1. What is the Age Pension in Australia?
The Age Pension is a government-provided income support payment designed to assist older Australians who have reached the eligible age and meet specific criteria.
2. What is the qualifying age for the Age Pension?
The qualifying age for the Age Pension depends on your date of birth. It is currently set at 66 years and will gradually increase to 67 years by July 2023.
3. How do I apply for the Age Pension?
To apply for the Age Pension, you can either visit your local Centrelink office, call the Centrelink helpline, or apply online through the Australian Government’s Services Australia website.
4. What are the residency requirements for the Age Pension?
Age Pension eligibility is subject to residency status, the income test and the asset test.
5. What are the residency requirements?
To be eligible for the Age Pension, you must meet the following residency requirements:
- 1. Living in Australia: Must be living in Australia when they claim the Age Pension.
- 2. Physically in Australia: Must have been physically present in Australia for at least two years out of the five years immediately before they claim the Age Pension.
- 3. Australian resident: Must be an Australian resident for at least ten years in total, with at least five of those years being continuous. However, certain exemptions apply for refugees and former refugees.
6. What is the income test for age pension?
The Income Test is used to determine your income from various sources, including financial assets such as superannuation. The Income Test applies if you receive the Age Pension, Carer Payment and Disability Support Pension.
The pension will reduce by 50 cents for each dollar earned over $190 for singles and over $336 for couples. For transitional rate pensioners without dependent children, the pension will reduce by 40 cents for each dollar earned over the same threshold. If your income exceeds the cut-off point during a fortnight, you will not receive any payment for that period.
The cut off points vary depending on your situation as follows:
– Single – $2,318
– Couple living together – $3,544
– Couple living apart due to ill health – $4,592
– Transitional rate pensioner – single – $2,409
– Transitional rate pensioners – couple living together – $3,916.50
– Transitional rate pensioners – couple living apart due to ill health – $4,774
7. What is the assets test for age pension?
The Asset Test is used to determine the value of your assets, including property, possessions, and debts owed. If you receive a full pension, your pension will decrease if your assets exceed the limit for your situation. These limits vary as shown below:
– Single – Homeowner: $280,000; Non-homeowner: $504,500
– A couple, combined (including those separated due to illness or one eligible partner) – Homeowner: $419,000; Non-homeowner: $643,500
If you receive a part pension, your pension will be cancelled if your assets exceed the cut off for your situation. These cut offs are as shown below:
– Single – Homeowner: $634,750; Non-homeowner: $859,250
– A couple, combined (including one eligible partner) – Homeowner: $954,000; Non-homeowner: $1,178,500
– A couple, separated due to illness, combined – Homeowner: $1,128,500; Non-homeowner: $1,353,000
From 20 March 2023, if you receive a transitional rate of pension, it will cancel when your assets exceed the cut-off point for your situation. The cut offs are:
– Single – Homeowner: $576,000; Non-homeowner: $800,500
– A couple, combined (including one eligible partner) – Homeowner: $896,500; Non-homeowner: $1,121,000
– A couple, separated due to illness, combined – Homeowner: $1,011,000; Non-homeowner: $1,235,500
Please note that if you receive rent assistance with your pension, your cut off point is higher.
If you are in severe financial hardship, you can apply for Asset Hardship provisions or the Home Equity Access Scheme if your assets mean you don’t receive the Age Pension or only receive a small amount of Age Pension.
8. Can I work while receiving the Age Pension?
Yes, you can work while receiving the Age Pension. However, there are limits to the amount you can earn before your pension payment is affected. The income limits are revised annually.9. Is the Age Pension means-tested?
Yes, the Age Pension is subject to both income and assets tests. These tests are used to assess your eligibility and determine the rate of your pension payment. The test with the lowest payment rate applies.10. Is the Age Pension taxable?
Yes, the Age Pension is considered taxable income. However, pension alone normally falls below the tax-free threshold and hence no income tax is due.11. Are there additional benefits for Age Pension recipients?
Yes, Age Pension recipients may be eligible for additional benefits and concessions, such as the Pensioner Concession Card, which provides access to various discounts on goods, services, and healthcare.12. Can I receive the Age Pension if I travel overseas?
If you’re an Age Pension recipient, you may be eligible to continue receiving your pension while overseas for a limited period. However, there are certain criteria and restrictions that apply. It’s advisable to contact Centrelink to understand the rules specific to your situation.
