Pension Payments are Going Up!
Centrelink benefits have gone up this week. Commonwealth payments are adjusted twice a year – once in Mid-March and again in Mid-September. Some benefits are pegged to the CPI, while others (including pensions) also take into account rises in real wages. In recent years, inflation and/or wage growth have generally been quite low and so the biannual changes did not have much effect. But, as you know, inflation has increased lately. This means Government pensions are being adjusted quite substantially.
The changes to Age and Disability payments equate to an increase of around 3.2% for the basic rate of payment. Remember, this adjustment happens twice a year, so this 3.2% increase is not an annual one. The previous six-month increase, in March of this year, was for 3.65%. So, taken together, we see that pension payments have increased by just under 7% for the twelve months to September.
The new amounts payable, and the increase they represent, are shown in this table:
| Per fortnight | 20 Sept 2023 Single | Increase | 20 Sept 2023 Couple combined | Increase |
| Maximum basic rate | $1002.50 | $31 | $1511.40 | $46.80 |
| Maximum Pension supplement | $80.10 | $1.70 | $120.80 | $2.60 |
| Energy Supplement | $14.10 | 0 | $21.20 | 0 |
| Total | $1096.70 | $32.70 | $1653.40 | $49.40 |
The actual pension is not always the only benefit that aged or disabled people receive. For pensioners who are renting, rent assistance is also increasing. Rent assistance is increasing by more than the inflation amount. In line with announcements made in the May Budget. The new amounts for rent assistance are shown in this table:
| Maximum Payment | Current Amount | 20 Sept 2023 Amount | Increases |
| Single per fortnight | $157.20 | $184.80 | $27.60 |
| Couple per fortnight | $104.80 | $123.20 | $18.40 |
| Rent Threshold | |||
| Single per fortnight | $140.40 | $143.40 | $3.00 |
| Couple per fortnight | $227.40 | $232.40 | $5.00 |
| Rent Ceiling | |||
| Single per fortnight | $350.00 | $389.80 | $39.80 |
| Couple per fortnight | $424.74 | $464.40 | $39.66 |
Assets Test Thresholds are also Changing.
The thresholds for the Commonwealth assets test are also increasing. The new thresholds for getting a full aged or disability pension are:
| Your situation | Homeowner | Non-homeowner |
| Single | $301,750 | $543,750 |
| A couple, combined | $451,500 | $693,500 |
| A couple, separated due to illness, combined | $451,500 | $693,500 |
| A couple, one partner eligible, combined | $451,500 | $693,500 |
Remember, homeowners do not need to count their home as an asset for these purposes.
Pensioners whose assets are above these limits will have their payments reduced in line with how far above the threshold those assets are. The following table shows the asset limits at which the pension is no longer payable at all:
| Your situation | Homeowner | Non-homeowner |
| Single | $667,500 | $909,500 |
| A couple, combined | $1,003,000 | $1,245,000 |
| A couple, separated due to illness, combined | $1,183,000 | $1,425,000 |
| A couple, one partner eligible, combined | $1,003,000 | $1,245,000 |
