More Pension for More People

The assets test for Age Pension and other pension payments including Disability Support Pension and Carer Payment will become much more generous from 20 September 2007, as part of the Australian Government’s Plan to Simplify and Streamline Superannuation.

Minister for Families, Community Services and Indigenous Affairs, Mal Brough and Minister for Human Services, Senator Chris Ellison, today said hundreds of thousands of people would receive more pension or become eligible for a pension for the first time.

"From September 20, pensions will be reduced by $1.50 each fortnight for every $1000 of assets above the allowable asset limit for full pension, instead of the current $3 for the same amount of assets," Mr Brough said.

Senator Ellison urged those who may become eligible for a pension as a consequence of the change to lodge their application from later this month.

"People who think they may become eligible for a pension don’t have to wait until 20 September to claim, they can lodge a claim from 21 June, to begin receiving the payments from 20 September," Senator Ellison said.

"People already receiving a part pension under the assets test will also automatically receive a pension increase from 20 September."

Based on current pension rates, the assets limits to receive a pension from 20 September will be:

• single homeowners: $520,750 (up from $343,750 from July 1)
• single non-homeowners: $641,750 (up from $464,750from July 1)
• couple homeowners: $825,500 (up from $531,000 from July 1)
• couple non-homeowners: $946,500 (up from $652,000 from July 1).

"These more generous assets test rules are a commitment by the Howard Government to increase incentives for people to save for retirement."

For more information about the assets test changes and how to make a claim you can visit your local Centrelink Customer Service Centre, go to the Centrelink website or call Centrelink on 13 2300