Aged Pension Rates
Please note that the following is valid for the period 1 July – 19 September 2012 and you should contact your financial adviser before acting on any of the information presented below.
The Age Pension is a government support payment; to assist Australian residents achieve an adequate level of income when they reach Age Pension age.
The amount payable is based on your age, home ownership and marital status as well as the Income and Assets tests.
The qualifying age for a male is 65. The age for females is increasing up to age 65 in line with the qualifying age for men as shown in the following table:
|Women born between||Eligible age for Age Pension|
|1 July 1935 and 31 December 1936||60½|
|1 January 1937 and 30 June 1938||61|
|1 July 1938 and 31 December 1939||61½|
|1 January 1940 and 30 June 1941||62|
|1 July 1941 and 31 December 1942||62½|
|1 January 1943 and 30 June 1944||63|
|1 July 1944 and 31 December 1945||63½|
|1 January 1946 and 30 June 1947||64|
|1 July 1947 and 31 December 1948||64½|
|1 January 1949 and later||65|
Your income and assets are tested against minimum and maximum limits.
Under the Income test, a couple’s combined income from all sources is used and applied against the Income test formulas to determine a rate of payment.
The Income test thresholds are outlined below.
|Shade out threshold 1(per fortnight)$||Cut out threshold 2(per fortnight)$|
1. The shade out threshold is the maximum assessable income from other sources where a pensioner remains entitled to the full pension. The pension reduces by 50c for each dollar of assessable income a single person (or a couple combined) earns in excess of the shade out threshold and 25 cents in the dollar each for a couple.
2. The cut out threshold is the level of assessable income at which there is no entitlement to a pension.
Under the Assets test, a person may own a certain level of assessable assets before their pension is reduced. The value of a person’s home is an exempt asset.
The Asset test thresholds are outlined below.
|Shade out threshold 1$||Cut out threshold 2$|
1. The shade out threshold is the maximum assessable assets where a pensioner remains entitled to the full pension. The pension reduces by $1.50 per fortnight (single person or couple combined) for each $1,000 of assessable assets in excess of the shade out threshold.
2. The cut out threshold is the level of assessable assets at which there is no entitlement to a pension.
You should also note that when a person is subjected to the two tests, the test that applies for determining a rate of payment is the one that results in the lowest amount of benefit.
The current rates of pension are outlined below.
|Maximum pension rates(per fortnight)$|
In addition to the pension payment, you are entitled to a Pharmaceutical Allowance of $6.00 for a single person or $3.00 each if a member of a couple.
Please contact Centrelink or your adviser (or me) for a more detailed assessment of your eligibility for Centrelink entitlements.
Source: A Guide to Australian Government Payments, July 2012
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