In May, the Federal Government handed down its annual budget. Income tax rates were left unchanged and no new taxes on superannuation were introduced. The budget delivered mixed news for people currently receiving the age pension.
The Government has decided not to proceed with the indexation of the Age Pension payment rates linked to inflation only. They will also maintain the current deeming thresholds. In addition, the Assets Test threshold for the full pension will be increased. However, the maximum level of assessable assets for a part Age Pension will reduce. Pensioners who lose their pension entitlement will automatically be issued with a Commonwealth Seniors Health Card.