4.10.3 Historical age & invalid (disability support) pension income & assets limits
Summary
This section contains one topic on the historical means, income and assets (1.1.A.290) limits for age and invalid (disability support) pension. Notes to the various tables are included immediately after the relevant table.
This section contains the following tables:
| Table number | Explanation |
|---|---|
| 1 | Means test - July 1909 to October 1958 |
| 2 | Merged means test - March 1961 to May 1975 |
| 3 | Income test - November 1976 to November 1983 |
| 4 | Income & assets test - March 1985 to July 1996 |
| 5 | Assets test - July 1997 to present date |
| 6 | Income test - July 1997 to present date |
Act reference: SSAct section 8(1)-'income'
Table 1: Means test - July 1909 to October 1958
The table shows amounts in dollars. Income is shown in dollars per annum.
Date | Permissible income | Limit of property | Property exemption for children | Income deduction | Notes |
|---|---|---|---|---|---|
| 01/07/1909 | 52 | 620 | 100 (50 each) | - | Note B |
| 13/09/1923 | 65 | 800 | 100 | - | - |
| 13/12/1941 | 65 | 800 | 100 (each) | - | - |
| 15/08/1946 | 104 | 1,300 | 100 (each) | - | - |
| 03/07/1947 | 104 | 1,300 | 100 (each) | 52 | Note C |
| 21/10/1948 | 156 | 1,500 | 200 (each) | 52 | - |
| 01/11/1951 | 156 | 2,000 | 200 (each) | 26 | Note D |
| 02/10/1952 | 156 | 2,000 | 200 (each) | 52 | - |
| 29/10/1953 | 208 | 2,500 | 300 (each) | 52 | Note E |
| 14/10/1954 | 364 | 3,500 | 400 (each) | 52 | Note F |
| 23/10/1958 | 364 | 4,500 | 400 (each) | 52 | - |
Notes for Table 1
| Note | Explanation |
|---|---|
| A | The dates on which the new conditions applied. |
| B | No pension was payable if income or property exceeded the limits. |
| C | $52.00 was allowed as deduction from income for each dependent child (1.1.D.70) under 16 years in custody, care and control. The maximum deduction was reduced by any payment (eg. family allowance, child's allowance, State assistance) received in respect of the child. |
| D | Deduction in respect of dependent children was reduced to $26.00 a year for each child in custody, care and control. The maximum deduction was reduced by any payment (other than family allowance), received for, or in respect of, any child in custody, care and control. Payment was also extended to cover student children to age 21 years. |
| E | Permissible income increased to $260.00 if married, with a partner who was not an income support recipient or service pensioner. |
| F | Income from property excluded from assessment. |
Table 2: Merged means test - March 1961 to May 1975
The table shows amounts in dollars. Income is shown in dollars per annum.
| Date Note G | Means as assessed | Property exemption for children (each) | Income deduction | Notes | |
|---|---|---|---|---|---|
| Single | Married | ||||
| 09/03/1961 | 364 | 364 | 400 | 52 | Note H |
| 13/10/1966 | 364 | 364 | 400 | 156 | - |
| 24/04/1967 | 520 | 442 | 400 | 156 | - |
| 09/10/1969 | 520 | 442 | 400 | 208 | Note I |
| 05/10/1972 | 1,040 | 897 | 400 | 312 | - |
| 04/10/1973 | 1,040 | 897 | 400 | 312 | Note J |
| 01/05/1975 | 1,040 | 897 | 400 | 312 | Note K |
Notes for Table 2
| Note | Explanation |
|---|---|
| G | The dates on which the new conditions applied. |
| H | Merged means test was introduced. Maximum pension was reduced by the amount by which 'means as assessed' (income plus property component) exceeded $364.00. Fixed disqualifying limit of property abolished except to the extent that where there was more than 1 child, no pension was payable if the property component was equal to or exceeded the maximum rate of pension (excluding additional pension for children), plus $364.00. |
| I | Tapered means test introduced. Maximum rate of pension reduced by half of the amount by which means as assessed exceeded permissible means as assessed. |
| J | Removal of the means test on age pensions for residentially qualified persons aged 75 years or more. |
| K | Removal of the means test on age pensions for residentially qualified persons aged 70 years or more. |
Table 3: Income test - November 1976 to November 1983
The table shows amounts in dollars. Income is shown in dollars per annum.
