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.
Single homeowner
$301,750
$656,500
Previous threshold
$280,000
$634,750
Single non-homeowner
$543,750
$898,500
Previous threshold
$504,500
$859,250
Couple (combined) homeowner
$451,500
$986,500
Previous threshold
$419,000
$954,000
Couple (combined) non-homeowner
$693,500
$1,228,500
Previous threshold
$643,500
$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.
Single
$204 per fortnight
$2,332 per fortnight
Previous threshold
$190 per fortnight
$2,318 per fortnight
Couple (combined)
$360 per fortnight
$3,568 per fortnight
Previous threshold
$336 per fortnight
$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.
Single
Up to $60,400
Above $60,400
Previous threshold
Up to $56,400
Above $56,400
Couple
Up to $100,200
Above $100,200
Previous threshold
Up to $93,600
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.
From 1 January 1957
67
1 July 1955 – 31 December 1956
66.5
1 January 1954 – 30 June 1955
66
1 July 1952 – 31 December 1953
65.5
Before 1 July 1952
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.
$1,064
$27,664
$802
$20,852
$1,604
$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
To learn more, check out our info page - Age Pension: Your complete guide to eligibility, rates, and benefits.
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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.