March 2024 Update for Age Pensions
Age Pension Rates from 20 March 2024
The maximum age pension rates from 20 March 2024 will be
- Single age pension rate: $1,116.30 per fortnight (an increase of $19.60 per fortnight)
- Couples age pension are: $1,682.80 (combined) per fortnight (an increase of $29.40 per fortnight for the combined rate)
These rates will apply from 20 March 2024 until 19 September 2024. Age Pension rates are indexed each 20 March and 20 September.
The pension amount actually paid will be determined after separately applying the income means test and the asset means tests.
Income Free Area
The income free area (the amount of income which an age pension recipient can receive per fortnight before the income reduces the age pension entitlement) will be increased with effect from 1 July 2024.
The current income fee areas remain (until 30 June 2024) as
- Single age pension: $204 per fortnight
- Pensioner couple: $360 per fortnight
The new income free area amounts apply for 2024/25 financial year have yet to be announced.
Deeming Rate for Financial Investments (including superannuation balances)
The deeming rates and threshold (the dollar amount at which the lower deeming rate of 0.25% ceases to apply and the higher deeming rate of 2.25% applies) for 2023/24 financial year remain as:
- Single age pension: $60,400 (no change)
- Pensioner couple: $100,200 (no change)
The deeming rates remain as 0.25% or 2.25%. These rates will continue to apply to the 2023/24 financial year.
On 1 July 2022, the Commonwealth Government announced that the deeming rates for 2022/23 and 2023/24 would be “frozen”. Consequently, any change in the deeming rates will only apply from 1 July 2024 (which given current interest rate levels) will most likely be increased.
The deeming rates are not indexed but are adjusted from time to time at the discretion of the relevant Commonwealth Minister.
Assets Test thresholds – for 20 March 2024 to 30 July 2024
The assets free area for the maximum age pension payment (the amount of counted assets which an age pension recipient can have before the assets reduce the age pension entitlement) has been increased as follows:
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The assets free area for the maximum age pension payment |
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Homeowners |
Single pensioner: $301,750 |
No change: this threshold is indexed each 1 July |
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Pensioner couple: $451,500 |
No change: this threshold is indexed each 1 July |
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Non-Homeowners |
Single pensioner: $543,750 |
No change: this threshold is indexed each 1 July |
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Pensioner couple: $693,500 |
No change: this threshold is indexed each 1 July |
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The asset test threshold cut off for a part pension is:
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The assets test threshold cut off for a part pension |
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Homeowners |
Single pensioner: $674,000 |
Increased by $6,500 due to the increase in the maximum age pension rate- single rate |
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Pensioner couple: $1,012,500 |
Increased by $9,500 due to the increase in the maximum age pension rate- combined rate |
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Non-Homeowners |
Single pensioner: $916,000 |
Increased by $6,500 due to the increase in the maximum age pension rate- single rate |
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Pensioner couple: $1,254,500 |
Increased by $9,500 due to the increase in the maximum age pension rate- combined rate |
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Final Points
The income free area (income means test) and the assets free area (assets means test) are changed each 1 July. The dollar thresholds for these areas have not, as yet, been announced.
The article does not apply to transitional age pension entitlements (ie an age pension entitlement which arose before 20 September 2009).
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