Post by Deleted on Mar 12, 2019 6:12:53 GMT 7
Pay rise for two million Australian pensioners on the way
More than two million pensioners will be able to afford an extra coffee or a post-golf shandy over the next couple of weeks thanks to a rise in the Federal Government age pension.
Single retirees on the full pension are to receive a $9.90 fortnightly increase in their total Centrelink payment to $926.90, while couples will enjoy a $14.80 a fortnight pension increase to $1396.20.
And in some good news for retirees staring down the barrel of losing franking credit refunds under Labor, the higher basic pensions are also driving higher the asset thresholds below which retirees may qualify for a minimum age pension.
A single homeowner with up to $567,250 of assessable assets will qualify for a minimum singles age pension of $50.80 when the new pension rates take effect on March 20.
This is up from the current $564,000 threshold up to which a single retiree stands to receive the current $50.40 minimum.
The maximum assessable assets that a couple have before losing access to the minimum pension will rise from $848,000 to $853,000 for homeowner couples. The minimum pension for a couple will rise from a total of $76 fortnightly to $76.60.
Author and financial adviser Nick Bruining reveals ways to boost your age pension.
1:58 | The West Australian.
The great majority of pensioners will receive the full $9.90 singles increase and the full $14.80 increase due to there being no changes in the asset values or income levels at which means testing starts to be applied.
Smaller increases will be enjoyed by people whose asset or income levels are at a level where their fortnightly pension rate has been tapered down to the minimum single or couples pension.
The Department of Social Services says the payment will take effect from the pension indexation date of March 20.
The timing and scale that individual pension and allowance recipients receive pay rises will depend on where their payment date fits into the indexation date.
A department spokesman said not all of a pensioner’s payment after March 20 would necessarily be at the new rate.
“This is because their fortnightly payment covers periods under both the existing rate and the new, increased rate,” the spokesman said.
But the subsequent payment after March 20 will include the full amount of the increase.
The inflation-based increases in the base rate of pensions and the cost-of-living supplement take place each March and September.
Separately, the department reviews the key starting thresholds for Centrelink income and asset testing.
One of Australia’s most respected financial commentators, Nick has good news for retirees and people who are about to stop work - you don't need $1 million to retire well.
0:15 | The West Australian
The changes taking effect at the start of the financial year generally raise the amount of assets and income someone can have before means testing begins gnawing into their pension entitlements
Like the March and September changes in base payment rates, the higher starting thresholds put in place at the beginning of the new financial year also raise the asset valuations at which people lose access to the age pension.
Therefore, all sets of changes should be a reminder to anyone just above the upper asset threshold to check with the Centrelink website to see if they now qualify for the pension and the Pensioner Concession Card.
The total base pension rate for a couple rises next week from $1258 to $1271.80, while the couple’s full cost-of-living supplement rises from $102.20 to $103.20. The energy supplement continues to be a flat $21.20 for couples.
For singles, the base pension rate rises from $834.40 to $843.60 and the full cost-of-living supplement rises from $67.80 to $80.50. The energy supplement stays at $14.10.
Pensioners on the minimum pension have their entitlements built around a combination of the fixed energy supplement and a reduced cost-of-living supplement.
The minimum single pension recipient is entitled to the $14.10 energy supplement and, from March 20, the $36.70 minimum cost of living supplement for singles.
The new $76.60 minimum payment for a pensioner couple will be comprised of $21.20 in energy supplements and $56.40 of living cost supplements.
The disqualifying assets limit for a single person who does not own their home will rise from $771,000 to $774,250 on March 20.
A non-homeowner couple will be able to have $1.06 million in assets and still get the pension from next Wednesday, up from the current $1.055 million. There are higher cut-off rates for couples who are separated due to illness.
thewest.com.au/business/your-money/pay-rise-for-two-million-australian-pensioners-on-the-way-ng-b881127027z?fbclid=IwAR0mQ72fcXESepK11hAl5jCg4sNdhC7cTRnQF3UplD9teuEfSrl9tlElcFs
More than two million pensioners will be able to afford an extra coffee or a post-golf shandy over the next couple of weeks thanks to a rise in the Federal Government age pension.
