Australian age pension

Regular changes

A number of changes affecting the age pension occur either annually or more frequently. These changes include:

• The government age pension usually increases in March and again in September
• Thresholds for income and assets test are indexed in March, July and September
• Super income stream minimum drawdowns are reviewed every July
• Deeming rates and thresholds are reviewed every July

Depending on economic circumstances, adjustments may also be made at other times.

Age pension rate changes

Each year, the Commonwealth Government reviews the age pension rates for those who have reached retirement age.

The current maximum fortnightly payments can be calculated below:

Increase to working limits for pensioners

Pensioners, including age pensioners, can earn up to $300 per fortnight without impacting on their pension entitlement; this is called the Work Bonus. Unused part of the fortnightly work bonus can accumulate in to ‘Work Bank’ to a maximum of $11,800. Each new person on the age pension commences with a ‘Work Bank’ allocation of $4,000. This change was made to encourage older Australians to work a bit more.

The work test for older Australians

If you are under 75 years of age during the financial year you can make non-concessional or salary sacrifice contributions, provided your super balance is less than $2 million in July of that financial year. The work test continues to apply if you wish to claim personal super contribution deductions.

If you’d like more information about how these changes might affect you, talk to your fund.