Australia’s Age Pension Thresholds Rise July 1: Who Gets a Boost

Australia’s Age Pension deeming thresholds increased on July 1, 2026, after annual indexation. Single pensioners now have $66,800 assessed at the lower 1.25% deeming rate, up $2,600, while couples have $110,600 combined, up $4,400. The change means more of a pensioner’s savings escape the higher 3.25% rate, potentially boosting payments for part-pensioners with financial investments.

How the deeming threshold change works

Deeming is how Centrelink estimates income from financial assets like bank accounts, shares, and managed funds when assessing Age Pension eligibility. Assets below the threshold are deemed to earn 1.25%, while assets above earn 3.25%. The higher the deemed income, the lower the pension payment. By raising the thresholds, more of a pensioner’s savings now fall into the lower-earning bracket, reducing deemed income and potentially increasing their Age Pension payment.

Who benefits from the July 1 changes

Part-pensioners with financial investments stand to gain the most from higher thresholds. Emeritus professor Michael Sherris at UNSW Business School told The Senior the impact would generally be modest. “It really depends on their situation, what assets they have, what pension income they receive and whether they own a house,” he said. Full-pensioners with assets below the threshold see no change, as their payments are already at the maximum rate.

The deeming rates stay unchanged

While the thresholds increased through indexation, the deeming rates themselves remained fixed. The lower rate stays at 1.25% and the upper rate at 3.25%. This means the government’s method for calculating deemed income from investments has not altered, only the dollar amount at which the higher rate kicks in. Pensioners should review their financial situation to understand whether the threshold shift affects their payments.

What this means for your Age Pension

If you receive a part-pension and hold financial investments, the July 1 threshold rise may deliver a small payment boost. The change allows more of a pensioner’s savings and investments to be assessed at the lower deeming rate, reducing their deemed income. However, the benefit depends on your total assets, other income sources, and home ownership. Services Australia can provide a personalised assessment of your eligibility and payment amount.

Final Thoughts

The July 1 threshold increase offers modest relief to part-pensioners with modest investment balances. While the deeming rates themselves did not change, more savings now escape the higher 3.25% assessment. Check with Services Australia to see if your payment has risen.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.