Around one million pensioners to get July payment increase

Changes to the asset and income thresholds will result in a small pension increase for around one million part-rate age pensioners and carer payment recipients.

The increase to income and asset limits will take place on 1 July as part of the annual indexation measures applied to the means test.

Pensioners receiving a part rate will benefit from the increase in the free areas because the amount of income and assets allowed before their payment is affected is increasing. 

Read more: Small rise in Age Pension numbers

The Age Pension, Disability Support Pension and Carer Payment single income free area will increase by $2 to $180 per fortnight, which will increase their payment by $1 per fortnight, and the couple combined income free area will increase by $4 to $320 per fortnight.

The maximum allowable income for age pensioners before their payments are stopped has also increased by $2 per fortnight, with the new cut-off from 1 July being $2085.40 per fortnight.

The combined maximum allowable income for couple before their payments are cut will lift by $4 to $3192.40 per fortnight, while an illness-separated couple will be able to earn $4130.80 per fortnight.

Read more: Key economic indicator points to Age Pension increase in September

The number of assets a pensioner couple who own their own home can have before it affects their rate of payment will increase to $405,000 (excluding their home) up from $401,500, which will flow through to increase their payment by $10.50 per fortnight.

A single homeowner will be able to have assets of $270,500 before their pension is affected, up $2500 on the current threshold, while non-homeowning singles will be able to have $487,000 in assets before their pension is affected, an increase of $4500.

A couple who do not own their own home will be allowed to have assets totalling $621,500, an increase of $5500 on the current asset limit.

Read more: Aussies believe things look dire for retirement

The disqualifying asset thresholds will also increase on 1 July, which will increase the number of Australians that may become eligible to receive a pension payment.

Single homeowners can have up to $588,250 in assets (an increase of $2500) to be eligible for a pension payment, while single non-homeowners can have $804,750, an increase of $4500.

A homeowner couple can have up to $884,000 in assets (an increase of $3500) and be eligible for a pension payment, while non-homeowning couples can have $1,100,500 in assets, an increase of $5500.

The deeming rate thresholds will also be adjusted as part of the 1 July indexation, with the singles threshold lifting to $53,600 from $53,000 and the couples combined threshold lifting to $89,000 from $88,000.

More detail on the new payment rates and thresholds are available at

Will you receive a pension increase as a result of these changes on 1 July? Why not share your thoughts on the indexation in the comments section below?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Written by Ben