The first quarter of the 2023/24 financial year has flown by, with a range of legislative changes that are now live. Here’s what you need to know.
Centrelink changes
Who’s it for: Retirees
Centrelink pension payment increase
As a part of the twice-yearly pension updates, the September announcement has seen the Government Age Pension increase by $32.70 per fortnight for singles, and $24.70 per person per fortnight for couples:
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| March 2023 Age Pension rate | New Age Pension rate (From 20 September 2023) | |
|---|---|---|
| Singles | $1,064 / fortnight | $1,096 / fortnight | $28,514 / year |
| Couples | $1,604 / fortnight | $1,653 / fortnight | $42,988 / year |
For the next age pension review in March 2024, another increase is likely (but not definite) with the pension indexed to the Consumer Price Index (measuring inflation).
Government Age Pension test thresholds increase
Centrelink payment rates, income and assets test thresholds were indexed in September. If you have previously just missed out on the age pension because of the income/assets test, you could now be eligible.
The following tables show how much you can have in income or assets before you’re no longer eligible to a pension. Remember you must not exceed either the income or assets test.
Income and assets thresholds
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| You’re entitled to the full age pension when your income is equal to or less than: | You’re not entitled to a pension when your income assessed by Centrelink exceeds: | |
|---|---|---|
| Singles | $204 / fortnight |$5,304 / year | $2,397 / fortnight | $62,332 / year |
| Couples | $360 / fortnight | $9,360 / year | $3,666 / fortnight | $95,336 / year |
*The pension is reduced by $0.50 for every dollar when your income exceeds the figures above – and doesn’t include the work bonus.
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| You’re entitled to the full age pension when your assets are equal to or less than: | You’re not entitled to the age pension when your assets exceed: | |
|---|---|---|
| Singles | Home owner: $301,750 | Non-home owner: $543,750 | Home owner: $667,500 | Non-home owner: $909,500 |
| Couples | Home owner: $451,500 | Non-home owner: $693,500 | Home owner: $1,003,000 | Non-home owner: $1,245,000 |
*The pension reduces by $3 for every $1,000 over the above figures.
Age pension eligibility
If you were born before 1 January 1957 (aged 66.5 or older at 30 June 2023), you’re now eligible for the age pension.
If you were born on or after 1 July 1957, access to the age pension comes at 67. The earliest you can access the age pension is on 1 January 2024.
Carry forward concessional contributions
Who’s it for: Pre-retirees
If you have a total super balance of less than $500,000 as at 30 June 2023, the 2024 financial year is the last year that any unused concessional contributions from 2019 financial year can be carried forward. It’s also the first year that you can put in six years’ worth of concessional contributions in one go, if you haven’t contributed since 1 July 2018.
This could work in your favour if you retired before 1 July 2018 and have an asset with a large unrealised capital gain. You could now sell in the current year and get a tax deduction of $157, 500 if it’s a concessional contribution. If you are aged 67-74 or over at the time of making the contribution you will need to meet the work test (that is, working 40 hours in 30 consecutive days) in order to claim the contribution as a tax deduction.
Disclaimer
This is general information only and does not take into account your specific objectives, financial situation or needs. Seek professional financial advice, consider your own circumstances and read our Financial Services Guide, any relevant product disclosure statement & Target Market Determination, before making a decision. Call us or visit our website for a copy.
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