Understanding how much your partner can earn before your Centrelink Age Pension payment is affected is an important part of financial planning for retirement. This article will explain the rules for how much your partner can earn before your Age Pension payment is reduced, and provide advice for how to make sure your Age Pension is not impacted.
Understanding Centrelink Age Pension
The Age Pension is a payment from the Australian Government to people aged 65 and over who meet certain criteria. It is paid fortnightly and is subject to an income and assets test. The income test looks at the combined income of you and your partner, and if it exceeds a certain amount, the Age Pension payment will be reduced.
How Much Can My Partner Earn?
The amount your partner can earn before your Age Pension payment is affected will depend on your individual circumstances. Generally, the maximum amount your partner can earn before your Age Pension is reduced is:
- $3,062 per fortnight if you are a single person
- $2,521 per fortnight if you are a couple
However, this amount can change depending on your other income and assets. It is important to keep in mind that any income your partner receives, including salary and investments, will be taken into account when calculating your Age Pension payment.
If your partner’s income is close to the maximum amount, it may be worth considering other options such as splitting your income or taking out a pension. This can help to reduce the amount of income your partner earns, and therefore help to keep your Age Pension payment intact.
It is also important to be aware of any changes to the Age Pension rules, as these could have an impact on how much your partner can earn. It is advisable to speak to a Centrelink or financial adviser if you are unsure about how your Age Pension payment will be affected.
Understanding how much your partner can earn before your Age Pension payment is affected is an important part of financial planning for retirement. Knowing the rules and having a clear understanding of your individual circumstances can help you to make sure your Age Pension is not impacted. It is always advisable to speak to a Centrelink or financial adviser if you are unsure about how your Age Pension payment will be affected.
In Australia, retirement benefits are available in the form of Age Pension payments. These payments are managed and awarded by Centrelink. Depending on individual circumstances, a person may qualify to receive Age Pension payments if they meet certain criteria.
One of the criteria related to whether someone is eligible for Age Pension payments is the amount of income they earn and their partner’s employment income. Usually, if the partner earns more than a certain amount then the income and assets test of the combined couple will be applied.
So for many people, the question becomes “how much can my partner earn before my Centrelink Age Pension payment is affected?”
The answer to this question depends on the combined and individual income and assets of the couple. If a single person receiving the Age Pension has a partner who earns more than $3,165 per year, or if the combined yearly income of the couple is more than $70,502, then their Age Pension payment will be reduced.
If the combined yearly income of a couple is between $52,931 and $70,502, then the Age Pension payment will be reduced on a tapered scale. Any income earned over $3,165 will also be subject to a taper reduction.
In addition to the income tests, assets owned by the couple may also be assessed. The amount of asset test free threshold depends on whether the person is a homeowner or non-homeowner. Homeowners have a higher asset free threshold, which allows them to hold more wealth before their Age Pension payment is reduced.
Generally speaking, if a partner’s employment income is more than $3,165 or if combined yearly income is more than $70,502 then their Age Pension payment may be affected. It is important to remember that income and assets will both be assessed before any payment adjustment is made.
By understanding the income and assets test, people can rest assured that their Age Pension payments will not be reduced until those tests have been applied.
