Urgent Warning: Retirees Could Lose $1,500 in Entitlements Starting Next Week. Retirees could lose thousands of dollars over their golden years by not making changes to their superannuation account, a policy advocacy group says. In April 2025, the Australian government will roll out a one-time, tax-free pension payment of up to $5500 for eligible seniors.
Urgent Warning: Retirees Could Lose $1,500
The rapid rise in inflation has made the lives of Aussies more challenging. Many are not even able to afford basic necessities in Australia. Retirees who no longer qualify for the part pension stand to lose, at a conservative estimate, $1500 in benefits, which often include discounts on car registration, property costs, and council rates, in addition to thousands of dollars in income from the pension payments themselves.
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However, the loss of a series of other Pensioner Concession Card benefits is expected to put further strain on the finances of the affected retirees, including about 91,000 Australians, who will have part pension payments cut.
In NSW, a pensioner concession card is estimated to save retirees about $1495 a year, the Association of Superannuation Funds of Australia (ASFA) calculates. The sum includes a $640 reduction in water, sewerage and stormwater charges; a $300 discount on car registration; a $250 discount on council rates; a $235 discount on electricity and a $50 discount on the pensioner’s driver’s licence fee.
For self-funded senior citizens who are not eligible for the Age Pension, the Commonwealth Seniors Health Card offers access to:
- Discounted prescription medicines
- Bulk-billed doctors visits
- Concessions on utility bills and public transport
Loss of income
The benefits losses are in addition to income losses of more than $13000 a year in a 3% growth environment for part pensioners with $800,000 in non-home assets that will be excluded under new eligibility tests, according to ASFA calculations. National Seniors has also done the sums and estimates the Pensioner Concession Card is about $2000 more generous than the CSHC, based on averaging out state benefits, including energy and pension supplements, in Australia.
Don’t Forget about Taxes and Healthcare
If you are looking to live on $1500 per month, understanding the tax implications of your social security benefits, pensions, and any other income sources is also important.
Eligibility criteria for pension Scheme
To be eligible for these pensions, the individuals must fulfil the eligibility criteria:
1. Age Pension
The Age pension is the main source of monetary support for eligible persons; it is offering fortnightly payments based on income and asset tests.
- The applicant must be 67 years old or older.
- They must have been a citizen or a permanent resident of Australia who has lived in Australia for at least 10 years.
- They must have passed an income and asset test.
2. Commonwealth Seniors Health Card (CSHC)
For self-funded senior citizens who are not eligible for the Age Pension, the Commonwealth Seniors Health Card offers access to:
- Discounted prescription medicines
- Bulk-billed doctors visits
- Concessions on utility bills and public transport
Eligibility:
- The applicant must be above the age pension.
- They must meet the income thresholds ($61,284/year for singles and $98,054/year for couples).
- There is no need for an asset test for a health card.
3. Energy Assistance payout
The energy assistance payments assist pensioners and households with low incomes in managing rising electricity and gas expenses.
- The applicant must be receiving a government pension or allowance.
4. Rent Assistance
Renters who are having difficulties with high housing costs may be eligible for Centrelink rent assistance.
- Age Pension, carer Payment, or Disability Support Pension
- ABSTUDY Living Allowance, Austudy or youth Allowance
- Special Benefit
- Family Tax Benefit—part a at more than base rate
- Parenting payment, partnered and single
- Jobseeker Payment or farm Household Allowance
5. Pensioner Concession Card
Discounts on prescription drugs, public transportation, utility bills, and council rates are available to holders of the Pensioner Concession Card.
- This payment is available to age pension and Disability Support Pension Recipients
- Some self-funded retirees may also qualify
Conclusion
In this article we discussed the urgent warning: retirees could lose $1,500 in entitlements starting next week. Retirees who no longer qualify for the part pension stand to lose, at a conservative estimate, $1500 in benefits, which often include discounts on car registration, property costs and council rates. The applicant must be 67 years old or older. The applicant must be receiving a government pension or allowance. For more information, you can visit the official website in Australia.