| Date Note L | Permissible income | Income deduction | Notes | |
|---|---|---|---|---|
| Single | Married (each) | |||
| 25/11/1976 | 1,040 | 897 | 312 | Note M |
| 09/11/1978 | 1,040 | 897 | 312 | Note N |
| 08/11/1979 | 1,040 | 897 | 312 | - |
| 04/11/1982 | 1,560 | 1,300 | 312 | - |
| 03/11/1983 | 1,560 | 1,300 | 312 | Note O |
Notes for Table 3
| Note | Explanation |
|---|---|
| L | The dates on which the new conditions applied. |
| M | Property test was abolished. The means test became an income test only with property excluded. However, income from property was included as income. |
| N | Increase beyond the May 1978 rate of pensions to persons aged 70 years or more subject to the income test. |
| O | Payment of the 'frozen' May 1978 rate of pension to age pension recipients aged 70 years or more was subject to a special income test. |
Table 4: Income & assets test - March 1985 to July 1996
The table shows amounts in dollars. Income is shown in dollars per annum.
Date | Permissible income | Allowable assets | Income | ||
|---|---|---|---|---|---|
| Single | Married (each) | Single (homeowners) | Married (each) | Deduction & notes | |
| 21/03/1985 | 1,560 | 1,300 | 70,000 | 50,000 | 312 |
| 01/05/1986 | 1,560 | 1,300 | 75,750 | 54,000 | 312 |
| 25/06/1987 | 1,560 | 1,300 | 83,250 | 59,250 | 312 |
| 09/07/1987 | 2,080 | 1,820 | 83,250 | 59,250 | 624 |
| 23/06/1988 | 2,080 | 1,820 | 89,250 | 63,500 | 624 |
| 22/06/1989 | 2,080 | 1,820 | 96,000 | 68,500 | 624 |
| 23/11/1989 | 2,080 | 1,820 | 96,000 | 68,500 | 624 |
| 26/04/1990 | 2,080 | 1,820 | 96,000 | 68,500 | 624 |
| 13/06/1990 | 2,080 | 1,820 | 103,500 | 73,750 | 624 |
| 01/07/1991 | 2,184 | 1,924 | 110,750 | 78,750 | 624 |
| 01/07/1992 | 2,236 | 1,976 | 112,500 | 80,000 | 624 |
| 01/07/1993 | 2,288 | 1,976 | 112,750 | 80,250 | 624 |
| 01/07/1994 | 2,340 | 2,028 | 115,000 | 81,750 | 624 |
| 01/07/1995 | 2,444 | 2,132 | 118,000 | 83,750 | 624 |
| 01/07/1996 | 2,548 | 2,236 | 124,000 | 88,000 | 624 |
Notes for Table 4
| Note | Explanation |
|---|---|
| P | The dates on which the new conditions applied. |
| Q | Assets test was introduced on 21 March 1985. The assets test only applies if it produces a lesser rate than the income test. Non-homeowners were allowed extra assets of $50,000. The allowable assets amounts did not increase if there were children in the recipient's care. |
| R | As of 1 May 1986 indexation had the effect of varying the allowable assets limit between non-homeowners, that is, $54,000 for single and $54,500 for married. |
| S | From 25 June 1987 the allowable assets limits for non-homeowners became $60,000 more than the assets limit for homeowners. |
| T | From 9 July 1987 the permissible income limits and the income deduction for dependent children were increased. From 20 September 2009, the higher income test threshold for pensioners with dependent children was abolished to align the pension income test with the allowance and family payments income tests. PPS recipients remain receiving their payment based on the 40c withdrawal rate and the additional free area for dependent children. In November 1987 the Earnings Credit Scheme was introduced and abolished from 20 March 1997. |
| U | From 23 June 1988 the allowable assets limits for non-homeowners became $64,000 more than the assets limit for homeowners. |
| V | From 22 June 1989 the allowable assets limits for non-homeowners became $68,500 more than the assets limit for homeowners. |
| W | From 23 November 1989 the special income test applying to age pension recipients aged 70 years or more was fully absorbed. |
| X | From 21 June 1990 the allowable assets limits for non-homeowners became $74,000 more than the assets limit for homeowners. |
| Y | From 1 July 1991 the allowable assets limits for non-homeowners became $79,500 more than the assets limit for homeowners. |
| Z | From 1 July 1992 the allowable assets limits for non-homeowners became $80,500 more than the assets limit for homeowners. |
| AA | From 1 July 1995 the allowable assets limits for non-homeowners became $84,000 more than the assets limit for homeowners. |
| BB | From 1 July 1996 the allowable assets limits for non-homeowners became $88,500 more than the assets limit for homeowners |
Table 5: Assets test - July 1997 to present date
The table shows amounts in dollars per annum.
