15th Jun 2018
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Age Pension update: 1 July 2018 changes
happy couple drinking tea

Changes to income and asset thresholds will take effect from 1 July 2018. 

Below are the new limits that will apply to you:

Centrelink income test limits for Age Pensions from 1 July 2018 

Situation For full pension/allowance (per fortnight) For part pension(pf) From 1 July 2018
Single up to $172 less than $1987.20
Couple (combined) up to $304 less than $3040.40
Illness separated (couple combined) up to $304 less than $3934.40

Centrelink asset test limits for full Age Pensions from 1 July 2018

Situation

Homeowners

Non-homeowners

Single

$258,500

$465,500

Couple (combined)

$387,500

$594,500

Illness separated (couple combined)

$387,500

$594,500

  

Centrelink asset test limits for part Age Pensions – effective from 1 July 2018

Situation

Homeowners

Non-homeowners

Single

$561,250

$768,250

Couple (combined)

$844,000

$1,051,000

Illness separated (couple combined)

$993,000

$1,200,000

  

Centrelink income test limits for transitional part Age Pensions from 1 July 2018

Situation

 

Single

less than $2077.00

Couple (combined)

less than $3378.00

Illness separated (couple combined)

less than $4114.00

Centrelink asset test limits for transitional part Age Pensions – effective from 1 July 2018

Situation

Homeowners

Non-homeowners

Single

$512,500

$719,500

Couple (combined)

$797,500

$1,004,500

Illness separated (couple combined)

$895,500

$1,102,500

Centrelink deeming thresholds from 1 July 2018 

Family Situation

Assets Threshold

Increase

Deeming Rate

Single

$0 – $51,200

$1000

1.75%

Above $51,200

 

3.25%

Pensioner Couple - combined (2)

$0 – $85,000

$1600

1.75%

Above $85,000

 

3.25%





    COMMENTS

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    TREBOR
    18th Jun 2018
    6:09pm
    Where's the encouragement to save and accumulate assets, and why is the continued theft by Colonel C'Link of a deemed 5% interest rate on accounts that return 3% allowed to continue?

    A government of thieves has nothing to offer in any discussion of any who seek to thieve from it. (snuckles)....
    Cowboy Jim
    18th Jun 2018
    6:33pm
    You might get 5% interest with the offers in our papers which state -
    "you may lose all interest and the capital as this is not a bank deposit investment". Now good luck with that! (normally written in very small type at the bottom of advert).
    Anonymous
    18th Jun 2018
    8:05pm
    Blame labor
    They introduced ridiculous deeming rates
    niemakawa
    18th Jun 2018
    9:35pm
    Raphael, effectively Australia is a one party state. There is little if anything to distinguish between Libs/Lab. Complacency in Australia is rife and most voters continue choosing one of the mainstream parties. Until the rigid voting habits of Australians change expect more of the same. I will be voting for The Australian Conservatives come the next election. Who will you vote for??
    Rae
    19th Jun 2018
    10:51am
    It's still pretty good here judging by the full cafes and shopping centres.

    Maybe we just stop wasting money and using debt to prop up businesses and let the Government of either Party get on with sorting out the consequences.
    Retired Knowall
    19th Jun 2018
    4:12pm
    The encouragement to save and accumulate assets is if you do it right you are not left to the mercy of any Govt. You are free to do as you please, stay overseas for however you like, gift any amount you like.
    If you don't and find yourself on the Govt. teat, life is a lot more difficult.
    OnlyGenuineRainey
    21st Jun 2018
    3:50pm
    How sad that we work, pay huge taxes, and save all our lives and the ONLY reward is not suffering bullying and cruel restrictions on our lifestyle by the Government!
    Fliss
    1st Jul 2018
    10:56am
    Retired Knowall,. You took the words right out of my mouth!
    Someone the other day was complaining that they were salary sacrificing heaps in order to be a self funded retiree & would therefore get no gvt pension. I said to her, your reward will be HUGE! You will be independent & not tied up reporting to gvt agencies. It is definitely the best way!
    PlanB
    1st Jul 2018
    11:01am
    Raphael -- the Libs have been in office long enough to change the deeming and with Lab we WERE getting a decent rate we are NOT NOW!
    Aussie
    1st Jul 2018
    1:26pm
    Well TREBOR maybe the way to do it is to sell everything or transfer to your kids a few years before your retirement age and withdraw your super then you have nothing no Super no Rentals ... nothing at all only a full pension that way you can live in peace until the next change ....... and your kids can pay you back by paying for your food and other things that you may need like car insurance rego your rent etc every month ... so Colonel C'Link ...can not touch you or give you a hard time .... and the kids get the benefit of no mortgage so they can also live in peace ..... maybe a good idea for some people with good family relations ... he he he he
    Aussie
    1st Jul 2018
    1:42pm
    This days we have to be very intelligent and able to think of all possibilities for our future and be able to adjust to different circumstances as they presented to us ...... we can not longer continue keeping the life we are use to unless you have a lot of money and you do not worry with pension but if your only income is the pension I believe that is important to be smart, adjust and be able to accept change because the politicians we have this days do not care about us they only take as much as they can so we need to be ready to play the game and adjust and do not complain because nothing we can do ... we gave then the power to make this changes any time they want ....we vote for them ... so I recommend to think and play the happy game by adjusting as you go and keep your life happy and healthy ..... I am just thinking because I have adjusted many years ago and I have a very happy live ...... Sorry I am just sharing my thinking for happy retirement

