After retirement the only source of income left for the retired people is the pension provided by the country in a nation. Australian retirees can use their retirement income as their source of income. Some take out this amount in one go and some take out a small amount on a monthly basis.
Mostly, people prefer the monthly payment method as it prevents them from getting taxed until the account balance becomes taxable. The below article includes the pension rates and amount set by the Centrelink. So, let’s dive more into the details in the below article.
Australia Minimum Pension 2024
The Australia Minimum Pension is the amount that retirees can take out every year from their account. The amount is affected by some factors such as the age and the account balance of pensioners as of July 1 every year. It is predicated on the standards set by the government and the super income.
If a retiree is under 65, then they must take out at least 4% of the balance. As people get older they receive a higher amount of their super income to cover their retirement needs. The income criteria is set by the authority of social welfare in Australia, i.e., Centrelink.
Highlights of Australia Minimum Pension 2024
| Title | Australia Minimum Pension 2024: Payment Rates and Amount |
| Country | Australia |
| Beneficiaries | Old Age People of the country |
| Authority | Centrelink |
| Frequency of Payment | Either monthly or annually (Based on the people’s preference) |
| Payment Rates | Based on the recipient’s age |
| Post Category | Finance |
| Official Portal | Service Australia |
Minimum Pension Rates
The pension rates are calculated according to the age of the recipient. For example- if a person is 75 years old and with a net balance of $400,000 in their account then they are entitled to receive up to 6% of the annual payment which is equal to $24,000. However, if necessary you can take out an extra amount from the balance.
The below chart shows the minimum pension rates of different ages-
| Age of Retirees | Minimum rate to withdraw the payment in 2024 |
| Younger than 65 | 4% |
| 65-74 | 5% |
| 75-79 | 6% |
| 80-84 | 7% |
| 85-89 | 9% |
| 90-94 | 11% |
| 95 years and above | 14% |
Note: The lump sum amount becomes taxable if it exceeds the range of the account balance set by the government of Australia.
Pension Payment Dates
The Pension payment is made biweekly (once in two weeks). Those who prefer monthly payment are getting paid on 8th, 14h and 28th of each month. The payment is made biweekly to provide regular financial support to the retired people.
Due to the rise in inflation, the government of Australia also provides additional supplementary payments. Singles can receive $43.90 to $81.60 as a supplementary payment and couples can receive $33.10 to $61.50.
Pension Payment Amount
In 2024, the work bonus permits pensioners to receive $300 per week without affecting their pension payments. It helps those people who do not have enough income or savings.
From July 2024, single pensioners will be entitled to receive $1,064 with an increase of $19.60. Couples or partners living together will receive $1604.00 with an increase of $28.80 in every two weeks.
Latest Updates
Pensioners with a retirement income stream will receive the first payment each year according to the balance available in their accounts. The income will be deposited directly in their bank accounts at the end of July.
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The government of Australia has made an increase in transportation grants from 8% to 15%. Medication allowance has increased to up to 6.7% and 12% increase in energy bills. The main motive of increasing these percentages was to reduce financial strain from the seniors citizens of the country. It will help them to maintain a healthy lifestyle with the availability of all the necessary goods and services.
FAQs of Australia Minimum Pension 2024
The pensioners who are above 75 years old, will receive 6% of their account balance.
The payments are made biweekly on every 8th, 14th and 28th of each month.
The pensioners were dealing with the financial stress, due to an increase in the cost of living. That’s why the government decided to increase the transportation grants.
Riya Claire is the Editor-in-Chief of the East Hampton Chamber Portal. She holds a degree in Mass Communication, an MBA in Finance, and a diploma in HR, making her a versatile professional for an online portal