| Date | Homeowners | Non-homeowners | Notes | ||||
|---|---|---|---|---|---|---|---|
| Single | Couple | Illness separated couple | Single | Couple | Illness separated couple | ||
| 01/07/1997 | 125,750 | 178,500 | 178,500 | 215,750 | 268,500 | 268,500 | - |
| 01/07/1998 | 125,750 | 178,500 | 178,500 | 215,750 | 268,500 | 268,500 | - |
| 01/07/1999 | 127,750 | 181,500 | 181,500 | 219,250 | 273,000 | 273,000 | - |
| 01/07/2000 | 133,250 | 189,500 | 189,500 | 228,750 | 285,000 | 285,000 | - |
| 01/07/2001 | 141,000 | 200,500 | 200,500 | 242,000 | 301,500 | 301,500 | - |
| 01/07/2002 | 145,250 | 206,500 | 206,500 | 249,750 | 311,000 | 311,000 | - |
| 01/07/2003 | 149,500 | 212,500 | 212,500 | 257,500 | 320,500 | 320,500 | - |
| 01/07/2004 | 153,000 | 217,500 | 217,500 | 263,500 | 328,000 | 328,000 | - |
| 01/07/2005 | 157,000 | 223,000 | 223,000 | 270,500 | 336,500 | 336,500 | - |
| 01/07/2006 | 161,500 | 229,000 | 229,000 | 278,500 | 346,000 | 346,000 | - |
| 01/07/2007 | 166,750 | 236,500 | 236,500 | 287,750 | 357,500 | 357,500 | - |
| 01/07/2008 | 171,750 | 243,500 | 243,500 | 296,250 | 368,000 | 368,000 | - |
| 01/07/2009 | 178,000 | 252,500 | 252,500 | 307,000 | 381,500 | 381,500 | - |
| 01/07/2010 | 181,750 | 258,000 | 258,000 | 313,250 | 389,500 | 389,500 | - |
| 01/07/2011 | 186,750 | 265,000 | 265,000 | 321,750 | 400,000 | 400,000 | - |
| 01/07/2012 | 192,500 | 273,000 | 273,000 | 332,000 | 412,500 | 412,500 | - |
| 01/07/2013 | 196,750 | 279,000 | 279,000 | 339,250 | 421,500 | 421,500 | - |
| 01/07/2014 | 202,000 | 286,500 | 286,500 | 348,500 | 433,000 | 433,000 | - |
| 01/07/2015 | 205,500 | 291,500 | 291,500 | 354,500 | 440,500 | 440,500 | - |
| 01/07/2016 | 209,000 | 296,500 | 296,500 | 360,500 | 448,000 | 448,000 | - |
| 01/01/2017 | 250,000 | 375,000 | 375,000 | 450,000 | 575,000 | 575,000 | Note CC |
| 01/07/2017 | 253,750 | 380,500 | 380,500 | 456,750 | 583,500 | 583,500 | - |
| 01/07/2018 | 258,500 | 387,500 | 387,500 | 465,500 | 594,500 | 594,500 | - |
| 01/07/2019 | 263,250 | 394,500 | 394,500 | 473,750 | 605,000 | 605,000 | - |
| 01/07/2020 | 268,000 | 401,500 | 401,500 | 482,500 | 616,000 | 616,000 | - |
| 01/07/2021 | 270,500 | 405,000 | 405,000 | 487,000 | 621,500 | 621,500 | - |
| 01/07/2022 | 280,000 | 419,000 | 419,000 | 504,500 | 643,500 | 643,500 | - |
| 01/07/2023 | 301,750 | 451,500 | 451,500 | 543,750 | 693,500 | 693,500 | - |
| 01/07/2024 | 314,000 | 470,000 | 470,000 | 566,000 | 722,000 | 722,000 | - |
| 01/07/2025 | 321,500 | 481,500 | 481,500 | 579,500 | 739,500 | 739,500 | - |
Notes for Table 5
| Note | Explanation |
|---|---|
| CC | From 1 January 2017, the assets test free areas increased under a one off adjustment as part of the measure to rebalance the assets test parameters. Regular indexation arrangements continued after this date. |
Table 6: Income test - July 1997 to present date
The table shows amounts in dollars per annum.
