Pension changes confirmed… Here’s what you need to know 188



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Today Scott Morrison, Minister for Social Services has officially confirmed that changes to the age pension that will be outlined in Tuesday night’s Federal Budget. After months of speculation and concern around making the lives of older Australians more difficult, the confirmation from Mr Morrison is actually some very welcome news.

Not everyone is a winner, but not everyone is a loser either. In fact, the majority of pensioners will not lose their pension nor face cuts and a large selection of pensioners will actually see their pension increase. In some very good news, indexation changes will NOT be going ahead after the government floated the idea that increases could soon be in line with inflation instead of the average male weekly earnings.

The key changes to the pension are:

  • The asset tests are tightened. The assets-free threshold increased (to qualify for full pension) from $202,000 to $250,000 for single home owners and from $286,500 to $375,000 for couple home owners.
  • Asset taper rates are changed from $1.50 to $3 per fortnight.
  • The threshold for pensioners who do not own their home will increase to $200,000.
  • The maximum value of assets to quality for a part pension will reduce. The part pension will not be available to around 80,000 people after they reduce the asset threshold (excluding home ownership) from $1.15 million to $820,000 for couples and from $775,000 to $550,000 for singles.
  • Those who qualify for the part-pension under the new rules with “modest” assets will receive a small increase to the pension.
  • Pension increases will remain aligned with indexation and not inflation.

Mr Morrison said the changes, to come into effect in 2017, would see more than 170,000 pensioners receive a boost of about $30 a fortnight and save the budget about $3 billion over the budget period.

“The Government is seeking to ensure fairer access to a more sustainable pension. These are the only changes the Government is putting forward for the pension,” he said.

“By reducing eligibility to the pension for those with more assets, they will become fully self-funded retirees,”

“This means, though, we must retain the incentives through the tax system for superannuation. The Government does not support Labor’s proposal to tax superannuants more on the income they have generated for their retirement”.


So tell us, do you welcome these changes? Are you happy with this approach? Do you consider this a good step in the right direction after last year’s budget fiasco? 

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  1. HA HA 2017 A lot will be gone by then

    5 REPLY
    • exactly many will be going around and round the world trying to get rid of money but from my perspective I am just grateful they are leaving poorer pensioners alone

    • Why is this not going to start until 2017. We need it now!!!!!!!
      I want to be able to make the most of my $30 while I can still kick up my heels.

    • True there will be a lot gone by then but there will be just as many coming through to replace them.

  2. Why does it take so long to come into effect? If you are getting a pay rise it is the next pay period. Two years?????

    2 REPLY
  3. Seems like they may be hoping a few of us will die off before Jan 2017 start date. Make it more affordable!

    1 REPLY
    • How did you read that into the statement?

  4. Gee I hope I will still be here in 2017 so I can have a big splurge with the $30

    13 REPLY
    • Yay for that $30 a fortnight and yes fran we will be able to really kick up our heels with that much money

    • How about being grateful for what is given.?turn it down if you don’t want it.

      2 REPLY
      • Already turned a part pension down, Christine – just feel sorry for those who rely on it! I prefer to stay under the CentreLink radar.

        2 REPLY
        • Christine we are the only country in the world who means tests their aged pensioners. I’m sure everyone is grateful for their pitiful pension but let’s face it no-one can live on it. Why don’t the politicians try to live on less? And waiting two years for a $15/week rise is a long time when it’s needed now. And no I’m not eligible for the full pension and I’m sure those who are have worked just as hard as you and I.

          1 REPLY
          • If you all read the artical properly only a few will get the thirty dollars. The majority of Pensioners will get nothing.

        • Ally. It really sounds like a guilty conscience when you say you prefer to stay behind the Centrelink Radar???

      • I am not a pensioner but I respect those who do get a pension. It is not a handout but a well and truly earned payment, payed for over the years with blood sweat and tears these people moulded our country and I get very angry when others treat it as charity. I have seen people turning off their heating etc in the middle of winter to avoid costly power bills. It seems a crime to some that you grow old and the body won’t allow you to do what you used to, but pensioners are valuable people and believe me they could never be paid their true worth!

    • thanks sweetness..I don’t care because these people are not having a good run with interest rates so low..I am not greedy I just need enough to survive and pay the rent and bills..I never asked for more

    • I agree Christine, perhaps wait for the budget details, I think the $30 will be for some part pensioners. The asset limits will be changed in some cases.

    • Don’t berate “dole bludgers” when you have exactly the same mentality……expecting the government to support you !

  5. We have been dealing with Centrelink for 3 months now to get even a part pension! Every time we provide the information they ask for, they then ask for something else. So for 3 months, we have had no income. We do own an investment property, but the rent from that only covers the mortgage on our house. People renting get rent assistance, but there is no consideration given to people who are still paying a mortgage, seems unfair to me!

    1 REPLY
    • Once you get your part Pension it will be back dated to the time you applied.
      I know it takes so long , but you must remember they got rid of a load of staff when they got in.

  6. So does this work for politicians as well. About time those greedy bastards lived like everyone else

    8 REPLY
    • Mr Morrison said this morning it was for politicians as well, that everybody will be treated the same.. Can someone please tell me why it takes so long? I am just curious.

      1 REPLY
      • It give those that are affected time to get a family trust and put all their assets in.
        That way they all their assets are part of their families.
        Which means they will qualify for the full pension.
        Those with money always know away around these things it just takes time to set up.
        More smoke and mirrors from this mob.

    • It wouldn’t make a drop in their bucket load of pension!!!

  7. Yep you do the right thing then the powers that be stuff it got you

    1 REPLY
    • Yep. Joe. Drop the interest rate to 2% and cut out our part pension at the same time. If you had no assets other than an empty house, (no car or furniture) the whole amount invested my maths says 2% on 850,000 earns $17,000 per year. What couple can live on $17,000 per year.

  8. I am going to be very honest here, I have worried and stressed about how I was going to survive, everything is going up and nothing ever goes down, I don’t have a husband to rely on, I am single..I am just grateful at this stage of the game we are not going to receive cuts to the CPI rise. Wealthy people only want the pension for the concession card, they can LIVE better than us all without the pension

    11 REPLY
    • Libbi, I am guessing over half the pension population is worried about what will happen to us in the future. Me? I worry about everything!!!

    • I wish I could be on some committee or something to the government, all government to represent us. Maybe we need to start one.

    • I am past losing sleep Libbi, it does not resolve te issue and leaves tou with a headache. Now I do what I can and leave ot in God’s hands. Have faith in the affirmation …. If He brings you to it , He will get you through it. …..It is working for me so far. <3 Mind you, I wouldn't say no to a wee bit more.

    • I think ladies everyone stresses out when you are surviving on a pension. Everyday there is a new hit from the government. Don’t get me wrong I am extremely grateful to be getting a pension. Everyone has their own circumstances and reasons why we need to get the pension so I guess with that comes stress. I just wish they would leave us alone and as people have said, hope we last until 2017 to get that $30. Anything could happen before then. Keep smiling!!!

    • according to starts at 60 it is only part pensioners who get the rise.. not all of us and it is after the next election..don’t hold your breath

    • If we get a new govt after the election, it will all go out of the window anyway- do something to make us believe in you – still waiting for that !!

    • we have yet to see what Labor will give us..if anything..this is not the final word..this is only Hockey’s word and it can’t be trusted

    • They are tarred with the same brush. I do t mind as long as they have the same ground rules : re their superannuation.

  9. I totally agree with all of the above..
    maybe thats why there will be a savings as a % of us may not be here !!!

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