Australia Old Age Pension Increase – Despite the expansion of superannuation over the past thirty years, the Age Pension remains a crucial income source for many Australian retirees. Rice Warner reports that approximately 39% of Australians of Age Pension age receive the full Age Pension, while an additional 24% receive a partial pension.
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What level of income does the Age Pension offer?
| Category | Fortnightly Payment | Annual Payment |
|---|---|---|
| Single | $1,116.30 | Approximately $29,028 |
| Couple (each) | $841.40 | Approximately $21,876 |
| Couple (combined) | $1,682.80 | Approximately $43,753 |
| Couples separated due to illness (combined) | $2,232.60 | Approximately $58,048 |
Latest Age Pension Rate Changes:
| Change Description | Increase Amount per Fortnight |
|---|---|
| Single | $19.60 |
| Couple (per person) | $14.70 |
Australia Old Age Pension Payment Dates
- The Age Pension in Australia is usually paid biweekly, but beneficiaries facing financial difficulties can request weekly payments.
- Pensioners are eligible to receive advance payments up to three times every six months.
- The maximum advance payment amounts to $1,401.60 for singles and $1,056.45 for couples.
- Payments for July will be issued on July 25th, with direct deposits expected by July 31st and checks arriving by August 14th.
Australia Old Age Pension 2024 Asset Test
The assets test varies based on whether individuals own a home or not. For instance, a single homeowner can possess assets up to $314,000 to qualify for a full pension, whereas a non-homeowner can have assets up to $566,000. Transitional rate rules apply different limits and reduction rates, ensuring comprehensive assessment of an individual’s financial circumstances when determining pension eligibility.
Australia Old Age Pension Amount
The tables below offer detailed information on the recent increase and the breakdown of the Age Pension.
Age Pension rates for a single person (residents)
| Amount | Increase | |
|---|---|---|
| Maximum base rate | $1,020.60 | $18.10 |
| Maximum pension supplement | $81.60 | $1.50 |
| Energy supplement | $14.10 | – |
| Total (per fortnight) | $1,116.30 | $19.60 |
| Total (per year)* | $29,023 | $510 |
Age Pension rates for a couple living together (residents)
| Amount (each) | Increase (each) | Amount (combined) | Increase (combined) | |
|---|---|---|---|---|
| Maximum base rate | $769.30 | $13.60 | $1,538.60 | $27.20 |
| Maximum pension supplement | $61.50 | $1.10 | $123.00 | $2.20 |
| Energy supplement | $10.60 | – | $21.20 | – |
| Total (per fortnight) | $841.40 | $14.70 | $1,682.80 | $29.40 |
| Total (per year)* | $21,876 | $382.20 | $43,753 | $764.40 |
Next Age Pension Increase
The next potential increase in Age Pension rates is expected on 20 September 2024. While increases are anticipated, they are not guaranteed, as the Australian Bureau of Statistics bases these adjustments on changes in the Consumer Price Index (CPI), Male Total Average Weekly Earnings, and the Pensioner and Beneficiary Living Cost Index. Notably, in September 2020, Age Pension rates did not rise for the first time since 1997.
Age Pension rates, along with the upper thresholds for the assets and income tests that determine eligibility for a part Age Pension, are reviewed and adjusted every March and September. The lower limits for eligibility for the full Age Pension are adjusted annually in July.
Qualifying for the Age Pension
To qualify for the Australian Age Pension, you must meet certain criteria:
- Age: You must have reached Age Pension age, which is currently 67, though it depends on your date of birth.
- Residency: You must satisfy Australian residency rules.
- Means Testing: You must pass both an income test and an assets test.
Based on your income and the value of your assets, you may be eligible for either a full or partial Age Pension.
You can also have a look at this pdf provided by the Australia’ official website service Australia.
