Age Pension changes from 1 July

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.

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.

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.

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.

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.

^{* 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

To learn more, check out our info page - Age Pension: Your complete guide to eligibility, rates, and benefits.