May 2014 Budget Edition -- Age pension reforms

INDIVIDUALS & FAMILIES

Age Pension reforms

Qualifying Pension age increase

The Age Pension qualifying age will continue to increase by six months every two years, such that it will reach a qualifying age of 70 by 1 July 2035. The following table sets out the Age Pension eligibility age by date of birth:

Date of birth between Age at which eligible for age pension
1 July 1952 and 31 December 1953 65½
1 January 1954 and 30 June 1955 66
1 July 1955 and 31 December 1956 66½
1 January 1957 and 30 June 1958 67
1 July 1958 and 3 December 1959 67½
1 January 1960 and 30 June 1961 68
1 July 1961 and 31 December 1962 68½
1 January 1963 and 30 June 1965 69½
1 July 1964 and 31 December 1965 70

This measure will not affect those born before 1 July 1958.


Income Test
The government will change how it deems the return from a person's financial assets for the purposes of the pension income test. The deeming thresholds will be reset from $46,600 to $30,000 for single pensioners and from $77,400 to $50,000 for pensioner couples from 1 September 2017.

Indexation Changes
From 1 September 2017, pension increases will be linked only to the Consumer Price Index (CPI).

Commonwealth Seniors Health Card Changes
From 20 September 2014 the income thresholds for the Commonwealth Seniors Health Card will be indexed annually to the CPI. Payments of the Senior Supplement will also cease after the June 2014 payment.

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