New Centrelink Rates for March, 2024 March 4th, 2024

Netplan always provides the information you need as soon as it becomes available.

We have the latest Centrelink pension rates and thresholds applying from 20 March 2024. At this stage, we're not sure which particular variable used by Services Australia has generated an increase of nearly $20 a fortnight for singles and a combined $30 for couples. Significantly, this also raises the amount you can earn and have in assets before your pension is cancelled.

Similarly, a peculiarity in the payment rates means your fortnightly pension comprises a base pension plus supplements. Under the rules, Centrelink can't pay you a partial supplement. In other words, it's an all-or-nothing arrangement! The minimum payment you'll receive is $58 a fortnight for singles or $43.70 each for couples, making a combined $87.40 a fortnight.

And here's the bottom line: A home-owning single aged over 67 with about $270,000 in super and savings will essentially receive the full rate of pension at their "magic level," where they get the maximum benefit from the system. This generates a tax-free, indexed income for life of $43,275. That's not including the house, and as we explained in Netplan session 1, if you are okay with seeing the capital decline at a sensible rate, trips to Europe are still on the cards.

A home-owning couple aged 67 or more, with a "magic number" of about $420,000 in super and savings, will be on an income of $64,752 tax-free, most of it indexed twice per year for life. In both cases, the savings from concession cards can amount to thousands per year.

Putting it in perspective, that would be equivalent to one of you working and generating an income of more than $84,000 per year before tax.

Which begs the question: Why are you still working?

Pension rates at 20th March, 2024

Means test at 20th March, 2024

Income test at 20th March, 2024