Pension changes from 1 July 2020
From 1 July 2020, the Income Free Areas and Assets Value Limits used to calculate rates of income support pensions will rise.
The amount of income (per fortnight) an income support pensioner may receive before their pension is reduced under the income test:
|
|
Single rate (fortnightly) |
Couples rate – combined (fortnightly) |
|
Service or Age Pension |
$178.00 |
$316.00 |
|
Income Support Supplement (War Widow(er)’s Pension is included in these amounts) Different limits apply if assessed under transitional rules |
$1,470.00 |
$1,984.00 |
The maximum value of assets a person can have before their pension is affected:
|
|
Single rate |
Couples rate – combined |
|
Service or Age Pension |
|
|
|
Homeowner |
$268,000 |
$401,500 |
|
Non-homeowner |
$482,500 |
$616,000 |
|
Income Support Supplement Different limits apply if assessed under transitional rules |
|
|
|
Homeowner |
$483,500 |
$679,500 |
|
Non-homeowner |
$698,000 |
$894,000 |
The deeming thresholds have increased effective from 1 July 2020. This means that the value of financial assets deemed to be earning the lower rate of 0.25 per cent has increased. The higher deeming rate of 2.25 per cent is applied to the balance of financial assets over these thresholds.
|
|
Single rate |
Couples rate – combined |
|
Deeming threshold |
$53,000 |
$88,000 |
Some payments under the Military Rehabilitation and Compensation Act 2004 (MRCA) also increased, including:
|
|
New rate (weekly) |
|
Maximum Permanent Impairment amount |
$359.85 |
|
Maximum rate of Household Services |
$509.53 |
|
Maximum rate of Attendant Care Services |
$509.53 |
|
Dependent eligible young person |
$154.08 |
A full list of the new rates is available from the DVA website in the CLIK tool under the Quick links heading. For further information, contact DVA on 133 254 or from regional Australia free call 1800 VETERAN (1800 838 372) or visit dva.gov.au.