    ..... shit a lot of writing and lots of spelling and construction errors sorry I am a happy wog he he he he .....
    Misty
    1st Jul 2018
    3:54pm
    Yes Raphael the Coalition have been in long enough to change the deeming rate, be fair, they should share the blame too or are you too shortsighted to see that?.
    Young
    18th Jun 2018
    6:48pm
    Does deeming come in to play if you are assessed under the assets test?
    niemakawa
    18th Jun 2018
    7:01pm
    Yes, I believe it does. Centrelink will still use deeming rates in such cases. The age pension is calculated using both criteria Income/assets. Whichever produces the lowest amount will be rate of pension paid. Correct me if I am wrong.
    OnlyGenuineRainey
    18th Jun 2018
    8:03pm
    The assets test effectively deems income from assets at more than 7.8% p.a., despite the government claiming 5% is the average return. Hands up those who would love to get 7.8% bank interest?
    TREBOR
    19th Jun 2018
    11:35am
    Regardless of how much cash you have stashed in the bank, The Guv'nah will still DEEM you to have obtained a certain amount in interest - even when that amount is actually less than the DEEMED amount - and they will reduce pension in accordance with that DEEMED 'income' even if you can show you actually received less.

    You get no free rides with that lot!
    PlanB
    1st Jul 2018
    11:02am
    DArn right it does Young
    niemakawa
    18th Jun 2018
    7:02pm
    Deeming rates are not shown in the above table??
    sunnyOz
    18th Jun 2018
    7:44pm
    Yes - looks like something is missing from the table. For singles - deemed to earn 1.75% on first $51,200. Balance - 3.25%.
    HS
    19th Jun 2018
    1:40pm
    Perhaps it's because, the rates will not change until September 2018.

    18th Jun 2018
    8:03pm
    Everyone gets more and it keeps up with inflation.
    That’s the beauty of pension being linked to CPI
    TREBOR
    19th Jun 2018
    11:36am
    As long as CPI is founded in reality and not some myth to suit....
    Eddy
    19th Jun 2018
    1:31pm
    From your comment Raphael I suggest you, and others, do not understand exactly what CPI measures. It does not measure the cost of living, it measures inflation, and they are different things. The PBLCI (Public Beneficiary Living Cost Index) measures the cost of living for people on Centrelink benefits, such as old age pensioners. This s why John Howard dumped CPI for pensions and bought in PBLCI. The current government wants to dump PBLCI and revert back to CPI so that over the longer term the rise in pensions will be reduced.
    To illustrate compare OAP increases (which are indexed under PBLCI) with public service pensions (which are indexed using CPI). Over about a 12 year period from 2004 the OAP PBLCI indexation was about 70% greater than public service pensions CPI indexation.
    OnlyGenuineRainey
    19th Jun 2018
    2:37pm
    Raphael doesn't rely on a pension to live. If he did, he would be singing a very different tune.
    Marian
    19th Jun 2018
    12:37am
    The system is never work Libs/Lab the is the same lie & bully include the all senate system
    KSS
    19th Jun 2018
    7:22am
    So still not happy then even with an increase!
    TREBOR
    19th Jun 2018
    11:37am
    A small increase in how much you can earn before incurring loss of pension?

