Age Pension update: 1 July 2018 changes

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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%

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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77 Comments

Total Comments: 77
  1. 0
    0

    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)….

    • 0
      0

      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).

    • 0
      0

      Blame labor
      They introduced ridiculous deeming rates

    • 0
      0

      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??

    • 0
      0

      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.

    • 0
      0

      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.

    • 0
      0

      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!

    • 0
      0

      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!

    • 0
      0

      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!

    • 0
      0

      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

    • 0
      0

      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 …..

    • 0
      0

      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?.

  2. 0
    0

    Does deeming come in to play if you are assessed under the assets test?

    • 0
      0

      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.

    • 0
      0

      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?

    • 0
      0

      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!

    • 0
      0

      DArn right it does Young

  3. 0
    0

    Deeming rates are not shown in the above table??

  4. 0
    0

    Everyone gets more and it keeps up with inflation.
    That’s the beauty of pension being linked to CPI

    • 0
      0

      As long as CPI is founded in reality and not some myth to suit….

    • 0
      0

      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.

    • 0
      0

      Raphael doesn’t rely on a pension to live. If he did, he would be singing a very different tune.

  5. 0
    0

    The system is never work Libs/Lab the is the same lie & bully include the all senate system

  6. 0
    0

    So still not happy then even with an increase!

    • 0
      0

      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.

    • Profile Photo
      0
      0

      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.

    • 0
      0

      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.

    • 0
      0

      This comment above is in reply to Justsane’s comment below about voting Green in the next election.

    • 0
      0

      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.

  7. 0
    0

    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

    • 0
      0

      This is a joke what did the LNP say join us and you will flying helicopters before you know it

    • 0
      0

      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?

    • 0
      0

      Thank you for link, HS. Very interesting to know. And now I also know who NOT to vote for in the next election…

    • 0
      0

      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.

    • 0
      0

      Also consider voting Sustainable Australia Party or Independents, but check who the preference voting will go to.

  8. 0
    0

    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……

    • 0
      0

      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.

  9. 0
    0

    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!

  10. 0
    0

    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% ???

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