Age Pension Update you need to know!

Age Pension Rates from 20 March 2024

The maximum age pension rates from 20 March 2024 will be

• Single age pension rate: $1,116.30 per fortnight (an increase of $19.60 per fortnight)

• Couples age pension are: $1,682.80 (combined) per fortnight (an increase of $29.40 per fortnight for the combined rate)

These rates will apply from 20 March 2024 until 19 September 2024. Age Pension rates are indexed each 20 March and 20 September.

The pension amount actually paid will be determined after separately applying the income means test and the asset means tests.

Income Free Area

The income free area (the amount of income which an age pension recipient can receive per fortnight before the income reduces the age pension entitlement) will be increased with effect from 1 July 2024.

The current income fee areas remain (until 30 June 2024) as

• Single age pension: $204 per fortnight

• Pensioner couple: $360 per fortnight

The new income free area amounts apply for 2024/25 financial year have yet to be announced.

Deeming Rate for Financial Investments (including superannuation balances)

The deeming rates and threshold (the dollar amount at which the lower deeming rate of 0.25% ceases to apply and the higher deeming rate of 2.25% applies) for 2023/24 financial year remain as:

• Single age pension: $60,400 (no change)

• Pensioner couple: $100,200 (no change)

The deeming rates remain as 0.25% or 2.25%. These rates will continue to apply to the 2023/24 financial year.

On 1 July 2022, the Commonwealth Government announced that the deeming rates for 2022/23 and 2023/24 would be “frozen”. Consequently, any change in the deeming rates will only apply from 1 July 2024 (which given current interest rate levels) will most likely be increased.

The deeming rates are not indexed but are adjusted from time to time at the discretion of the relevant Commonwealth Minister.

Assets Test thresholds – for 20 March 2024 to 30 July 2024

The assets free area for the maximum age pension payment (the amount of counted assets which an age pension recipient can have before the assets reduce the age pension entitlement) has been increased as follows:

The asset test threshold cut off for a part pension is:

Final Points

The income free area (income means test) and the assets free area (assets means test) are changed each 1 July. The dollar thresholds for these areas have not, as yet, been announced.

The article does not apply to transitional age pension entitlements (ie an age pension entitlement which arose before 20 September 2009).

To learn more about this update and ensure your financial well-being is on track, feel free to contact us or schedule a visit to our offices in Adelaide.

Original Source: https://www.supercentral.com.au/resource-centre/newsletters/supercentral-news/march-2024-update-for-age-pensions/

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