    What's to celebrate? I don't see any $50 rise in Pension rates here... just some fiddling with the assets and income tests, and most likely not enough to keep up with real market forces.
    MD
    1st Jul 2018
    8:36pm
    I'd seriously doubt any of us are likely to see "any $50 rise in Pension rates here... " Trebor - or there for that matter, 'there' being the other side of the river Styx.
    Misty
    2nd Jul 2018
    4:02pm
    How could you vote Greens when they want to open our borders?, look at all the strife illegal immigration is causing in Europe, they by pass the country they arrive in because they want to get to Germany because it is a rich country with a great social security system, we don't want that here.
    Misty
    2nd Jul 2018
    4:04pm
    This comment above is in reply to Justsane's comment below about voting Green in the next election.
    musicveg
    2nd Jul 2018
    8:20pm
    Misty have you checked Sustainable Australia Party they want to cut back on Legal Immigration, they think that the 200,000 legal immigrants coming to Australia should be cut back to 70,000. The refugees are no where near that number.
    HS
    19th Jun 2018
    11:43am
    So Single and Couple Pensioners can now (from 1 July) earn $2 per week more without their full pension being affected by the Income Test Limit. How generous. Indeed !
    South Australian Liberal senator Lucy Gichuhi has told a Kenyan television program that her $200,000 salary is "not a lot of money" in Australia.
    If $3,846.15 per week salary is "not a lot of money" in Australia what does she think $2 per week is? This is the Senator who voted against bringing the unemployed out of poverty.
    10th May 2018, 12:10 PM – Senate
    Motions - Pensions and Benefits - Increase single rate of Newstart and Youth The majority voted against a motion introduced by the Greens Senator Rachel Siewert (WA), which means it failed.
    The Australian Council of Social Service has called for an increase of $75 a week to allowance payments for single people from 1 January 2019. This Senator voted against the increase.
    To find out who else voted for or against go to:
    https://theyvoteforyou.org.au/divisions/senate/2018-05-10/3
    dreamer
    20th Jun 2018
    2:01pm
    This is a joke what did the LNP say join us and you will flying helicopters before you know it
    musicveg
    24th Jun 2018
    2:36pm
    Why are they so against raising Newstart and Youth allowance as well as pensions? They expect their wages and life time pensions to increase all the time and without asset testing, seems unfair to me. People will get sicker not being able to feed themselves and keep warm in winter or cool in summer, so will be a burden on the health system, then what?
    Ms Logik
    1st Jul 2018
    11:01am
    Thank you for link, HS. Very interesting to know. And now I also know who NOT to vote for in the next election...
    Justsane
    2nd Jul 2018
    3:12pm
    HS Yes, thanks for the link. I know which way I'll be voting now. Would never vote for LNP but Labor is just as bad for people on Newstart. Vote Greens, people, they may have their flaws but they have heart.
    musicveg
    2nd Jul 2018
    8:18pm
    Also consider voting Sustainable Australia Party or Independents, but check who the preference voting will go to.
    patti
    19th Jun 2018
    12:21pm
    I currently have some money in my savings account, which is there for the sole purpose of carrying out repairs to my house. I have borrowed it, and it came as a lump sum. I do hope Centrelink won't regard the tiny interest on this as "income" and drop my pension accordingly. They will be able to see that it diminishes as I get each repair done, if they bother to look!! Will wait with bated breath......
    HS
    19th Jun 2018
    1:27pm
    You need to update Centrelink on your financial position if there has been a change in circumstances of more than $2,000 since your last report. The fact that you borrowed and have a debt is irrelevant to Centrelink. It is relevant what that money that you borrowed is earning. If it's more than the Deeming Income Test threshold than your pension will be subject to review. You can update Centrelink on myGov/Centrelink website.
    Eddy
    19th Jun 2018
    3:12pm
    Looks like we will have to submit another application for OAP to Centrelink. Maybe we will just sneak in under the new maximum of $3040.40 for a couple, the deeming rates on financial assets are what just put us over last time I tried. Here's hoping!
    Marian
    19th Jun 2018
    7:20pm
    Ours family life in Australia from 1981 & we see the all negligence the system who not one of the any Governments ,parliaments or politician is act in any law the is system were is not way in & is not way end the is not complaints system the is disregard Australian & International the is not Democratic system in Courts & not any way to stop abuse by the all system Civil Rights Human Rights or rights as is in Constitution Rights protect Citizence all is against .all is fake who ewer any Government say in any election & all is false 100% ???
    niemakawa
    19th Jun 2018
    7:28pm
    Marian, a man's name which is common in central and eastern Europe. I get your drift.
    Cowboy Jim
    20th Jun 2018
    4:13pm
    Read it several times but could you put that in simple English for us lower people to understand?
    Sen.Cit.89
    1st Jul 2018
    11:34am
    I've no idea what your point is it is difficult to understand your comment????
    GrayComputing
    20th Jun 2018
    5:16pm
    It is time for all of us to rant at our MPs and Senators daily to take action for human decency and a huge stress reduction for pensioners

    NO ASSET TEST FOR A PENSION EVER AGAIN!
    A pension is not welfare.