| Date | Permissible income | |
|---|---|---|
| Single | Couple (each member) | |
| 01/07/1997 | 2,600 | 2,288 |
| 01/07/1998 | 2,600 | 2,288 |
| 01/07/1999 | 2,652 | 2,340 |
| 01/07/2000 | 2,756 | 2,444 |
| 01/07/2001 | 2,912 | 2,600 |
| 01/07/2002 | 3,016 | 2,652 |
| 01/07/2003 | 3,120 | 2,756 |
| 01/07/2004 | 3,172 | 2,808 |
| 01/07/2005 | 3,224 | 2,860 |
| 01/07/2006 | 3,328 | 2,964 |
| 01/07/2007 | 3,432 | 3,016 |
| 01/07/2008 | 3,588 | 3,120 |
| 01/07/2009 | 3,692 | 3,224 |
| 01/07/2010 | 3,796 | 3,328 |
| 01/07/2011 | 3,900 | 3,432 |
| 01/07/2012 | 3,952 | 3,484 |
| 01/07/2013 | 4,056 | 3,588 |
| 01/07/2014 | 4,160 | 3,692 |
| 01/07/2015 | 4,212 | 3,744 |
| 01/07/2016 | 4,264 | 3,796 |
| 01/07/2017 | 4,368 | 3,900 |
| 01/07/2018 | 4,472 | 3,952 |
| 01/07/2019 | 4,524 | 4,004 |
| 01/07/2020 | 4,628 | 4,108 |
| 01/07/2021 | 4,680 | 4,160 |
| 01/07/2022 | 4,940 | 4,368 |
| 01/07/2023 | 5,304 | 4,680 |
| 01/07/2024 | 5,512 | 4,836 |
| 01/07/2025 | 5,668 | 4,940 |
Income over the income free area limits reduces the payment by:
| Date | Family Situation | |
|---|---|---|
| Single | Each partner in a couple | |
| Pre 01/07/2000 | 50c in the dollar | 25c in the dollar |
| On or after 01/07/2000 to 19/09/2009 | 40c in the dollar | 20c in the dollar |
| On or after 20/09/2009 (excluding PPS) | 50c in the dollar | 25c in the dollar |
Note: Transitional arrangements apply for existing pensioners who would have otherwise had their payments reduced.
Part of the Budget 2009-10 (12 May 2009) the Secure and Sustainable Pension Reform Package includes measures to better target pension payments to those who most need support.
From 20 September 2009, the higher income test threshold for pensioners with dependent children was abolished to align the pension income test with the allowance and family payments income tests. PPS recipients remain receiving their payment based on the 40c withdrawal rate and the additional free area for dependent children.
From 20 September 2009, the rate at which extra income above the threshold affects the pension changed from 40c to 50c in the dollar for singles. For couples, the rate changed from 20c to 25c in the dollar for each member of a couple.
A transitional safety net does apply for the existing pensioners who would otherwise have their payments reduced by the new income test rules. These pensioners continue to receive their existing payment based on the current 40c withdrawal rate and the additional free area for dependent children, until they are better off under the new rules, including the 50c withdrawal rate.