New financial year brings good news for seniors

The beginning of the 2023-24 financial year on 1 July will bring changes that affect the lives of seniors, both retirees and those still in the workforce.

There are several changes to the Age Pension, including to the assets and income tests and the standardisation of the pension age, which has been slowly rising over the past decade, to 67.

You can apply for the Age Pension three months before you turn 67 – and it is a good idea to start the application process early.

Those seniors who are still employed will benefit from an increase in employer superannuation contributions from 10.5% to 11% on 1 July.

As National Seniors Australia Chief Advocate, Ian Henschke, says, “We still have 400,000 job vacancies so if you want to go back to work, work more and keep working when you reach pension age there are incentives – for example, the standard $7,800 work bonus has been lifted to $11,800 for the rest of this calendar year.”

Ian also points out that, from 1 July, part-pensioner couples could get a maximum increase of $100 a fortnight in their pension and singles will get $65 extra a fortnight if they come under the assets test.

“Anyone with less than the new assets test thresholds will get the maximum payment and some self-funded retirees close to the asset test cut-off will now be eligible for a pension.” 

Under those new asset tests, single homeowners can have $301,750 in assets (up $21,750) and single non-homeowners can have $543,000 (up $39,250) before their full pension payment is reduced.

For couples who own a home, the new asset threshold is $451,500 (up $32,500) and for non-homeowner couples it’s $693,500 (up $50,000) before their full pension is affected.

The disqualifying income threshold – the point at which you lose your pension payment – is $2,332 per fortnight for singles and $3,568 per fortnight for couples. That’s $60,632 per annum for a single person and $92,768 for a couple.

The disqualifying asset threshold is $656,500 and $898,500 for single homeowners and non-homeowners respectively, and $986,500 and $1,228,500 for couple homeowners and non-homeowners.

“Because of adjustments for inflation, the new levels have increased quite significantly,” Ian said. “This means thousands of Australians who did not qualify for the age pension before, due to their assets or income, will now be eligible and some who were getting a part pension will now get a full pension.”

The start of the new financial year will also mark the return to the standard minimum drawdown rate for superannuation. Those rates were lowered during the COVID-19 pandemic but will be restored to the previous limits.

The new arrangements are explained on the Australian Tax Office website.

Another big change on 1 July will involve rebates on energy bills. 

According to the Department of Energy, if you live in NSW, Queensland, South Australia or Tasmania, you can get $500 per eligible household.  

The Queensland government has offered additional rebates, with 2.2 million households to receive an extra $550 off their electricity bills, and a further 600,000 “vulnerable” households, including those of many pensioners, getting an additional $150, for a total of $700 in state support on top of the federal payment. 

If you live in Victoria, you can get $250 per eligible household, plus a one-off $250 direct payment through Victoria’s 2023 Power Saving Bonus Payment. 

If you live in the Northern Territory, you can get $350 per eligible household. 

If you live in Western Australia and are registered with the Electricity Concession Extension Scheme, you will get a $500 electricity credit split over two payments. All other Western Australian households can get a $400 electricity credit. 

If you live in the ACT, you can get $175 per eligible household. Your bills will also be lower owing to the ACT’s Large-scale Feed-in Tariff Scheme which will lower the average bill by $152.

From the start of the new financial year, residential aged care homes across Australia will be required to have a registered nurse on-site and on duty 24 hours a day, 7 days a week, unless granted a 12-month exemption.

Aged care sector staff, who were among the lowest paid workers in the country, will receive a 15% wage increase from 30 June.

Ian Henschke says people struggling with the cost-of-living crisis will welcome the changes to the Age Pension and other benefits.

The National Seniors Social Survey, released in March, revealed 80% of older Australians have been impacted by increasing living costs.

The number of Aussies aged over 50 who reported being “severely” impacted by cost increases was projected to rise further over the next 12 months.

“So, it's important to do your research and learn about these changes and then check what concessions are available to you with the National Seniors Concessions Calculator,” he says.

Related reading: News.com.au, Retirement Essentials, SMH, Department of Climate Change, Energy, Environment and Water