    Most economist say we will save taxpayers money by dropping asset testing because of the massive overheads cost in running Centrelink and the 10,000 conflicting rules.

    Hiring more Centrelink staff will only increase taxpayer’s costs for processing the creeping insane red tape monster system politicians and well paid bureaucrats have created.

    Help scrap it now. Become a hero.

    Even poorer New Zealand has a NO ASSET pension so it is cheaper and user friendly.

    Why worry that few million$ earners get it too. That is peanuts to them, not enough for a good vintage champagne.

    Do retired and retiring people really look forward and want 100++ visits to/from Centrelink and be part of 3 million waiting queues and lost calls?

    Does your MP really like being part of the system that allows this indirect abuse of the elderly?

    This abuse is actually sponsored by our government and forced down to Centrelink and borders on a criminal act.

    Why do MPs normally compassionate persons let this Centrelink abuse happen at taxpayers’ expense?

    Some opposition and independent MPs stand to lose their chance at being part of the needed government changes

    We all need to tell our MP and senators every day that these criminal asset tests for a pension must be dropped now.

    Also contact opposition and independent MPs who can help us to get a fair deal on pensions

    NO ASSET TEST FOR A PENSION EVER AGAIN!
    PlanB
    1st Jul 2018
    12:00pm
    With you 100% GrayComputing !!!
    musicveg
    24th Jun 2018
    2:39pm
    Wow so my 82 year old mum can earn another $2 a week at the craft market, she will be excited (not).
    billy boy
    1st Jul 2018
    10:33am
    it's all cod's wallop, sadly
    ph
    1st Jul 2018
    10:41am
    Is superannuation counted as an asset for center-link purposes?
    Fliss
    1st Jul 2018
    10:50am
    It certainly is.
    Mad as hell
    1st Jul 2018
    11:45am
    Yes it is.
    If your spouse is you younger than yourself their super is not counted until the the super is in pension phase. You can transfer your super assets to your spouse to bring your assets down.
    It’s all legal and not dodgy.
    Not sure if the limit is $400k lifetime.
    Hope my explanation makes sense.
    Seek advice from a financial adviser.
    ph
    1st Jul 2018
    12:49pm
    ahhhhh financial advisers, another lot of self serving so called professionals, only in my opinion as the advice I received, at a quoted cost of $2000 to put the plan into place, I did myself for $0.
    Cowboy Jim
    1st Jul 2018
    5:42pm
    Yes, you can transfer money into super of your younger spouse. But do you trust them to be able to take it out again as a lump sum when you want it or has the law changed and you have to take it as an annuity? That would bug me.
    ph
    1st Jul 2018
    10:43am
    Warren Buffet, one of the riches men in the world said, 'it been a class warfare for the last 20 years, and we won'.
    PlanB
    1st Jul 2018
    11:04am
    Just try and get the said deeming rate -- NO way can you
    grumpyoldwoman
    1st Jul 2018
    11:46am
    When are we going to have a Federal Police Investigation into Centrelink and the way it is run? ?
    PlanB
    1st Jul 2018
    11:58am
    Not until we ALL STAND UP AND BE COUNTED
    MD
    1st Jul 2018
    8:30pm
    Answer, grumpyoldwoman - never - whilst C'link business operations are being conducted to the satisfaction of Treasury as currently appears to be the case.

    If C'link modus operandi does not currently meet with your approbation you can address your grievance to your local member, or contact the appropraite ombudsman.
    Marian
    1st Jul 2018
    12:11pm
    Were is the control all Governments A.P.S. & centrelink personnel were is the law for the public to see the records from 1-07-2018 & before ask the Federal Attorney when he stop lie & bully all the working Australian The A.F.P. is not different the never act in public Interest or law were is the Integrity in the system
    bundy
    1st Jul 2018
    12:26pm
    so when do we have a royal commision into c/link////I/m sure their will be people jailed...or put Politicians in for criminal decisions..
    MD
    1st Jul 2018
    8:18pm
    Rubbish, complete and utter drivel (your claim) bundy. Exactly what surety do you have to substantiate the claim - "their (sic) will be people jailed.." Maybe you're getting confused with the number of people - pollies included - that rearrange their affairs to claim the max benefit pertinent to their (oft - misguided) self assessment.

