23rd Jun 2017
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Age Pension: new thresholds from 1 July 2017
Older couple looking at age pension rates

Annual indexation of income and asset thresholds will take effect from 1 July 2017. 

Below are the new limits that will apply:

Centrelink income test limits for Age Pensions from 1 July 2017 

Situation For full pension/allowance (per fortnight) For part pension(pf) From 20 March 2017
Single up to $168 less than $1944.60
Couple (combined) up to $300 less than $2978.40
Illness separated (couple combined) up to $300 less than $3853.20

Centrelink asset test limits for full Age Pensions from 1 July 2017

Situation

Homeowners

Non-homeowners

Single

$253,750

$456,750

Couple (combined)

$380,500

$583,500

Illness separated (couple combined)

$380,500

$583,500

One partner eligible (combined assets)

$380,500

$583,500

  

Centrelink asset test limits for part Age Pensions - effective from 1 July 2017

Situation

Homeowners

Non-homeowners

Single

$550,000

$753,000

Couple (combined)

$827,000

$1,030,000

Illness separated (couple combined)

$973,000

$1,176,000

One partner eligible (combined assets)

$827,000

$1,030,000

  

Centrelink income test limits for transitional part Age Pensions from 1 July 2017

Situation

 

Single

less than $2,038.00

Couple (combined)

less than $3,317.00

Illness separated (couple combined)

less than $4,040.00

Centrelink asset test limits for transitional part Age Pensions - effective from 1 July 2017

Situation

Homeowners

Non-homeowners

Single

$503,250

$706,250

Couple (combined)

$783,000

$986,000

Illness separated (couple combined)

$879,500

$1,082,500

One partner eligible (combined assets)

$783,000

$986,000

Centrelink deeming thresholds from 1 July 2017 

Family Situation

Assets Threshold

Rate of Deemed Income

Single

$0 – $50,200

1.75%

Above $50,200

3.25%

Allowee Couple - per person (1)

$0 – $41,700

1.75%

Above $41,700

3.25%

Pensioner Couple - combined (2)

$0 – $83,400

1.75%

Above $83,400

3.25%





    COMMENTS

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    Redhead
    23rd Jun 2017
    3:40pm
    So they are still deeming the rate when over $83,400 at 3.25% I wish they would tell us where we can get that amount.
    Theo1943
    23rd Jun 2017
    5:04pm
    It should be fixed to the bank rate.
    David
    23rd Jun 2017
    5:15pm
    Superannuation is running way above the deeming rates. Current financial year is close to 10%.
    Waiting to retire at 70
    23rd Jun 2017
    8:38pm
    David you need to know what the 10% means. I've spoken today with Super Ratings and First State Super, BOTH have confirmed that the figures they post don't include:

    1. Tax (15% on earnings in an accumulation account), nor
    2. fund management fees (these vary from fund to fund and investment type, but for FSS they take 0.15% of your super each year to manage your investments in an accumulation account and 0.40% each year to manage your investments in a pension account - Why the difference?) nor
    3. Admin fees.

    Further review of the ratings table showed they were not comparing 'apples with apples'. They had compared FSS's "Growth Account" with other funds 'Balanced Accounts". Growth accounts have a higher risk profile and are likely to be too risky to invest in as you get older. In other words they are a quick way to get onto a public funded pension if they fail (and they do). So a 3.25% deeming rate used to assess your superannuation (an asset) is in fact higher than most superannuation fund would give you on cash, bonds and annuities.

    Further review of the ratings table showed they were not comparing 'apples with apples'. They had compared FSS's "Growth Account" with other funds 'Balanced Accounts". Growth accounts have a higher risk profile and are likely to be too risky to invest in as you get older. In other words they are a quick way to get onto a public funded pension if they fail (and they do). So a 3.25% deeming rate used to assess your superannuation (an asset) is in fact higher that may superannuation fund would give you on cash, bonds and annuities.

