The Department of Social Services has announced there will be no changes to the Age Pension rates and thresholds due to a reduction in CPI as a result of COVID-19.
They will remain as per the March 2020 adjustments until March 2021. The rate for the full Age Pension, including pension and energy supplements, for a single person is $944.30/fortnight ($24,552 p.a.), whilst the full couple rate is a combined $1,432.60/fortnight ($37,014 p.a.).
For homeowners, the maximum level of assessable assets you can hold without impacting your pension is $268,000 (Single Person) or $401,500 (Couple Combined). Age Pension entitlements will cut out entirely for those who have assessable assets over $583,000 (Single Person) or $876,500 (Couple Combined).
Alternatively, the maximum level of assessable income you can receive without impacting your pension is $4,628 (Single Person) or $8,216 (Couple Combined). Age Pension entitlements will cut out entirely for those who have assessable income over $2,066.60/fortnight ($53,732 p.a.) for a single person and $3,163.20/fortnight ($82,243 p.a.) for a couple combined.
Meeting the income test has been made a little easier with reduction to the deeming rates. For a single person, the first $53,000 of your financial assets has the deemed rate of 0.25% applied. Anything over $53,000 is deemed to earn 2.25%. For a couple, the first $88,000 of your combined financial assets has the deemed rate of 0.25% applied. Anything over $88,000 is deemed to earn 2.25%.
For more information, visit the Services Australia website here.