

Full Age Pension cut off

$504,500

Part Age Pension cut off

$859,250

Status

Couple (combined) homeowner

Full Age Pension cut off

$451,500

Part Age Pension cut off

$986,500

Status

Previous threshold

Full Age Pension cut off

$419,000

Part Age Pension cut off

$954,000

Status

Couple (combined) non-homeowner

Full Age Pension cut off

$693,500

Part Age Pension cut off

$1,228,500    

Status

Previous threshold

Full Age Pension cut off

$643,500

Part Age Pension cut off

$1,178,500

Income test thresholds comparison

Income includes that which you might receive from your employer, investments, super (if over Age Pension age) or retirement pensions. It doesn’t include things like emergency relief payments.

Income test thresholds from 1 July 2023
Status
Full Age Pension cut off
Part Age Pension cut off
Status

Single

Full Age Pension cut off

$204 per fortnight

Part Age Pension cut off

$2,332 per fortnight

Status

Previous threshold

Full Age Pension cut off

$190 per fortnight

Part Age Pension cut off

$2,318 per fortnight

Status

Couple (combined)

Full Age Pension cut off

$360 per fortnight

Part Age Pension cut off

$3,568 per fortnight

Status

Previous threshold

Full Age Pension cut off

$336 per fortnight

Part Age Pension cut off

$3,544 per fortnight

Tip: The Work Bonus may help you receive more income from working, without reducing your pension. The government has also increased the maximum Work Bonus balance to $11,800 from 1 December 2022 to 31 December 2023.

Higher deeming thresholds

Deeming thresholds are reviewed every year and these also changed on 1 July 2023.

 

Deeming is a shortcut method applied to assess the income from your investments like shares, super and interest from bank accounts. 

 

Deeming rates assume your financial investments are earning a certain amount – no matter how much they’re actually earning. One benefit is you could be earning more on your investments than is applied by the deeming rates.

Deeming rates from 1 July 2023
Status
0.25%
2.25%
Status

Single

0.25%

Up to $60,400

2.25%

Above $60,400

Status

Previous threshold

0.25%

Up to $56,400

2.25%

Above $56,400

Status

Couple

0.25%

Up to $100,200

2.25%

Above $100,200

Status

Previous threshold

0.25%

Up to $93,600

2.25%

Above $93,600

Changes in eligibility age

From 1 July 2023, the Age Pension eligibility age is 67 if you were born on or after 1 January 1957. People born before this qualified sooner.

Date of birth
Age Pension eligibility age
Date of birth

From 1 January 1957

Age Pension eligibility age

67

Date of birth

1 July 1955 – 31 December 1956

Age Pension eligibility age

66.5

Date of birth

1 January 1954 – 30 June 1955

Age Pension eligibility age

66

Date of birth

1 July 1952 – 31 December 1953

Age Pension eligibility age

65.5

Date of birth

Before 1 July 1952

Age Pension eligibility age

65

Tip: The age you can access your super and the age you’ll be eligible for the Age Pension won’t necessarily be the same. Generally, you can access your super savings first.

What does the Age Pension pay anyway?

If you’re wondering what the Age Pension pays, below are the current maximum payment rates being paid fortnightly and annually.

 

It’s also important to note Age Pension payments are generally reviewed each year in March and September by the government, so may change in future.

Age pension payments
Status
Fortnightly*
Annually*
Status
Single
Fortnightly*
Single

$1,064

Annually*
Single

$27,664

Status
Couple (each)
Fortnightly*
Couple (each)

$802

Annually*
Couple (each)

$20,852

Status
Couple (combined)
Fortnightly*
Couple (combined)

$1,604

Annually*
Couple (combined)

$41,704

* Includes basic rate plus maximum pension and energy supplements.

 

Tip: Age Pension payments can be received on top of any income you may receive from your super savings, depending on how much super you have.

Further information

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Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments.

 

Information on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at  https://www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.