    Wasn't it the Iron Lady that said "Crime is crime is crime. It is not political" ?
    Hardworker
    1st Jul 2018
    1:01pm
    Why is the house I live in is exempt from the asset test yet the furniture is not, Dont we need funiture,should it be all inclusive
    ph
    1st Jul 2018
    1:28pm
    Wow, really, furniture is included in the asset test? Talk about trying their hardest to exclude as many as possible from a pension. I am now only buying second hand.
    PlanB
    1st Jul 2018
    1:36pm
    Yes furniture/linen/mats/cars/money etc. everything is classed as an asset -- BUT it is valued at what you would get for it if you took it to sell it second hand NOT what you paid for it NEW
    Older lady
    1st Jul 2018
    2:46pm
    In Italy they have stopped the big superannuation payouts for politicians. They are saving 40 million Euros a year. The politicians are taking the govt to court as they are not happy. This has to happen in Australia. And effect our vote next year. They should have to be treated like their voters.
    Older lady
    1st Jul 2018
    2:49pm
    https://www.independent.co.uk/news/world/europe/italys-mps-have-a-fight-on-their-hands-to-keep-16000-a-month-salaries-6284541.html
    ozrog
    1st Jul 2018
    2:53pm
    Watch out for the older generation. More places to store money than in a bank.
    Charlie
    1st Jul 2018
    3:31pm
    All said a person with a tidy nest egg, plus assets, and only a part pension, must be better off than than a person with no assets, little cash, full pension and renting.

    People can lose the last 10 years of employment due to early health decline. Also many people were in their mid thirties before compulsory super started so deprived of wealth at both ends of employment life.
    Misty
    1st Jul 2018
    3:56pm
    Centrelink is getting more and more like something run by a socialist country.
    MD
    1st Jul 2018
    7:58pm
    Misty, for you to make that claim suggests to me you'd be well advised to broaden your choice of reading matter. Either that or the few publications I've read weren't worth the paper they were printed on.
    Happy reading.
    Misty
    1st Jul 2018
    10:24pm
    Well MD in a few years it won't matter what we think, 60%+ of Milleniums, apparently that is what 21-38 are called, want a socialist society, they are not happy with Capitalism, say it has done nothing for them and they have lived in the best of times, at least in our country, maybe they should go and live in China and Nth Korea for a while and see what their attitude is then.
    MD
    2nd Jul 2018
    7:43am
    You may be right Misty...and I may be crazy (apologies to Billy Joel) although neither of us are clairvoyant - well to be exact I'm not - so it's one thing to make predictions about where we imagine the direction society is headed yet it may just as well prove to be an (as yet) entirely unforeseen outcome. Our world, thus the people's therein, is in a perpetual state of flux and Capitalism, China and Nth Korea, their/our millenials included, are but part of the mix in the great big melting pot.
    Aussie
    2nd Jul 2018
    1:32am
    I think is time for some fun ..... considering that more changes are due today .... and more coming shit so ..... enjoy this you tube movies is fun maybe you already seen but is always the second time that make it more funny and is related to pensions and changes .... have fun.

    https://www.youtube.com/watch?v=62zeXDP8WAo
    MD
    2nd Jul 2018
    9:48am
    There's hope for us yet eh Aussie. Count me in.
    Aussie
    2nd Jul 2018
    12:31pm
    MD ... there is always hope as long as you believe you can do it .... I am 75 and have a lot of hope and continue enjoying life in full going everywhere I can and doing all things that everybody say ...??What ??? you are to old to do that .... Stuff them if you can do it ..... do it ....

    Agreed mate yes we have hope .... he he he he
    Cherry7
    1st Sep 2018
    12:29pm
    Can someone please explain where you get the 5% deeming rate when it is clearly stated above that for single over $51000 plus and couples over $85000 the deeming rate is 3.25%
    PlanB
    1st Sep 2018
    1:58pm
    There is no way you can get that deeming of 3.5% from a bank account, that needs to be changed it has not been altered in years and is way out of date.
    I have not seen that post on the 5%


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