    Headliner rates of 10% published by the industry do NOT refer to the amount your super has earned for you. It can include what you've earned for the ATO, the superannuation's admin staff and the superannuation's fund manager. It's similar to a company's EBITDA (earnings before tax, interest, depreciation and amortization). The super fund league tables are just a measure of a FUND'S PERFORMANCE, NOT what it has earned for you.
    OlderandWiser
    24th Jun 2017
    5:07am
    You also have to consider risk. 10% in one year sounds great, but if you then have negative returns for a few years, or some of the investments fail completely, how good is that 10% looking? How many retirees feel completely confident their super will continue to yield solid returns that keep up with inflation?
    Retired Knowall
    26th Jun 2017
    8:02am
    My Capital Stable account with REST is currently earning 8.75% YTD and 6.48% over the last 7 years.
    Oars
    12th Oct 2017
    11:19am
    tHANKS FOR THOSE DETAILS. i AM SURE MANY OF US ARE DISGUSTED WITH HOW MUCH THESE Super Fund managers take out of our funds on the guise of "MANAGING THE ACCOUNT". These days, "MANAGING AN Account" merely requires them to bunch together all of us mugs' money and looking at the list. It's on a computer, so they don't need to check eacj client. Then these "Super-Fund Managers pat themselves on the back for "conning" yet another mug to their free income. What a total bludge- they are not "managing" our money, but they are spending it on so-called investments, that have frequently been "lemons". These managers don't care- it's not their money, but they still get a monthly fee for their "management". Bah !!!
    Nerk
    23rd Jun 2017
    5:16pm
    If you are a share holder it is deemed at 3.25 even if you earn 5%, better off sleeping on a lumpy mattress.
    Pamiea
    23rd Jun 2017
    5:38pm
    I was told that if you receive money such as an inheritance if you work so many hours in a month you can put this money into your super and get the higher return. I will be looking into this further.
    Oars
    12th Oct 2017
    11:22am
    Instead of losing your money to these Super Funds why not do your own investment- get a band of others like you and set up your own fund- without the bludging Management fees to pay off.
    johnp
    24th Jun 2017
    4:48am
    3.25% is ridiculous and govt should be ashamed for using this level as many pensioners would not know where to get 3.5% and they may not have any good performing super - absolutely disgusting
    OlderandWiser
    24th Jun 2017
    5:01am
    So a couple can earn nearly $1500 per week and still get a part pension, but one who committed the terrible sin of saving for retirement might be earning only $360 per week and denied even pensioner benefits until they drain their savings away. It's way past time for a complete overhaul. The system is not just patently unfair, but economically destructive.
    Pancho
    24th Jun 2017
    7:26am
    I'm a bit confused by all of this. We have been retired for about 6 months and are on part pensions. The balance of our Retirement funds have gone up a bit since we retired, do we have to tell Centrelink about this? How does it work?
    Travelling Man
    24th Jun 2017
    9:06am
    Hola Pancho. Don't worry, Señor. Your Super fund will send you a balance sheet of their pension payments plus any extra diñero withdrawals along with your final balance sometime after the close of the financial year. Centrelink will send you a simple form on which you can inform them of these amounts on which they will then calculate your new part pension payments. Vaya con Dios!
    Kosmo
    24th Jun 2017
    9:46am
    Clear as mud
    Pancho
    24th Jun 2017
    9:59am
    Gracias.
    Sophia
    24th Jun 2017
    6:06pm
    Totally agree with johnp and.....why don't they take more care with the 165 million dollars the guys at the ATO have walked out with, can anyone tell me where can I get 3.25% with no risk :(
    johnp
    26th Jun 2017
    9:23am
    for Sophie, many of the industry super funds have been getting in excess of 10% per annum with fairly minimal risk really even some of the retail funds although less of them are that good. This is a good place to got to
    http://investmentcentre.moneymanagement.com.au/tools/tnau/charting.aspx?typecode=NM990100
    johnp
    26th Jun 2017
    9:29am
    whilst the pollies (and many CEOs, upper management etc) continue to rip off the system (cos they can) with such as all their travel perks etc etc then the pensioners will be fed the food scraps like a mangy dog
    Sophia
    26th Jun 2017
    12:39pm
    Thank you johnp for the link, I know most Super Balance has been getting around 10% but the risk is there.
    elephants
    28th Jun 2017
    11:09am
    Something different RE PUBLIC TRANSPORT .We are from qld & have been in NSW .The transport system for pensoiners is fantastic $2.50 for a whole day train, ferry bus ,,light rail , etcThis encourages u to use it.Brisbane (dont know about other states ) could take a big look at it. Thank u NSW
    Sevi
    4th Jul 2017
    5:26pm
    The Public Transport in WA is wonderful for Pensioners, free all day - bus, train and (boat over to South Perth)
    john
    5th Aug 2017
    12:10pm
    I have a part time working spouse, $1500 a fortnight , and I, a defined pension of $1217 a fortnight gross from my lifes working employer . A property worth about $350,000 , its Owed $111,000.00 thousand, own our live in home.
    Cash poor, asset costly. Have no idea whether I can get a health card or a part pension , some would say we are in a healthy wealth situation. Well when you have no money, that sounds a bit strange to me.
    But we allow in new comers to live on welfare , or give them jobs when our own kids can't get a job or buy a house. The Aussie Pollie has really fallen into the sewer bucket these days. Liars, cheats, and the reckoning is coming!


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