The Department of Social Services has released revised income and assets test thresholds for the Age Pension to take effect from 1 July 2019.
Australians of Age Pension age can receive some income – from such areas as investments, property rental or salary – and receive an Age Pension. However, there are disqualifying limits.
From 1 July, a single can receive $174 per fortnight (up from $172), a couple combined and an illness-separated couple combined $308 per fortnight (up from $304).
The new disqualifying income limit for singles is $2026.40 (up from $2024.40), for couples combined $3100.40 (up from $3096.40) and for illness-separated couples combined $4012.80 (up from $4008.80).
Exceeding the fortnightly income limit will see the Age Pension reduced by 50 cents for every $1 over the limit, until the disqualification limit for a part Age Pension is reached, at which point the Age Pension payment will cease.
The assets test thresholds have also been adjusted, to take effect from 1 July.
These limits are used to determine qualification for an Age Pension and the rate at which that will be paid.
The asset-free areas to qualify for a full Age Pension (homeowners): singles can have assets to the value of $263,250 (up from $258,500) – an increase of $4750; couples combined and illness-separated couples $394,500 (up from $387,500) – an increase of $7000.
The asset-free areas to qualify for a full Age Pension (non-homeowners): singles can have assets to the value of $473,750 (up from $465,500) – an increase of $8250; couples combined and illness-separated couples combined $605,000 (up from $594,500) – an increase of $10,500.
The asset-free areas to qualify for a full Age Pension for retirement village and granny flat residents are: $210,500 (up from $207,000) – an increase of $3500.
The new disqualifying asset limits for single homeowners are $572,000 (up from $567,250) – an increase of $4750, and for single non-homeowners $782,500 (up from $774,250) – an increase of $8250.
For couple combined homeowners: $860,000 (up from $853,000) – an increase of $7000.
For couple combined non-homeowners: $1,070,500 (up from $1,060,000) – an increase of $10,500.
Will the new thresholds make a difference to your retirement income?
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