As of August 2024, significant updates to the Centrelink Age Pension could impact many Australian seniors.
These changes include adjustments to income and asset limits, allowing retirees to potentially receive higher payments or qualify for the Age Pension when they previously might not have.
For couples, this means the opportunity to earn up to $372 every two weeks without impacting their pension.
$372 Per Fortnight for Couples in Australia
The Age Pension is a critical source of income for many Australians, even as superannuation becomes more widespread. With nearly 39% of the population depending on it, and 24% receiving a partial pension, these updates are significant.
The changes aim to provide older Australians with more financial flexibility, especially those who have additional income sources or substantial assets.
Eligibility
To qualify for the Age Pension, you must meet specific criteria:
- Age Requirement: You must be at least 67 years old.
- Income Limits: For couples, the income limit has increased to $372 per fortnight (previously $360). This means that couples can earn up to this amount every two weeks without their pension being affected. If your income exceeds this limit, your pension will be reduced by 50 cents for every extra dollar earned.
- Asset Limits: You must also meet Centrelink’s updated asset limits, which allow you to own more assets while still qualifying for the Age Pension. This increase helps ensure that retirees can maintain a reasonable standard of living without losing their pension benefits.
How to Apply
Applying for the Age Pension can be done through Centrelink in one of two ways:
- Online: Use your MyGov account to apply online. This method is straightforward and allows you to track the status of your application.
- In-Person: Visit a Centrelink Service Centre to complete your application in person. This option might be more suitable if you prefer face-to-face assistance or need help with the application process.
Important Steps to Apply:
- Start Early: You can begin your application up to 13 weeks before you reach the required age.
- Prepare Your Documents: Gather necessary documents, including proof of age, identity, tax file number, bank account details, and any information regarding income and assets.
- Additional Documentation: If you’ve lived outside of Australia, you must provide proof of your Australian residence. Couples must also provide details about their partner.
Payment Dates
Age Pension payments are made every two weeks, with specific dates varying slightly each year. Generally, payments are scheduled as follows:
- First Payment: Around the first Monday or Tuesday of the month.
- Second Payment: Around the third Monday or Tuesday of the month.
If a payment date falls on a public holiday, payments are usually made on the last business day before the holiday.
Key Updates
In addition to the updated thresholds for income and assets, other related changes include superannuation updates. As of July 2024, the employer contribution rate increased from 11% to 11.5%, meaning more money will be funneled into retirement savings.
The pre-tax contribution cap has also been raised to $30,000 (from $27,500), and after-tax contributions are now capped at $120,000 (from $110,000).
These updates are designed to improve the financial security of Australian retirees, making it easier to maintain a comfortable lifestyle during retirement.
FAQs
Who qualifies for the $372 per fortnight payment?
Couples aged 67+ who meet Centrelink’s income and asset limits.
How do I apply for the Age Pension?
You can apply online via MyGov or in person at a Centrelink Service Centre.
What documents do I need to apply?
You’ll need proof of age, identity, tax file number, bank details, and information about income and assets.
When are Age Pension payments made?
Payments are made every two weeks, typically on the first and third Mondays or Tuesdays of the month.
How does earning over the income limit affect my pension?
For every dollar over the limit, your pension is reduced by 50 cents.
