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Australian Social Security Payments and Eligibility Thresholds to Increase

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Australian Pensioners to See Payment Increases and Eligibility Adjustments from March 20

More than 2.6 million Australian Age Pensioners are set to receive increased payments starting March 20.

This crucial indexation will also adjust the cut-off limits for income and asset tests, allowing more than 2.5 million age pensioners to retain eligibility with slightly higher earnings and asset values.

Payment Increases

Fortnightly payments across various categories will see an uplift:

  • Single Pensioners: Payment will increase by $22.20, reaching $1,200.90.
  • Couple Pensioners (each): Payment will increase by $16.70, reaching $905.20.
  • JobSeekers (Singles): Maximum payment will increase by $15.10 fortnightly, to $817.50.
  • Parenting Payment (Singles): Will increase by $19.60, reaching $1,066.30 per fortnight.
  • Commonwealth Rent Assistance (Singles): Will increase by $4 fortnightly, reaching $219.40.

Income Test Threshold Adjustments

The cut-off points for the income test will also be adjusted, providing more flexibility for pensioners:

  • Single Pensioners: The fortnightly income cut-off point will increase by $44.40 to $2,619.80.
  • Couple Pensioners (Combined): The fortnightly income threshold will increase by $66.80 to $4,000.80.

Asset Test Threshold Adjustments

Significant changes are also coming to asset test limits, enabling more individuals to qualify for a part-age pension:

  • Single Homeowners: The asset limit will increase by $7,500 to $722,000 for eligibility for a part-age pension.
  • Couple Homeowners (Combined): The asset limit will increase by $11,000 to $1,085,000.
  • Single Non-Homeowners: The asset limit will be $980,000.
  • Couple Non-Homeowners (Combined): The asset limit will be $1,343,000.

Deeming Rate Changes

Deeming rates, which are the assumed rates of return on financial assets like shares, superannuation, and bank accounts, will also increase.

  • A rate of 1.25 per cent will apply to financial assets under $64,200 for singles and $106,200 for couples combined.
  • Assets exceeding these amounts will be deemed at a rate of 3.25 per cent.

These new rates are an increase from the previous 0.75 per cent and 2.75 per cent, respectively, but remain below the official cash rate of 3.85 per cent.