There are a few sweeteners related to senior citizens announced in this budget.
Encouraging pensioners back into the workforce. (From 2022-23)
Age and veteran pensioners will be able to work and earn more before their pension is reduced. The Government is providing a one-off $4,000 credit to their Work Bonus income bank.
The temporary income bank top-up will increase the amount pensioners can earn in 2022–23 from $7,800 to $11,800 before their pension is reduced, supporting pensioners who want to work or work more hours without losing their pension.
The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. Under the current rules, the first $300 of fortnightly income from work is not assessed or counted under the pension income test. The Work Bonus operates in addition to the pension income test-free area.
When the work bonus is not used in a fortnight, it accumulates in an income bank where the standard maximum is $7,800. This allows pensioners who work on an ad hoc basis to not be disadvantaged compared to those with regular fortnightly income.
Aged care reform
As previously announced, $2.5bn will be provided over four years to improve the quality of aged care in residential aged care facilities by requiring all facilities to have a registered nurse onsite 24 hours per day, seven days a week from 1 July 2023 and increasing care minutes to 215 minutes per resident per day from 1 October 2024.
The reforms also enable the Government to cap charges that approved home care providers (home care providers) may charge care recipients and removes the ability of home care providers to charge exit amounts.
Lifting the income limit on Seniors’ Health Card.
As previously announced, the income test limits will be increased for access to the Commonwealth Seniors Health Card (CSHC). The CSHC provides subsidised pharmaceuticals and other medical benefits for self-funded retirees that have reached aged pension age.
The income test captures adjusted taxable income plus deeming on account-based pensions unless grandfathered under the pre-1 July 2015 rules. The CSHC is not asset-tested.
|
Current |
New |
|
| Single | $61,284 | $90,000 |
| Couples combined | $98,054 | $144,000 |
Legislation enabling the increase is before Parliament.
The Government will also freeze social security deeming rates at their current levels for a further two years until 30 June 2024.
Income support asset test extended on proceeds of the sale of the primary residence.
As previously announced, the Government is:
- Extending the assets test exemption for principal home sale proceeds from 12 months to 24 months for income support recipients, and
- Changing the income test to apply only the lower deeming rate (0.25%) to principal home sale proceeds when calculating deemed income for 24 months after the sale of the principal home.
The exemptions apply until the income support recipient acquires another primary residence or the 24-month period expires. The Bill enabling the extension is currently before Parliament.
Total and permanent incapacity payments to veterans. (From 2022-23)
The Special Rate of Disability Compensation Payment, Temporary Special Rate Payment, and the Special Rate Disability Pension for veterans will increase by $1,000 per year.
