Age pension and deeming rates changed on July 1

THE age pension thresholds and the deeming rates changed on 1 July.

The asset cut-off points for a homeowner couple are now $1,092,000 - for a single pensioner $735,750. The income test cut-off points are $70,553.60 per annum for a couple and $46092.80 for a single.

Financial assets are now deemed to be earning 2.5% for the first $77,400 ($46,600 for singles), and 4% on the balance. For example, if a couple had $300,000 of financial assets their deemed income would be $10,839 a year being 2.5% on $77,400 ($1935) and 4% on $222,600 ($8,904).   These include interest bearing deposits, debentures, shares, share trusts, and friendly society and insurance bonds. However, it does not include property, and money in account-based pensions.

The changed rates should mean a pension increase for most part pensioners, and it may mean that people who were previously ineligible may now qualify for a part pension. There is an important message here for holders of the Commonwealth Seniors Health Card - they are the ones most likely to find themselves now qualifying.

Even though the part pension may be small it does entitle you to most of the prized concessions.

Your superannuation is not counted until you reach pensionable age.  We often encounter situations where the husband may be 65 or more and where the wife less than 60.  Wherever possible we encourage as much superannuation as possible to be held in the wife's name, as it is not counted by Centrelink, and this enables the husband to maximise his pension. 

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: noelwhit@gmail.com.
 

Topics:  age pension, noel whittaker, opinion, pension deeming rates, superannuation, tax




Local Real Estate

finda logo
Featured Real Estate
QLD’ER WITH BAY... $90000.00
QLD’ER WITH BAY WINDOW OPEN VERANDAHSEXCELLENT SOLID CONDITON,COLOURED LEADLIGHTSOPEN PLAN LIVING FEATURINGLARGE ...
STEEL FRAME HOMES OWNER... STEEL FRAME HOMES OWNER BUILDERS Great deals to suite each Individual. Quality, ...
FULLY SELF CONTAINED MOD... FULLY SELF CONTAINED MOD HOMES $14,990K for 6 x 2.4 x 2.5m ...

Featured Jobs

finda logo

Gympie jobs listed daily


Featured Jobs
Cooloola Christian... Cooloola Full Time
Accounts Clerk Gympie Full Time
FULL TIME WEB... Fortitude Valley Full Time 75,000 - 90,000
GENERAL MANAGER ... Gladstone Full Time $120 - $150


Local Partners

LATEST DEALS AND OFFERS

Job Listings

Search for your next job now.
Learn More

View today's ePaper!

Read the digital edition
Learn More

Cars For Sale

Find cars for sale online now.
Learn More

Property Listings

Post an ad from $30
Learn More

Local Profile

Stay Connected

Get the news as it happens, in your inbox

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Special Offers

Latest deals and offers

Horoscopes

Virgo

You may find yourself in the middle of an unusual conversation which will fascinate you. Although there are some vague clues within this...

read more

Marketplace

Special Offers & Promotions

Compare & Save