Update to Aged Pension Rates - September 2023

In the ever-evolving landscape of retirement income, the Age Pension remains a critical financial resource for many Australian retirees. Despite the growth of superannuation over the past three decades, recent data from Rice Warner reveals that approximately 39% of Australians of Age Pension age receive the full Age Pension, with an additional 24% receiving a part pension.

The Income Breakdown: Latest Age Pension Changes (Effective September 20, 2023)

Commencing on September 20, 2023, the maximum full Age Pension will experience a notable increase. For single individuals, the fortnightly payment will rise by $32.70, while for couples, it will increase by $24.70 per person, per fortnight.

The updated full Age Pension rates for Australian residents during the period from September 20, 2023, to March 19, 2024, are detailed below:

  • Single: $1,096.70 per fortnight (equivalent to approximately $28,514 annually)

  • Couple (each): $826.70 per fortnight (equivalent to approximately $21,494 annually)

  • Couple (combined): $1,653.40 per fortnight (equivalent to approximately $42,988 annually)

  • Couples separated due to illness will each receive the Single rate, totalling $2,193.40 per fortnight (equivalent to approximately $57,028 annually).

Please see the tables below for a more comprehensive breakdown of these recent changes and a detailed overview of Age Pension rates.

Looking Ahead: Potential Changes in March 2024

It's important to note that the Age Pension rates may undergo further adjustments on March 20, 2024. While increases are likely, they are subject to evaluation by the Australian Bureau of Statistics, who consider factors such as changes in the Consumer Price Index (CPI), Male Total Average Weekly Earnings, and the Pensioner and Beneficiary Living Cost Index. It's worth noting that in September 2020, the Age Pension rates remained unchanged, marking the first time since 1997.

Age Pension rates, as well as the upper thresholds for assets and income tests used to determine part Age Pension eligibility, are reviewed biannually in March and September. The lower limits used to assess full Age Pension eligibility change annually in July.

 

Qualifying for the Age Pension

To qualify for the Age Pension in Australia, several criteria must be met, including:

  1. Reaching the Age Pension age, which currently stands at 67 and may vary depending on your date of birth.

  2. Passing both an income test and an assets test, depending on your level of income and asset ownership. 

Assets Test:

  • Single homeowners: Assets valued below $301,750

  • Single non-homeowners: Assets valued below $543,750

  • Couples (combined) homeowners: Assets valued below $451,500

  • Couples (combined) non-homeowners: Assets valued below $693,500

Income Test:

  • Single: Income below $204 per fortnight (approximately $5,304 annually)

  • Single part Age Pension: Income below $2,397.40 per fortnight (approximately $62,332 annually)

  • Couple combined: Income below $360 per fortnight (approximately $9,360 annually)

  • Couple part Age Pension: Income below $3,666.80 per fortnight (approximately $95,337 annually)

Additionally, it's worth noting that individuals can earn up to $300 per person per fortnight (up to $7,800 annually) from employment, which is not included in the Age Pension income test—this is known as the work bonus. For the 2023 calendar year, the maximum annual credit for the work bonus has been temporarily increased from $7,800 to $11,800.

Should you have any questions or require assistance with your retirement planning, we invite you to schedule a consultation with our experts at Salt.

Jenni Anderson