Single retirees on the full pension are to receive a $9.90 fortnightly increase in their total Centrelink payment to $926.90, while couples will enjoy a $14.80 a fortnight pension increase to $1396.20.
And in some good news for retirees staring down the barrel of losing franking credit refunds under Labor, the higher basic pensions are also driving higher the asset thresholds below which retirees may qualify for a minimum age pension.
A single homeowner with up to $567,250 of assessable assets will qualify for a minimum singles age pension of $50.80 when the new pension rates take effect on March 20.
This is up from the current $564,000 threshold up to which a single retiree stands to receive the current $50.40 minimum.
The maximum assessable assets that a couple have before losing access to the minimum pension will rise from $848,000 to $853,000 for homeowner couples. The minimum pension for a couple will rise from a total of $76 fortnightly to $76.60.
Author and financial adviser Nick Bruining reveals ways to boost your age pension.
1:58 | The West Australian.
The great majority of pensioners will receive the full $9.90 singles increase and the full $14.80 increase due to there being no changes in the asset values or income levels at which means testing starts to be applied.
Smaller increases will be enjoyed by people whose asset or income levels are at a level where their fortnightly pension rate has been tapered down to the minimum single or couples pension.
The Department of Social Services says the payment will take effect from the pension indexation date of March 20.
The timing and scale that individual pension and allowance recipients receive pay rises will depend on where their payment date fits into the indexation date.
A department spokesman said not all of a pensioner’s payment after March 20 would necessarily be at the new rate.
“This is because their fortnightly payment covers periods under both the existing rate and the new, increased rate,” the spokesman said.
But the subsequent payment after March 20 will include the full amount of the increase.
The inflation-based increases in the base rate of pensions and the cost-of-living supplement take place each March and September.
Separately, the department reviews the key starting thresholds for Centrelink income and asset testing.
One of Australia’s most respected financial commentators, Nick has good news for retirees and people who are about to stop work - you don't need $1 million to retire well.
0:15 | The West Australian
The changes taking effect at the start of the financial year generally raise the amount of assets and income someone can have before means testing begins gnawing into their pension entitlements
Like the March and September changes in base payment rates, the higher starting thresholds put in place at the beginning of the new financial year also raise the asset valuations at which people lose access to the age pension.
Therefore, all sets of changes should be a reminder to anyone just above the upper asset threshold to check with the Centrelink website to see if they now qualify for the pension and the Pensioner Concession Card.
The total base pension rate for a couple rises next week from $1258 to $1271.80, while the couple’s full cost-of-living supplement rises from $102.20 to $103.20. The energy supplement continues to be a flat $21.20 for couples.
For singles, the base pension rate rises from $834.40 to $843.60 and the full cost-of-living supplement rises from $67.80 to $80.50. The energy supplement stays at $14.10.
Pensioners on the minimum pension have their entitlements built around a combination of the fixed energy supplement and a reduced cost-of-living supplement.
The minimum single pension recipient is entitled to the $14.10 energy supplement and, from March 20, the $36.70 minimum cost of living supplement for singles.
The new $76.60 minimum payment for a pensioner couple will be comprised of $21.20 in energy supplements and $56.40 of living cost supplements.
The disqualifying assets limit for a single person who does not own their home will rise from $771,000 to $774,250 on March 20.
A non-homeowner couple will be able to have $1.06 million in assets and still get the pension from next Wednesday, up from the current $1.055 million. There are higher cut-off rates for couples who are separated due to illness.
thewest.com.au/business/your-money/pay-rise-for-two-million-australian-pensioners-on-the-way-ng-b881127027z?fbclid=IwAR0mQ72fcXESepK11hAl5jCg4sNdhC7cTRnQF3UplD9teuEfSrl9tlElcFs
