Have The July Centrelink Changes Affected
Your Pension or Aged Care Costs?

For many older Australians, the Age Pension provides an important source of financial security. But working out whether you are receiving the right payment can be confusing, particularly when government rules and thresholds are constantly changing.

Every July, Centrelink updates a range of income and asset thresholds that determine who qualifies for a full Age Pension, a part pension or no payment. The latest changes came into effect on 1 July 2026 and may mean some older Australians are now eligible for a higher payment or support they previously missed out on.

For carers supporting a parent, partner or family member, these changes are worth understanding. Your Centrelink assessment does not just affect pension payments. It can also influence aged care costs, including contributions for Support at Home and fees for residential aged care.

What Changed in July 2026?

The Australian Government regularly adjusts Centrelink thresholds through indexation. These updates help account for changes in the cost of living and other economic factors.

The July 2026 changes increased the amount of assets a person can have before their Age Pension is affected.

The current asset thresholds for a full Age Pension are:

• Single homeowner: up to $333,000
• Couple homeowners: up to $499,000 combined
• Single non-homeowner: up to $600,000
• Couple non-homeowners: up to $766,000 combined

These figures are the point at which the assets test begins to reduce the amount of pension payable.

It is important to remember that exceeding these limits does not mean someone automatically loses their pension. The payment gradually reduces as assessable assets increase.

For some older Australians who were previously just above the threshold, the July changes may have resulted in a higher pension payment or eligibility for a part pension.

How Does the Centrelink Assets Test Work?

The assets test looks at the value of assets owned by you or your partner.

This may include:

• Savings and term deposits
• Shares and investments
• Investment properties
• Vehicles and other valuable assets

Your principal home is generally exempt from the assets test while you continue living there. However, this can become more complicated if someone moves into residential aged care.

For example, if an older person leaves their home to enter aged care, the way that property is assessed may depend on their circumstances, including whether it is rented or remains vacant.

This is one of the reasons financial planning becomes an important part of aged care decisions.

Income Test Changes May Also Affect Payments

Centrelink also uses an income test when assessing Age Pension eligibility.

This looks at how much income you receive, including sources such as employment, investments and other regular payments.

From July 2026, the income-free area increased, allowing pensioners to receive slightly more income before their pension payment begins to reduce.

The updated limits mean:

• Singles can earn an additional $8 per fortnight before their pension is affected
• Couples can earn an additional $16 per fortnight combined

While these increases may seem small, they may be helpful for older Australians who continue working, receive investment income or have changed their financial circumstances.

Why Centrelink Changes Matter for Aged Care

Many families are surprised to learn that Centrelink assessments can affect more than just pension payments.

When someone accesses government-funded aged care, their income and assets may be assessed to determine what they contribute towards the cost of their care.

This can include:

• Income-tested contributions under Support at Home
• Means-tested fees in residential aged care
• The level of government assistance provided towards care costs

This means a change in your financial assessment may affect the amount you pay for care. For example, if someone’s circumstances change and they become eligible for a different Centrelink payment, it may be worth checking whether their aged care contribution has also changed.

What Should Carers Check After the July Updates?

For many carers, keeping track of Centrelink rules is another responsibility added to an already busy role.

You may already be helping a loved one manage appointments, medical information, household tasks and decisions about future care.

Taking time to review their financial position can help avoid surprises later.

Some questions to consider include:

• Has your loved one’s income or asset position changed?
• Are they receiving the correct Centrelink payment?
• Has their aged care situation changed since their last assessment?
• Could their care costs be affected by updated information?

Even small changes in circumstances can sometimes have an impact, particularly for people who are close to an assessment threshold.

If you are unsure where to start, Aged Care Decisions can help you understand your options and compare Support at Home providers or aged care homes that match your loved one’s needs and budget.

What if Someone is Moving into Residential Aged Care?

Moving into aged care is a significant life change, and finances are often one of the biggest concerns for families.

Centrelink information can play an important role in understanding what someone may need to contribute towards their care.

Before making major decisions, such as selling a home, gifting money or investing savings differently, it is important to know how those decisions may affect future assessments.

Every person’s situation is different. The rules can depend on factors such as whether someone is single or part of a couple, whether they own their home and what other assets they hold.

For specific advice about your circumstances, consider speaking with a qualified financial adviser who understands aged care.

Staying Informed Can Make Aged Care Decisions Easier

Government payments, aged care fees and financial assessments can feel overwhelming, especially when you are supporting someone you love.

However, understanding the basics can help you feel more prepared and make more informed decisions.

If you or someone you care for receives the Age Pension, it is worth checking whether the July 2026 changes have affected your payments or aged care costs.

When you are ready to explore care options, Aged Care Decisions offers a free, independent service to help you find and compare Support at Home providers or residential aged care homes suited to your loved one’s needs.

Visit agedcaredecisions.com.au or call 1300 775 870