Australia Age Pension Increases Explained in Depth September 2024
The upcoming September 2024 Age Pension increase will bring higher payments for many Australians. This is an important update, especially for pensioners who rely on these payments to cover everyday expenses. The increase will take effect on 20 September 2024, and it’s bigger than the one from March this year. Pensioners will see a boost in their income, and in this guide, we’ll break down everything you need to know about these changes, including the increases for singles, couples, income thresholds, asset limits, and other benefits.
What to Expect from the 20 September 2024 Age Pension Increase
Starting 20 September 2024, the Federal Government will implement a twice-yearly increase in Age Pension payments. This increase applies to those receiving the Age Pension, Disability Support Pension, and Carer Payments. For singles, the increase will be $28.10 per fortnight, while couples will see a combined increase of $42.40 per fortnight. This is a noticeable improvement compared to the smaller increase from March, which was only $19.60 for singles and $29.40 for couples. The new rates will also include increases to pension supplements, which are often not guaranteed. Below is a detailed breakdown of the new payment amounts:
| Payment Type | Current (Single) | Current (Couple Combined) | 20 Sept 2024 (Single) | 20 Sept 2024 (Couple Combined) |
|---|---|---|---|---|
| Maximum Basic Rate | $1020.60 | $1538.60 | $1047.10 | $1578.60 |
| Maximum Pension Supplement | $81.60 | $123.00 | $83.20 | $125.40 |
| Energy Supplement | $14.10 | $21.20 | $14.10 | $21.20 |
| Total Payment | $1116.30 | $1682.80 | $1144.40 | $1725.20 |
These increases reflect the government’s effort to adjust pensions in line with inflation and the rising cost of living. Pensioners can expect the changes to appear in their payments from 20 September 2024.
Income and Asset Thresholds Are Also Rising
In addition to the Age Pension payment increases, the income and asset thresholds that determine eligibility for the Age Pension are also going up. This means that some individuals who previously didn’t qualify for the pension might now be eligible for a part pension and its accompanying supplements. It’s a good idea to check your eligibility using the free Age Pension calculator, which will be updated with the new thresholds before 20 September.
Here’s a closer look at the updated income and asset thresholds:
Pension Disqualifying Income Limits (per fortnight)
| Family Situation | Previous Amount | 20 Sept 2024 Amount | Increase |
|---|---|---|---|
| Single | $2,444.60 | $2,500.80 | $56.20 |
| Couple (combined) | $3,737.60 | $3,822.40 | $84.80 |
| Illness-separated (couple combined) | $4,837.20 | $4,949.60 | $112.40 |
Pension Disqualifying Asset Limits
| Family Situation | Previous Amount | 20 Sept 2024 Amount | Increase |
|---|---|---|---|
| Single, homeowner | $686,250 | $695,500 | $9,250 |
| Single, non-homeowner | $938,250 | $947,500 | $9,250 |
| Couple (combined), homeowner | $1,031,000 | $1,045,500 | $14,500 |
| Couple (combined), non-homeowner | $1,283,000 | $1,297,500 | $14,500 |
These new limits mean that more people may now qualify for some level of pension support, particularly those whose income or assets were previously just over the limit.
Additional Payments and Benefits Increasing
Aside from the Age Pension, other payments like the Commonwealth Seniors Health Card (CSHC) and rent assistance are also getting a boost. This can help seniors who rely on additional support for healthcare and housing. The income thresholds for the CSHC have been updated as follows:
Commonwealth Seniors Health Cards – Taxable Income Limits
| Family Situation | Previous Amount | 20 Sept 2024 Amount | Increase |
|---|---|---|---|
| Single* | $95,400 | $99,025 | $3,625 pa |
| Partnered (each) | $76,320 | $79,220 | $2,900 pa |
| Couple (combined) | $152,640 | $158,440 | $5,800 pa |
Good News for Renters – Rental Assistance Increase
If you receive Commonwealth Rental Assistance (CRA), you’ll also see an increase in your payments. This is especially helpful for pensioners who struggle with rising rent costs. Here’s a breakdown of the new rent assistance rates starting 20 September:
Rent Assistance (for payments under the Social Security Act)
| Family Situation | Previous Amount | 20 Sept 2024 Amount | Increase |
|---|---|---|---|
| Single | $188.20 | $211.20 | $23.00 |
| Single, sharer | $125.47 | $140.80 | $15.33 |
| Couple | $177.20 | $199.00 | $21.80 |
| Partnered, illness-separated | $188.20 | $211.20 | $23.00 |
| Partnered, temporarily separated | $177.20 | $199.00 | $21.80 |
The thresholds for rent have also been updated to reflect the current cost of living.
Rent Payment Thresholds and Ceilings
| Family Situation | Previous Rent Ceiling | 20 Sept 2024 Rent Ceiling | Increase |
|---|---|---|---|
| Single | $396.94 | $430.60 | $33.66 |
| Single, sharer | $313.29 | $336.74 | $23.45 |
| Couple | $472.87 | $506.74 | $33.87 |
| Partnered, illness-separated | $396.94 | $430.60 | $33.66 |
Need Assistance with Your Pension?
If these changes raise questions for you, or you’re unsure about how they affect your situation, speaking to an Age Pension Specialist might help. A consultation can clarify how these increases impact your entitlements, help you navigate the Centrelink system, and provide guidance on any changes you may want to make to maximize your benefits. A 30-minute consultation costs $155 upfront and can provide peace of mind and useful advice on your Centrelink situation.
Does the Age Pension Increase Help You?
With singles receiving an extra $14 per week and couples getting an additional $21 combined, these increases are more generous than what we’ve seen recently. Will this help your household budget? These changes aim to offer better financial support, but how much they improve your personal situation depends on your current financial circumstances.
