Age pension thresholds increase July 1 2023

Great news – age pension asset test limits to increase from July 1

For those clients that are currently not eligible for the age pension please read on. You may be entitled from July 1. There has been an increase in the asset test limit for a full-age pension as well as the cut out limit – meaning people on an age pension already may receive more per fortnight, and those who currently are not entitled may not be eligible.

If you need a refresher on what are the assessable assets for age pension please click here.

Please read on to discover what the changes are and see how the numbers increase and what it may mean for you.

Summary of the changes

Couples who own their home will see the full age pension assets limit move to $451,000 (currently $419,000), and cut out at $986,500 (currently $954,000).

Couples who do not own their home will see the full age pension assets limit move to $693,000 (currently $643,500) and cut out at $1,228,500 (currently $1,178,500).

Single homeowners are in a similar position. The asset test lower limit rises to $301,750 for homeowners (currently $280,000), and cuts out at $656,000 (currently $634,750).

Non-homeowners are allowed slightly more assets, with a full age pension limit of $543,750 (currently $504,500) and cuts out, i.e. you lose age pension, if your assets are greater than $898,500 (currently $859,250).

If I qualify for the full Age Pension does this payment change?

No. The full age pension stays at $802.00 for Couples and $1,064.00 for Singles. This doesn’t change in July.

What are the changes coming in on July 1 in more detail?

From 1 July the asset and income free areas along with the cut out limits are increasing significantly. This means a big increase to pension payments for PART pensioners. The lower assets test threshold is increasing, as is the cut out upper limit. This is great news for retirees as we know the cost of living has gone up, so more people will get assistance.

Table 1: Couples assets test 

	Home owner		Non-homeowner
	July 1	Current	July 1	Current
Lower limit	$451,000	$419,000	$693,500	$643,500
Cut out limit	$986,500	$954,000	$1,228,500	$1,178,500

Table 2: Singles assets test

	Home owner		Non-homeowner
	July 1	Current	July 1	Current
Lower limit	$301,750	$280,000	$543,750	$504,500
Cut out limit	$656,500	$634,750	$898,500	$859,250

Table 3: Comparison table

Relationship status	Homeowner status	Assessable assets	Current age pension entitlement per person	July 1  age pension entitlement per person	Fortnightly increase
Couple	Homeowner	$500,000	$680.50	$729.25	$48.00
	Non-homeowner	$724,500	$680.50	$755.50	$75.00
Single	Homeowner	$500,000	$404.00	$469.25	$65.25
	Non-homeowner	$724,500	$404.00	$521.75	$117.75

We hope this helps you navigate the complexities around age pension. Please feel free to share this with your friends and family who may also be eligible for the age pension. If you still miss out on age pension there may be strategies we can explore to get you under the cut out asset test limit.

Remember too, there is an income test. And we can work through this for any clients who are income tested.

As always, if you would like to discuss the contents of this newsletter please give us a call 07 5559 5760.