The Centrelink Pension Increase for 2024 is now in effect, offering enhanced financial support for older Australians. With updates to income and asset thresholds, many pensioners will see increased payments or become newly eligible for benefits.
These changes reflect the government’s commitment to addressing inflation and ensuring economic security for retirees.
Income Test Thresholds
Adjustments to the income test thresholds allow pensioners to earn more before their payments are affected. Here’s the breakdown:
- Single Pensioners: Income-free area raised to $212 per fortnight (from $204). Beyond this, payments reduce by 50 cents for every dollar earned over the limit.
- Couple Pensioners: Combined income-free area increased to $372 per fortnight (from $360). Reductions also occur at 50 cents for each additional dollar.
The maximum income limits before pension payments cease are:
| Pensioner Type | Old Income Limit (Per Fortnight) | New Income Limit (Per Fortnight) |
|---|---|---|
| Single Pensioners | $2,436.60 | $2,444.60 |
| Couple Pensioners | $3,725.60 | $3,737.60 |
Asset Test Thresholds
The asset test thresholds have been updated to account for inflation, allowing higher asset values without impacting pension payments.
For Homeowners:
- Single Pensioners: Full pension asset limit now $314,000 (up from $301,750).
- Couple Pensioners: Combined limit increased to $470,000 (up from $451,500).
For Non-Homeowners:
- Single Pensioners: Full pension asset limit now $566,000 (up from $543,750).
- Couple Pensioners: Combined limit raised to $722,000 (up from $693,500).
Part Pension Limits
For those eligible for part pensions, the new thresholds are as follows:
| Homeownership Status | Single Limit | Couple Limit |
|---|---|---|
| Homeowners | $686,250 | $1,031,000 |
| Non-Homeowners | $938,250 | $1,283,000 |
Deeming Rates and Thresholds
Although deeming rates remain frozen until June 2025, the thresholds have been indexed:
- Single Pensioners: First $62,600 of financial assets deemed at 0.25% (up from $60,400).
- Couple Pensioners: Combined financial assets up to $103,800 deemed at 0.25% (up from $100,200).
Amounts above these thresholds are deemed to earn 2.25%.
Other Pension-Related Changes
Several other adjustments complement the 2024 pension increase, ensuring broader financial support:
- Retirement Villages and Granny Flats: Additional allowable assets increased to $252,000 (from $242,000).
- Special Disability Trusts: Concessional asset value limit now $813,250 (up from $781,250).
- Exempt Funeral Investments: Threshold raised to $15,500 (up from $15,000).
Reviewing Your Eligibility
Pensioners should review their financial circumstances to see how the updated thresholds may affect their benefits. Contacting Centrelink or consulting with a financial advisor is recommended for personalized guidance.
The Centrelink Pension Increase for 2024 provides much-needed relief to older Australians. With revised income and asset thresholds, enhanced deeming rates, and additional allowances, many pensioners will benefit from higher payments and improved financial security. Staying informed and reviewing eligibility is key to making the most of these changes.
FAQs
1. What is the new income-free area for single pensioners in 2024?
The income-free area for single pensioners has increased to $212 per fortnight, up from $204.
2. What is the maximum asset limit for non-homeowner single pensioners receiving the full pension?
The maximum asset limit is $566,000 for non-homeowner single pensioners.
3. How much can couple pensioners earn before their payments cease?
Couple pensioners can earn up to $3,737.60 per fortnight before losing their payments.
4. What is the deeming rate for financial assets in 2024?
The deeming rate for the first $62,600 (single) or $103,800 (couples) of financial assets is 0.25%.
5. Are retirement village residents eligible for higher pension thresholds?
Yes, retirement village and granny flat residents have an extra allowable asset limit of $252,000.
