Q: I have read in a local newspaper that Age Pension rates have been cut. I recently moved from New South Wales to Queensland. I am anxious to know if the Age Pension cuts are for ALL Australians. Can you help?
A: Before I answer your question, I need to clarify the six-monthly increase in the Age Pension rates, and the application of the Age Pension income and assets test.
The Age Pension is indexed in March and September of each year and the Age Pension rates have not been cut (see SuperGuide article Latest Age Pension rates (since September 2018)) .
The Age Pension assets test however, which is one of the tests to determine your eligibility for the Age Pension, is now much harsher, which means more than 330,000 Australians lost Age Pension entitlements from 1 January 2017 (see SuperGuide article Age Pension: 300,000 Australians lost entitlements on 1 January 2017).
Any increases in the Age Pension are the same regardless of where you live in Australia. You can read about the Age Pension increases in the SuperGuide article Latest Age Pension rates (since September 2018) .
Depending on where an individual lives, they may be eligible for a Remote Area Allowance. If you live in a ‘Remote Area’ then Centrelink should notify you of this fact. I suggest you check the Department of Human Services website page on this topic for more information.
Note: If you live outside Australia, and you are claiming the Age Pension, then you can expect a different rate. For more information about the Age Pension and living outside Australia, see the second half of this SuperGuide article Australian Age Pension: Am I eligible and how do I apply?
Age Pension rates increase every six months and SuperGuide publishes the new rates each time they are announced. Age Pension thresholds for eligibility for a PART Age Pension change three times year (March, July and September). The FULL Age Pension rate thresholds for Age Pension income and assets tests are adjusted every 12 months, effective from July each year. We will also publish these changes on this website.
Note: We receive lots of emails from readers about Age Pension entitlements, although SuperGuide is not primarily an Age Pension site. This interest is understandable considering that currently 80% of all retirees receive a part or full Age Pension. For more information on the Age Pension rules see the following SuperGuide articles:
- Age Pension changes: More Australians entitled to payments since September 2018
- Age Pension: 300,000 Australians lost entitlements on 1 January 2017
- Age Pension: Income test thresholds applicable since September 2018
- Australian Age Pension: Am I eligible and how do I apply?
- Age Pension: Assets test thresholds applicable since September 2018
- Age Pension income test: Deeming rates and deeming thresholds
- Age Pension age increasing to 67 years (not 70 years)
- Income test changes (January 2015) mean less Age Pension forever
- Age Pension income test change hits funded defined benefit pensions
- Age Pension: Does my superannuation lump sum count for income test?
- Age Pension: Is my super benefit counted towards the assets test, or income test?