Part pensioners can expect a welcome jump in payments come 1 July.
Changes to the threshold levels mean some households may be up to thousands better off for the next financial year.
The full Age Pension rate is not changing but the thresholds that determine a part pension will be adjusted for inflation.
As well as part pensioners seeing more in their bank balance, the indexation will also mean many part pensioners will be able to move to a full Age Pension and more people will be eligible for a part pension.
And it’s not just the part pension, it’s all the concessions that are part of the package if you become eligible for the Age Pension or part pension.
The Department of Social Services has announced the rate increases for 1 July.
Under the assets test, each $1000 worth of assets over the threshold reduces the pension by $3 a fortnight.
The asset-free area for maximum payment for homeowners will jump from $280,000 to $301,750, a difference of $21,750. This will translate to an extra $65.25 a fortnight, or $1696.50 a year.
For a couple, the $32,500 threshold increase will mean an extra $97.50 a fortnight or $2535 a year.
The asset-free area for maximum payment for non-homeowning singles jumps from $504,500 to $543,750, and from $643,500 to $693,500 for couples.
The upper level at which you will be disqualified for a pension moves from $954,000 for a homeowner couple to $986,500 and for single homeowner the figure increases from $634,750 to $656,500.
For non-homeowners, the threshold increases from $859,250 for $898,500 for singles and from $1.178,550 million to $1.228,500 million for couples.
Revalue your assets
With these increases, the financial year may a be a good time to revalue your assets. Unless your furniture and vehicles are of exceptional quality, they will have almost certainly devalued over the past year.
The amount pensioners can earn before their income starts to reduce under the income test is also increasing, but not by much.
Under the income test, each $1 of income above the threshold reduces the amount of pension by 50 cents a fortnight.
The new thresholds only increase the amount pensioners can earn by $14 a fortnight for singles and $24 for couples. This represents an increase of $182 a year for singles and $312 for couples.
The next increases will be announced on 20 September and will cover another increase to the upper cut-off thresholds.
Will these changes affect your income? Or will you qualify for a part payment now? Why not share your outcomes in the comments section below?
Also read: Inflation and interest rates put pressure on superannuation in May