$1,725.20 For Couple Homeowners After This Income Threshold In 2024: Know Eligibility & More Details

By John Babu

Published on:

$1,725.20 For Couple Homeowners After This Income Threshold In 2024

If you’re nearing retirement in Australia, the Age Pension could play a big role in securing your financial future. Did you know singles can receive up to $1,144.40 per fortnight and couples up to $1,725.20? That’s $29,754.40 and $44,855.20 annually, respectively! But these are maximum amounts, and what you actually receive depends on your income, assets, and eligibility.

Let’s dive into how the Age Pension works and how you can maximize your entitlements.

Age Pension

The Age Pension is a government-funded safety net for retirees, ensuring Australians can live comfortably after their working years. However, it’s not a flat payment for everyone. Factors like your income, assets, and relationship status determine the exact amount.

Details Singles Couples
Maximum Pension (Fortnight) $1,144.40 $1,725.20
Income Threshold $212 $372
Reduction per Dollar Over $0.50 $0.25
Homeowner Asset Threshold $301,750 $451,500
Non-Homeowner Asset Threshold $543,750 $693,500

How Is the Pension Calculated?

Two key tests—income and assets—decide how much pension you’ll receive.

Income Test

This test examines earnings from work, rental income, and investments. If your income exceeds the thresholds:

  • Singles: $212 per fortnight. Pension reduces by $0.50 for each dollar above.
  • Couples: $372 combined per fortnight. Pension reduces by $0.25 for each dollar above.

Example:
A single retiree earning $300 per fortnight from part-time work exceeds the threshold by $88. Their pension is reduced by $44 ($88 × 0.50).

Assets Test

Your assessable assets (excluding your primary home) also affect your payment. Exceeding the limits reduces your pension by $3 per fortnight for every $1,000 above the threshold.

Thresholds:

  • Single Homeowners: Assets below $301,750 for full pension.
  • Couple Homeowners: Assets below $451,500 for full pension.
  • Single Non-Homeowners: Assets below $543,750 for full pension.
  • Couple Non-Homeowners: Assets below $693,500 for full pension.

How to Maximize Your Pension

Want to boost your pension payments? Here are some actionable tips:

1. Reduce Assessable Assets

Since your home isn’t included in the assets test, consider spending on home improvements. You can also gift within allowable limits to reduce your assessable assets.

2. Choose Income Stream Products

Convert your superannuation or investments into income streams like annuities. This can reduce assessable assets and potentially increase your pension payments.

3. Time Your Income

By spacing out withdrawals from savings or investments, you may stay under income thresholds and maximize entitlements.

4. Seek Professional Advice

Financial advisers can help you navigate the complex rules and tailor strategies to suit your situation.

Eligibility Requirements

To qualify for the Age Pension, you must meet these criteria:

  1. Age: 66.5 to 67 years, depending on your birthdate.
  2. Residency: Must have lived in Australia for at least 10 years (five years continuous).
  3. Income and Assets: As discussed above.

Pension rates and thresholds can change, so stay informed through reliable sources like Services Australia or consult financial advisers to ensure you’re making the most of your entitlements.

John Babu

A seasoned tax analyst renowned for his expertise in international taxation. Purav's contributions to the tax news blog provide readers with valuable insights into the complexities of cross-border taxation and compliance

Recommend For You

Leave a Comment