Since July 1, 2025, states the Australian Government, changes would take place in the pension system aiming at keeping support in line with the rising cost of living and inflation. The changes will involve Age Pensioners, whether singles or couples, and those receiving Carer Payments and Disability Support Pensions.
Increased Pension Rates
A raise in the base pension rate by roughly 2.5% goes to show that the Government is trying to sustain the purchasing power of pensioners.
Single pensioners will receive an increase of $26.60 per fortnight, which makes it $1,142.90 in total. Couples, on the other hand, will receive $18.30 more, increasing their payments to $859.70 and a joint total of $1,719.40. Carer and Disability Support payments are also being increased by $26.60 per fortnight, in line with the new single pension rate.
Adjusted Income and Asset Thresholds
In order to allow more seniors to qualify for full or part pensions, the income and asset test thresholds are being raised. Under the new regulations, singles can earn up to 212 dollars a fortnight before being affected by a reduction of their pension, while couples boast a combined threshold of 372 dollars.
Second, the current asset test thresholds will be raised for singles to 301,750 dollars for homeowners and 543,750 dollars for non-homeowners. These thresholds for couples are 470,000 and 722,000, respectively. That means that some people who had lost their eligibility under the older, lower thresholds may now regain their entitlement to part payments.
Impact of Deeming Rate Adjustments
The deeming rates, which determine the calibrating of assessed income from financial assets, are presently being held at 0.25% for the lower threshold and 2.25% for the higher one until June 30, 2025. Any change thereafter could be adverse to the level of pension payouts depending on the changes made.
An increase in deeming rates would see the pensioners suffer loss on account of higher deemed income from the same financial assets, whereas a decrease in deeming rates may lead to an increase in the pension payments. ([$3,300 Centrelink change that would leave thousands of pensioners.