Pension adjustments 1 January 2017

In the Federal Budget of May 2015 the government announced both good news and bad news about future pensions. The god news was that from January 2017 the asset test lower limit for a single person will rise from $209,000 to $250,000 and for a couple will rise from $296,500 to $375,000, moving around 100,000 part-pensioners to full pension status.
The bad news was that the higher asset test threshold for individuals will be reduced to $542,500 from $793,750 and for couples to $816,000 from $1,178,500. To exacerbate the impact, the phase-out rate will reduce the pension by $3.00 per fortnight for each $1,000 over the lower threshold rather than the current $1.50. It has been estimated that as a consequence 300,000 current pensioners will have their pension removed or cut.

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