Significant changes to the age pension to come into effect on July 1

The changes have been welcomed by advocates and are designed to allow one group of Australians to stay in the workforce for longer.

The eligibility age for the pension will increase to 67 years of age from July 1. Picture: NCA NewsWire / Emma Brasier

Threshold changes to the age pension are set to encourage older Australians to stay in the workforce for longer in a bid to ease the country’s labour shortage.

As of July 1, the eligibility age for the pension will increase to 67 years, while singles can earn $204 a fortnight and couples $360 before losing their full pension.

Significantly, part-rate homeowner couples could receive an increase of up to $97.50 per fortnight while single homeowners could receive an increase of up to $62.25 per fortnight, pending asset tests.

These increases are variable and depend on partner status, income and asset tests, and home ownership status.

The income threshold for singles and couples aged over 67 will increase to $204 and $360 a fortnight respectively. Picture: NCA NewsWire / Naomi Jellicoe

Single homeowners can now have around $301,750 of assets and single non-homeowners can have $543,750 before their full pension payment is reduced.

These are increases of $21,750 and $39,250 respectively.

Couple homeowners have a combined asset threshold of $451,500, up $32,500, while couple non-homeowners have a limit of $693,500, up $50,000, before their full pension is affected.

The disqualifying income threshold – the amount at which individuals or couples no longer qualify for a pension payment – is at $2332 and $3568 per fortnight for singles and couples respectively.

The disqualifying asset threshold is at $656,500 and $898,500 for single homeowners and non-homeowners respectively and $986,500 and $1,228,500 for couple homeowners and non-homeowners.

It is hoped the changes will relieve some pressure on the nation’s labour shortage. Picture: NCA NewsWire / Gary Ramage

These raised thresholds have increased significantly from current requirements, up anywhere from $21,750 to $50,000 from present disqualifying asset ceilings.

Increases to upper thresholds mean some Australians who did not qualify for the age pension before, due to their assets or income, will now meet the requirements.

In addition, some Aussies who were receiving partial payments might now receive the full pension payment.

For those already receiving the full pension payment, it is unlikely the changes will affect them.

A March survey revealed 80 per cent of older Aussies had been impacted by rising cost of living costs. Picture: NCA NewsWire / Emma Brasier

Industry experts have flagged many age pensioners who are struggling to make ends meet amid the cost of living crisis will welcome the new measures.

Australians who meet age, income and asset requirements for the age pension can submit their claim in the 13 weeks prior to turning 67.

Different payment rates under the pension are indexed at different times throughout the year to different price indexes and wage measures, as defined in the legislation.

The National Seniors Social Survey, released in March, revealed 80 per cent of older Australians had been impacted by increasing living costs.

The number of Aussies aged over 50 who reported being “severely” impacted by cost increases was projected to rise further over the next 12 months.