From 20 September 2022, changes to the age pension will take effect, to determine a recipient’s level of age pension. The following table provides the changes from the previous asset limits and the future (approximate) situation for homeowners.
| Current | Previous | |
| Asset Limit for maximum Single Pension | $280,000 | $280,000 |
| Asset Limit for part Single Pension (app) | $622,250 | $609,750 |
| Asset Limit for maximum Couple Pension | $419,000 | $419,000 |
| Asset Limit for part Couple Pension (app) | $935,000 | $915,500 |
| Taper rate (amount lost once limit reached) | $3.00 per $1,000 | $3.00 per $1,000 |
The idea is to reduce the amount of pension paid to those with higher levels of assets while extending the full age pension to those with lower levels of assets. The family home remains excluded for now.
The following table gives an idea of the approximate age pension that will be received by a single person given certain levels of assessable assets. Again, this is for homeowners only.
| Single | |
| Assets | Approximate Age Pension |
| 280,000.00 | $1,026.50* |
| 300,000.00 | $966.50 |
| 350,000.00 | $816.50 |
| 400,000.00 | $666.50 |
| 450,000.00 | $516.50 |
| 500,000.00 | $366.50 |
| 600,000.00 | $66.50 |
| Couple | |
| Assets | Approximate Age Pension |
| 419,000.00 | $1,547.60* |
| 450,000.00 | $1,454.60 |
| 500,000.00 | $1,304.60 |
| 550,000.00 | $1,154.60 |
| 600,000.00 | $1,004.60 |
| 650,000.00 | $854.60 |
| 700,000.00 | $704.60 |
| 750,000.00 | $554.60 |
| 800,000.00 | $404.60 |
| 850,000.00 | $254.60 |
| 900,000.00 | $104.60 |
*Estimated full rates of Age Pension at 20 September 2022. Reductions are based on this amount.
Strategies such a gifting and funeral bonds are still available to reduce your assets and increase your age pension but please contact me to discuss your financial situation to ensure they are right for you personally.
Want to know more?
If you would like to know more about our Pension Services, click here.
Otherwise feel free to contact us and organise a time to interview one of our advisers.
Disclaimer: Any advice provided in this document is General Advice Only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. If any products are detailed on this document, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions. While all care has been taken in the preparation of this newsletter, The Financial Link Group Pty Ltd does not warrant or represent that the information is accurate, complete or current.
