Indexation of rates 1 July 2022

From 1 July 2022, the Income Free Areas and Assets Value Limits used to calculate rates of income support pensions rose, under the Veterans' Entitlement Act 1986 (VEA). 

Summary of Income Limits changes effective 1 July 2022

The following table provides an overview of the amount of income (per fortnight) an income support pensioner may receive before their pension is reduced under the income test.

Table 1. Overview of the amount of income (per fortnight) an income support pensioner may receive before their pension is reduced under the income test
  Single rate (fortnightly) Couples rate – combined (fortnightly)
Service or Age Pension  $190.00  $336.00

Income Support Supplement

(War Widow(er)'s Pension is included in these amounts)

  • Different limits apply if assessed under transitional rules
  $1,541.80  $2,080.80

 

Summary Asset Limits for Pensions changes effective 1 July 2022

The table below provides an overview of the maximum value of assets a person can have before their pension is affected.

Table 2. Overview of the maximum value of assets a person can have before their pension is affected
  Single rate Couples rate – combined
Service or Age Pension    
Homeowner  $280,000.00  $419,000.00
Non-homeowner  $504,500.00  $643,500.00

Income Support Supplement

  • Different limits apply if assessed under transitional rules
    
Homeowner  $505,500.00  $710,000.00
Non-homeowner  $730,000.00  $934,500.00

 

Summary of Deeming Thresholds effective 1 July 2022

The deeming thresholds increased from 1 July 2022. This means that the value of financial assets deemed to be earning the lower rate of 0.25 per cent has increased. The higher deeming rate of 2.25 per cent is applied to the balance of financial assets over these thresholds.

Table 3. Summary of Deeming Thresholds effective 1 July 2022
  Single rate Couples rate – combined
Deeming threshold  $56,400.00  $93,600.00

 

Summary of Payment Rates changes under the MRCA, effective 1 July 2022

Certain payments under the Military Rehabilitation and Compensation Act 2004 (MRCA) have increased as a result of the 1 July 2022 Indexation. An overview of these entitlements is provided in the table below.

Table 4. Overview of entitlements under MRCA that have increased as a result of 1 July 2022 indexation.
  New rate (weekly)
Maximum Permanent Impairment amount  $375.80
Maximum rate of Household Services  $532.11
Maximum rate of Attendant Care Services  $532.11
Dependent eligible young person  $160.91

A full list of the new rates is available from the DVA website in the CLIK tool under the Quick links heading. For further information, contact DVA on 1800 VETERAN (1800 838 372).