More than 300,000 part-pensioners will either suffer a cut in their payments or lose access under new asset test rules coming into effect on 1January 2017.
Under the deal struck between the Coalition and the Greens, more than 90 per cent of pensioners will be better off or have no change to their payment.
Around 171,500 pensioners with “modest assets” will receive an average pension rise of $30 a fortnight, 236,000 part-pensioners will have their payments reduced, and 91,000 part-pensioners will lose access altogether.
The family home remains exempt.
The new asset test-free thresholds will be 8250,000 for a single homeowner, 5375,000 for a homeowner couple, $450,000 for a single non-homeowner, and
$575,000 for a non-homeowner couple. The “taper rate”, or amount by which pension payments are reduced, will double from $1.50 to 53 for every $1000 in assets owned above the threshold. Experts have warned of the “double hit” to the 91,000 part-pensioners, who will also lose discounts on things like council rates and public transport.
To ensure you, your family and friends are receiving your maximum entitlements please feel free to call us and arrange a review with our Financial Planning team