Centrelink
Age Pension
If you have reached retirement age, you might be entitled to receive the Age Pension, an income support payment from the Government. You could also be entitled to other payments and benefits, including the Pensioner Concession Card, Pension Supplement or Rent Assistance.
Basic pension rates for the period 20 March 2013 to 19 September 2013 are as follows:
| Fortnightly | Annual | |
|---|---|---|
|
Single |
$808.40 |
$21,018.40 |
|
Couple combined |
$1,218.80 |
$31,688.80 |
Includes Pension Supplement and Clean Energy Supplement. The Pension Supplement helps you to meet the costs of your daily household and living expenses. For customers who are eligible, the Pension Supplement combines the GST Supplement, Utilities Allowance, Telephone Allowance and Pharmaceutical Allowance. The Clean Energy Supplement helps you to meet the costs of carbon pricing.
To qualify for the Age Pension, you must first satisfy the age and residency requirements. Visit the Centrelink website for full details.
If you are of qualifying age, Centrelink then works out how much Age Pension is payable. This depends on your income, assets and residential circumstances.
Means testing
Your Age Pension entitlement is calculated under both an Assets Test and an Income Test. The test that results in the lower rate will apply.
Assets Test
The value of various assets you own can impact your eligibility for the Age Pension. The maximum value of assets you can hold before they affect your pension for the period 20 March 2013 to 30 June 2013 are as follows:
| For full pension | Disqualifying asset limits | |
|---|---|---|
|
Homeowners Single Couple combined |
$192,500 $273,000 |
$731,500 $1,086,000 |
|
Non-homeowners Single Couple |
$332,000 $412,500 |
$871,000 $1,225,500 |
Assets worth more than the lower threshold amounts reduce your pension by $1.50 a fortnight for every $1,000 above the amounts shown in the table.
Income Test
Centrelink assesses the income from your financial investments, including term deposits, shares and managed funds, under one set of rules known as 'deeming'. The Centrelink Income Test 'deems' your financial investments to be earning a certain rate of income, no matter what they are actually earning.
The deeming thresholds and rates for the period 20 March 2013 to 30 June 2013 are as follows:
| Single | Rate | Couple |
|---|---|---|
| First $45,400 |
2.5% |
First $75,600 |
|
Over $45,400 |
4% |
Over $75,600 |
The income limits for the Pension Income Test for the period 20 March 2013 to 30 June 2013 are as follows:
| For full pension | Disqualifying income limits | |
|---|---|---|
|
Single Couple combined |
Fortnightly Annual $152.00 $3,952.00 $268.00 $6,968.00 |
Fortnightly Annual $1,768.80 $45,988.80 $2,705.60 $70,345.60 |
Income above the lower threshold reduces your rate of pension by 50 cents in the dollar.
Tip
Certain income streams such as some annuities receive more generous Income Test treatment which may help you receive a higher level of Age Pension.
Determining whether and how much you are entitled to can be complicated. Your financial adviser can help you assess your Centrelink entitlements.