Latest news with #JobSeekerCentrelink
Yahoo
25-03-2025
- Business
- Yahoo
Centrelink win for 460,000 pensioners in $450 million budget move
Deeming rates will remain frozen for another year, allowing pensioners to keep more of their Centrelink payments in their pockets. The government confirmed it would not lift rates in the 2025 Federal Budget to help older Aussies deal with the rising cost of living. Deeming rates are the rates of return the government assumes people earn on their financial assets, regardless of what they actually earn. That means if you earn more than the deemed rate, it isn't counted by the government when working out your payments. It applies to financial assets like shares, superannuation and bank accounts. The freeze applies to all people receiving Centrelink payments, including around 460,000 age pensioners whose rate of payment are impacted by deeming. RELATED Centrelink recipient hits out at 'pointless' $3.10 cash boost amid calls to drastically increase JobSeeker Centrelink change to see thousands more Aussies eligible for age pension Centrelink indexation cash boost for pensioners, JobSeekers and carers: 'Up to $182' Rates have been at their current levels, with a lower rate of 0.25 per cent and an upper rate of 2.25 per cent, since May 2020. Usually rates track in-line with the Reserve Bank of Australia cash rate, which is currently 4.10 per cent. While deeming rates were not mentioned in the Budget papers, a Department of Social Services representative has said they will remain frozen for another year. The former Coalition government froze rates in 2022 for two years as a cost-of-living measure after the RBA started increasing interest rates. The Labor government then extended this freeze last year to July 1, 2025. The decision not to lift deeming rates will be a hit to the budget. The government has estimated that a 1 percentage point increase in deeming rates saves about $1.8 billion over the four-year forward estimates, or about $450 million a singles, the first $62,600 of your financial assets have a deemed rate of 0.25 per cent. Anything over $62,600 is deemed to earn 2.25 per cent. For couples where at least one person gets a pension, the first $103,800 of your combined assets have a deemed rate of 0.25 per cent. Anything over $103,800 is deemed to earn 2.25 per cent. The government indexes deeming rate thresholds every July 1, in line with increases in the cost of living. You can read more about deeming rates and how they impact your pension here. The Labor government has promised to reduce the price of PBS-listed medicines to no more than $25 a script, should they be re-elected. This would reduce the cost of four out of five PBS medicines and cut maximum costs by more than 20 per cent from January 1, 2026. Pensioners and concession cardholders will continue to have medicine costs frozen at $7.70 until in to access your portfolio
Yahoo
19-03-2025
- Business
- Yahoo
Thousands more eligible for Centrelink payment from today
Thousands more Aussie seniors are set to qualify for the Age Pension when changes come into effect on Thursday. Pension rates will be going up today, and so will the upper thresholds of the income and asset tests applied by Centrelink. To receive the Age Pension, you need to be at least 67 years old and pass an income test and an asset test. From today, the upper cut-off thresholds for these tests will increase. That means people will be able to earn more and have more assets and still be able to qualify for a part-pension. Part-pensioners are also entitled to the Pensioner Concession Card, which offers cheaper health care, medicines and discounts estimated to be worth more than a thousand dollars per year. RELATED Centrelink recipient hits out at 'pointless' $3.10 cash boost amid calls to drastically increase JobSeeker Centrelink cash boost to hit accounts this week: 'Critical' Tiny Aussie town offers $680,000 salary to attract one worker: 'More than just money' Here's a breakdown of the changes. Single pensioners will be able to earn a maximum of $2,510 a fortnight to qualify for a part Age Pension, up $9.20 a fortnight from $2,500.80. Couple pensioners will be able to earn a maximum of $3,836.40 a fortnight, up $14 a fortnight from $3,882.40. To get the full Age Pension, singles are only allowed to earn $212 per fortnight and couples $372 combined per fortnight. These figures don't include the work bonus scheme, which allows seniors to earn up to $300 a fortnight from employment before their pension is impacted. Single homeowners will be able to have assets of $697,000 to qualify for a part Age Pension, while single non-owner-owners can have $949,000. That's up $1,500 from $695,500 and $947,500 respectively. Couple homeowners will be able to have combined assets of $1,047,500 and get a part amount, while couple non-homeowners can have $1,299,500. The figures are up $2,000 from $1,045,500 and $1,297,500. To get the full Age Pension, singles are only allowed to have $314,000 as homeowners and $566,000 as non-homeowners. Couples are allowed to have $470,000 in assets as homeowners and $722,000 as non-homeowners to get the full amount. The Age Pension, along with other payments like JobSeeker, the Disability Support Pension, Carer Payment and the Parenting Payment will increase on today with regular indexation. The maximum single rate for the Age Pension will increase by $4.60 to $1,149 a fortnight, while the partnered rate will increase by $3.50 each to $866.10, or a combined $7 to $1,732.20 a fortnight. Social Services minister Amanda Rishworth said the small boost would hopefully help recipients dealing with cost-of-living pressures. 'Indexation is a critical part of our social security safety net,' she said. 'For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.'Sign in to access your portfolio
