Centrelink annual threshold increases as of 1 July 2022

Annual increases to threshold amounts relating to Centrelink benefit eligibility will apply from 1 July 2022.

The changes mean that people eligible for less than the maximum amount of payment will receive increased payments and some who were not previously eligible for a payment may become eligible. The increases are not huge, but every bit helps.

Below are details of how the changes may affect pension payments.

If your pension is reduced due to the income test, there are two threshold changes that can result in increased payments.

  1. The standard income test thresholds
Singles Couples
Threshold increase per fortnight (F/N) $10 $16
Maximum F/N income for full pension $190 $336
Maximum F/N income for part pension $2,165.20 $3,313.60
Maximum F/N pension increase $5.00 $8.00
  1. The lower deeming rate threshold. This change is minor and only affects those with financial assets, subject to deeming provisions, greater than the current low-rate threshold ($53,600 for singles or $89,000 for couples).
Singles Couples
Threshold increase $2,800 $4,600
Threshold until 30 June 2022 $53,600 $89,000
New threshold $56,400 $93,600
Maximum F/N pension increase $1.08 $1.77

If your pension is reduced due to the assets test, the below changes apply.

Singles Couples
Homeowner? Y N Y N
Threshold increase $9,500 $17,500 $14,000 $22,000
Maximum Assets for full pension $280,000 $504,500 $419,000 $643,500
Maximum Assets for part pension $609,250 $833,750 $915,000 $1,140,000
Maximum F/N pension increase $28.50 $52.50 $42.00 $66.00

Given the drop in some asset values in the past year e.g. shares and superannuation, part-pensioners may also benefit by ensuring that Centrelink has up to date values for assets held.

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Timely information for those who may be in the position of dealing with Centerlink for pension entitlement.
No doubt with interest rates on the way up, so too interest from cash. And deeming rates.
And there will be super accounts that lose value this year.
Time to do some checks.

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Noting that it comes under the heading of ‚ÄúPolitical promises‚ÄĚ, the new Government has stated an intention to freeze deeming rates at the current levels for two years.

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